LOCAL RESTAURANT OWNER STARTS WITH ONE LOCATION AND EXPANDS TO 32

Rodolfo Sanchez seems to be modeling his company's expansion after the quick-service pace of his Muchas Gracias restaurants.

The ingredients? "Determination and hard work," said Sanchez, through his Spanish language interpreter and consultant, Cefar Chavez. An amiable businessman with a warm smile, Sanchez, 43, apologizes for his limited English skills. He's still mastering the language, Chavez said.

However, Sanchez has quickly caught on to today's business formula for market dominance through expansion. Based in Vancouver since 1997, Muchas Gracias Mexican Food has grown from a single fast-food restaurant to a franchise chain of 32 outlets throughout Washington and Oregon.

"We expect to open nine more places in the two states within four months," said Sanchez, including a new east Vancouver location near Northeast 162nd Avenue and Ward Road.

The new site represents a turning point for Sanchez, who founded his first Muchas Gracias in a defunct Taco Time restaurant in St. Helen's, Ore., in 1993. He moved the concept north to Vancouver in 1997, transforming a former Fourth Plain Boulevard Taco Bell, a Hazel Dell A&W, and downtown Vancouver's former Spic ‘n Span drive-up into Muchas Gracias restaurants. Taking over vacant sites kept startup costs low, Sanchez said.

MUCHAS GRACIAS Mexican Food • Founder and Owner: Rodolfo Sanchez • Headquarters: 116 N. E. 117th Ave., Vancouver •  What: A 32-store franchise chain of Mexican fast-food restaurants in Washington and Oregon • Employees: 450 • Established: 1993 • Looking ahead: Muchas Gracias will open new sites in Wahington and Oregon within the next four months with expansion possibilities in Idaho, Colorado, Arizona and California

Franchise driven
"As we've been growing, we have been accepted in other areas, including shopping centers," he said, adding that franchise owners determine where they'll start up, whether they open a brand-new retail site, at approximately $180,000, or launch from a vacated site. Sanchez spent the past two years converting Muchas Gracias to a franchise model and is now set for the exponential growth. The chain's San Diego-influenced menu features meat-stuffed burritos, chimichangas and fish tacos, a Tex-Mex fare still somewhat uncommon to many parts of the country.

Rapid-fire ordering
The Muchas Gracias fast-service concept, in which counter workers relay orders in rapid-fire Spanish, "is very successful in the Anglo community," Sanchez said.

While franchise opportunities are open to everyone, Sanchez said all new Muchas Gracias owners are, so far, Latino. "Most are Mexican-American, but some are from Central, South and Latin America," he said.

Experts say franchising minimizes risks to new business owners, especially inexperienced restaurateurs. "They receive a pre-written business plan, which makes it easier," said James Steiner, a business development specialist with the U.S. Small Business Administration's Portland office. "What you're paying for is branding, logos, uniforms and designs - everything is pre-made," Steiner said. It's also easier to get a small business loan because of the prior successful track record of the expanding franchise business.

Sanchez said he hopes to help new entrepreneurs while expanding to new regions as well. "We're looking into Idaho, Colorado, Phoenix and California," said Sanchez, who arrived in San Diego from San Luis Potosi, Mexico, in 1980. He dreams of returning to San Diego to open a Muchas Gracias, said Sanchez who spent six fearful years living as an illegal immigrant there. Amnesty came with the Immigration Reform and Control Act, signed by President Ronald Reagan in 1986.

By then, Sanchez had been working four years at Alberto's, a San Diego taco stand. He became 40-percent owner in the restaurant and sold his share in 1993, bringing the basic concept and menu north.

"Doing business in these two states has opened doors for me," Sanchez said. He is most proud of his decision to leave California and move to the Pacific Northwest, which was likely nerve wracking at the time. As a Hispanic businessman, "I haven't been discriminated (against) in any way," Sanchez said. "I am very proud the customers have given me support."

Going forward, Steiner said production and business standards will be crucial to the Muchas Gracias chain's success, as proven by long-time chains such as McDonald's. "It's all about keeping on top of those standards. We all know what their (McDonald's) milk shakes taste like," he said. "You've got to have confidence the quality is kept constant."

Franchising can also mean a substantial boost in the parent' company's revenue, Steiner said. "There's quite a bit of profit in selling your name and idea."

Employment expansion
Sanchez, who would not discuss company earnings or percentages, said Muchas Gracias employment has grown from 400 people to 450 employees since 2005. He still owns the chain's four original sites, and while some franchise owners are opening in spaces vacated by larger, sit-down-style restaurants, Sanchez said smaller sites best fit the Muchas Gracias concept.

"Our food is fast food," he said. "That means you can have a full house one moment and it's empty the next."