Xperience Restaurant Group (XRG) Company Profile

Background

Xperience Restaurant Group (XRG) is a leading operator of casual and fine dining Mexican restaurants in the United States. With a history spanning over 65 years, XRG has been instrumental in transforming the U.S. Mexican dining landscape through innovative concepts such as the origination of Taco Tuesday, tableside presentations, and pioneering cocktail programs. The company's mission is to provide unique dining experiences, exceptional food, and unparalleled beverage offerings. XRG currently operates over 60 locations, employs more than 4,000 team members, and serves over 10 million guests annually.

Key Strategic Focus

XRG's strategic focus centers on expanding its portfolio of iconic Mexican restaurant brands while maintaining a commitment to culinary innovation and exceptional guest experiences. The company specializes in offering authentic Mexican cuisine across various dining segments, including casual, polished casual, and fine dining. Key technologies utilized include advanced kitchen equipment for scratch cooking and proprietary beverage programs that highlight agave spirits. XRG primarily targets the U.S. market, with a significant presence in California and plans for expansion into new markets such as Boston and Las Vegas.

Financials and Funding

XRG is a portfolio company of Z Capital Partners, the private equity arm of Z Capital Group. In 2018, Z Capital acquired Real Mex Restaurants out of bankruptcy for $47 million and rebranded it as Xperience Restaurant Group. The company has since focused on revitalizing its existing brands and pursuing strategic acquisitions to fuel growth.

Pipeline Development

XRG has been actively expanding its portfolio through strategic acquisitions and new concept development. In 2019, the company acquired the SOL Mexican Cocina and Solita Tacos & Margaritas brands, adding six units to its portfolio. In 2020, XRG acquired two Chevys Fresh Mex franchise locations in the greater St. Louis area, bringing the total number of corporate-owned Chevys units to 14. In 2023, the company introduced a new concept, Cal Mex Cantina, an elevated gastropub with a fusion of Mexican and Californian flair, located in Redondo Beach, California.

Technological Platform and Innovation

XRG distinguishes itself through its commitment to culinary innovation and the use of proprietary technologies. The company's brands emphasize scratch cooking, utilizing traditional Mexican cooking techniques and tools to create authentic dishes. XRG has also developed pioneering cocktail programs that highlight agave spirits, offering a wide array of Margaritas and other signature cocktails. The company's focus on freshness and quality extends to its beverage offerings, with each restaurant brand curating unique drink menus that complement their culinary offerings.

Leadership Team

Mike Johnson, Chief Executive Officer: Appointed in April 2024, Mr. Johnson brings over 20 years of experience in the restaurant industry. He joined XRG in 2018 and served as Chief Operating Officer since 2022, where he built leadership teams and implemented technology to enhance guest experiences. Prior to XRG, he held leadership roles at Real Mex Restaurants, California Fish Grill, and Elephant Bar Restaurants.

RJ Thomas, President: Appointed in December 2024, Mr. Thomas has over three decades of leadership experience in the restaurant industry. He previously served as President and Chief Operating Officer of Uncle Julio’s Corporation and King’s Seafood Company, where he led operations and spearheaded the launch of new concepts.

Leadership Changes

Mike Johnson: Promoted from Chief Operating Officer to Chief Executive Officer in April 2024.

RJ Thomas: Joined XRG as President in December 2024.

Competitor Profile

Market Insights and Dynamics

The U.S. Mexican dining segment is a competitive and growing market, with consumers increasingly seeking authentic and innovative dining experiences. The market has seen a surge in demand for fresh, high-quality ingredients and unique beverage offerings, particularly those featuring agave spirits. XRG's focus on authenticity and innovation positions it well within this dynamic landscape.

Competitor Analysis

Key competitors in the Mexican dining segment include:

On The Border Mexican Grill & Cantina: Offers a variety of Tex-Mex dishes and is known for its casual dining atmosphere.

Chuy's: Provides a unique take on Tex-Mex cuisine with a focus on fresh ingredients and eclectic décor.

Moe's Southwest Grill: A fast-casual chain specializing in customizable Southwestern fare.

These competitors focus on delivering Mexican-inspired cuisine with varying degrees of authenticity and innovation.

Strategic Collaborations and Partnerships

XRG has engaged in strategic acquisitions to strengthen its market position and expand its capabilities. The acquisition of SOL Mexican Cocina and Solita Tacos & Margaritas in 2019 added six units to its portfolio, enhancing its presence in the fine dining segment. In 2020, the acquisition of two Chevys Fresh Mex franchise locations expanded its corporate-owned units, reinforcing its position in the casual dining segment.