The future goals of Cancun Grille are to expand our concept and brand through both Company-owned and franchised restaurant development.
The Cancun Grille expansion strategy will focus on penetrating established markets, continuing to develop markets recently entered and entering select new markets with either company-owned restaurants, franchised restaurants or a combination of both. Prior to entering a new area, Cancun Grille will do a thorough analysis of the proposed market. It will then select site locations and allow franchisee to open restaurants only in markets with adequate population density to support a sufficient number of restaurants.
This clustering approach will enable Cancun Grille to reduce costs associated with regional supervision of restaurant operations and will provide the opportunity to spread the marketing costs over a greater number of restaurants. The Company believes that this approach will potentially reduce any problems involved with opening new restaurants given that we will better understand the competitive arena, consumer tastes, demographics and discretionary spending patterns in these markets. In addition, it enhances our ability to hire qualified employees.
Cancun Grille believes that trade site area and site selection strategy are critical to the success of its business operations, and therefore, it intends to devote substantial efforts to evaluating each potential site at the highest levels within our organization.
We plan to conduct extensive research to better identify our customer base and utilize this research in selecting specific sites. As part of our typical site selection process, we intend to develop a proprietary site forecasting model that will allow us to profile our target customer. We can then search for areas within our target markets that have a high concentration of such customers, focusing on such factors as spending patterns, income and education levels, self-image, consumption patterns and various other lifestyle factors.