Cucos looks to spice up sales with new name, decor

Nation's Restaurant News, June 15, 1992 by Jack Hayes

MACON, Ga - Armed with a new decor package and a new name - Cucos Border Cafe - regional Mexican dinner-house operator Cucos Inc. is hoping to revitalize underperforming units located in economically depressed Southeastern markets.

With a traffic turnaround already beginning to stir in the company's second-unit conversion in New Orleans, Cucos is grossing $25,000 a week at its first Border Cafe rehab here in Macon, according to Vincent Liuzza, president of the Metarie, La.-based chain.

Cucos operates 32 units in nine Southeastern states plus Wisconsin.

"Maybe these remodels are working so well because our old design is worn out," said Liuzza, whose first Cucos opened in 1981. The restaurant - which is located on a site formerly occupied by Sizzler units - incorporated the original carpet, booths, partitions, paneling and tile roof.

To get an accurate measure of the sales impact of the redesign, Cucos made no menu or operating changes.

"When you're into something like this, it's hard to keep from changing the whole concept," Liuzza explained. "But we've always excelled with the food and service. Our weak area has been decor."

Noting that the new interiors contributed to a 25-percent sales jump in the company's third fiscal quarter, Liuzza said he is planning to remake four more units during the next year.

For the 12-week period ended April 5, Cucos' reported third-quarter revenues were $4.1 million, up from $3.4 million over the same period last year. For the 40-week period, revenues were $13.2 million, up from $11.2 million for the same period last year.

The company spent $300,000 to convert and equip the Border Cafe prototype here - a former Pizza Inn - including $125,000 for inside and outside decor and $175,000 in the kitchen.

"We wanted to make it so a visit to Cucos was like a trip to the border," Liuzza said. Construction and marketing directors Kurt Rowe and Glenda Liuzza spent one and a half years researching the new Cucos prototype, he added.

Using vibrant Southwest colors, the casual Border Cafe is a 4,600-square-foot open space. The 130-seat dining room and bar are separated by a waist-high wall, which is built of stacked cases of Mexican beer.

Liuzza believes the redesign adds an extra 20 percent to the value that Cucos customers perceive they get for their $10 average check.

"Where we once had a $10 ambience that added little to the value equation, now we're giving $12 worth and it's really paying off," he pointed out.

Liuzza said no menu or operating changes are accompanying the remake.

The regionally themed "Sonoran border" menu features eight items from the signature "Fresh-Ita" grill, including a half-pound steak or chicken skillet for $8.95.