Condado Tacos 41st location, Greenville, NC
By Ed Avis
When people talk about the “culture” of a restaurant, often a negative image emerges – handsy bosses, excessive drinking, low pay for long hours. When Joe Kahn launched Condado Tacos, a casual, full-service taqueria, in 2014, he was aware of that image and did not want his restaurant seen that way.
“I started my company because I hated the culture of how people were treated in a restaurant,” says Kahn, who had earlier co-founded Barrio restaurant in Cleveland. “I mean, there are some companies that are amazing, but it’s just a handful and I said that I want to redefine this industry.”
An emphasis on healthy culture, a commitment to a commissary model of food quality control, and enticing, art-filled restaurants has powered the company’s success. The company, which started in Columbus, Ohio, today has 41 locations spread across the Midwest and Southeast and is opening 10 more this year.
“I kept my promises to my staff and treated them with respect, and a few years later we end up with the number of successful locations we have now,” Kahn says.
Culture Pays Off
One of the first things Kahn did when he launched Condado was set the pay at well above average.
“When I first started my partners asked, ‘Well, what’s the average wage for a line cook?’ And I said, ‘Well, the average wage is $7.85, but we’re not going to pay $7.85. We’re going to pay a livable wage. So we started in the kitchen at $20 or $24 an hour.”
Another way Condado Tacos treats employees well is by eschewing uniforms for the servers.
“I give them a lot of leeway,” Kahn says. “When you come to work, I want you to dress how you want to dress. If you want to come to the restaurant as a ballerina and you can get away with it, then do it!”
A key consequence of the generous pay and overall atmosphere of respect is that employees tend to stick around. Kahn reports that 11 of the employees he originally hired for his company are still there, including several who now occupy executive positions.
Central Kitchen Model
Another factor in Condado’s success is its central kitchen model. Kahn doesn’t like to use the word “commissary” because it implies the food is frozen, and Condado’s is not, but the concept is the same. Nearly 70 percent of the restaurant’s food is prepared in a central kitchen in Columbus, which Kahn calls a “scratch fresh kitchen.” The company’s fleet of a dozen trucks delivers the food to the restaurants less than 15 hours after preparation.
Kahn launched the central kitchen model in 2016 when Condados had only four locations. He says he decided to adopt the concept after he visited one of his locations and discovered that the recipes had been changed. He found a 10,000-square-foot space and asked one of his managers, Dan Stewart, to create the kitchen.
“He developed this system and we ended up with a world-class facility,” Kahn says. “Now different restaurant concepts come out to look at it and say, ‘How are you guys doing this?’”
About four years ago they outgrew the original central kitchen and moved it into a 45,000-square-foot space. Kahn says they estimate they could service 150 Condados locations with that kitchen, but if the company expands into Florida and Texas – which is the long-range plan – they would add additional cental kitchens to serve those markets.
Wall Art
Each Condado Tacos location has unique wall murals.
Customers enjoy Condado Tacos for more than the food – the atmosphere is also part of the experience. Giant murals, many from local artists, cover the walls of each location.
“We made the decision very early on to do this,” Kahn says, explaining that the company hires 10 to 12 artists to create the murals for each new opening. “So we’re supporting the art community out there and we’re paying them very well. We have artwork on our walls that is just phenomenal.”
Kahn estimates that the company has invested over $150,000 in the restaurant artwork over the years.
Growth Plans
Speaking of investments, the company’s growth got a boost in 2020 when private equity funders The Beekman Group bought into Condado Tacos. That process began two years earlier when Kahn met Chris Artinian, a Beekman director who had been an executive at Morton’s Steakhouse and several other restaurants.
“I had a huge affinity for Chris,” Kahn remembers. “I actually told him the first time we met, ‘I think we’re going to end up being partners.’ And it’s true. He’s our partner and the CEO and president.”
Artinian became president and CEO of Condado in April 2021; Kahn’s title now is chief innovative officer.
“We have a really good partnership with The Beekman Group,” Kahn says. “I had heard all the horror stories [about working with private equity], but my experience has been amazing. They are very thoughtful partners, and they believe in us.”
Condado was already growing rapidy when The Beekman Group came along, but their investment has accelerated growth, Kahn says. The company is opening 10 more new locations in 2023 – including in new markets such as St. Louis, Louisville, and Buffalo, New York – so should end the year with 51 locations.
“We’ll open another 12 or 13 locations next year,” he says, adding that that seems to be the company’s sweet spot. “We’ve done that number very successfully, so that’s kind of where we’re living right now. Even though we’re growing bigger and bigger, we don’t want the wheels to come off.”
With a continued focus on culture, quality food and enticing environments, it seems unlikely that Condado Tacos “wheels will come off” anytime soon.
Says Kahn: “We’re really happy with the growth we’re seeing and we can handle it very well.”