After Acquisition, Baja Fresh Looks For A Revival

When Chain Leader last covered Baja Fresh in September 2002, the fresh-Mexican chain was the darling of the industry. The company had recently been acquired by Wendy’s for $275 million and was preparing for growth. But soon thereafter, comps began to decline. Observers blamed the nosedive on aggressive competition in the segment, including the rise of Chipotle and Qdoba, as well as poor site selection, forcing stores to cannibalize sales.

That’s why a consortium of investment groups led by David Kim, a franchisee of Cinnabon and Denny’s, was able to snag the chain for a bargain $31 million in November. President James Walker, former president of CinnaWorkS, the largest franchisee of Cinnabon, shared some details with Chain Leader about how the new management team plans to revive the ailing chain.