Sandwich-grocery marriage: Mendocino Farms to open inside Whole Foods in O.C.
Oct. 12, 2015 Updated 5:01 p.m.
By Nancy Luna
Whole Foods Market is tapping into the growing fast-casual sandwich sector with a minority investment in Los Angeles-based sandwich sensation, Mendocino Farms.
On Monday, the companies announced a partnership that would allow 11-unit Mendocino Farms to grow its presence in California. Known for its craft sandwiches made with fine dining ingredients, Mendocino Farms plans to have as many as 17 locations in California by the end of 2016.
Terms of the deal were not disclosed. Whole Foods? investment includes testing the addition of a Mendocino Farms inside some of its markets. The first Whole Foods store with a Mendocino Farms will be in Orange County, Mendocino founder Mario Del Pero said. He did not provide a specific location.
The second will likely open inside a Whole Food store in either Los Angeles or the Bay Area.
Founded in Los Angeles in 2005, Mendocino Farms embraces the ?slow food? movement, where sandwiches and salads are made from premium ingredients supplied by local food artisans and eco-conscious growers. Sauces and dressings are scratch made.
The chef-driven sandwiches are playful riffs on classic regional dishes or blue plate specials. A meatloaf sandwich, for example, is made with Wagyu beef. One of its most popular sandwiches, a humble Vietnamese banh mi, is made with Kurobuta pork belly.
Del Pero said Mendocino?s planet-friendly ethos aligns perfectly with Whole Foods, making the partnership a ?win-win? for both companies. He and his wife, Ellen Chen, remain the majority stakeholder in Mendocino Farms. Catterton Partners, a Connecticut private equity firm, also remains a key investor.
Whole Foods is expected to help Mendocino connect with the right sustainable suppliers as the company spends the next two years adding stores in Orange County, Los Angeles, San Diego and Northern California.
?Being mentored by the Whole Foods team is a great opportunity for us as we scale our brand while trying to deepen our purpose, culture, and positive impact on the communities we serve,? said Mendocino co-founder Ellen Chen.
In 2016, Mendocino plans to open five to six sandwich shops. That includes two stores inside Whole Foods Market. In Orange County, Whole Foods operates stores in Tustin, Laguna Beach, Huntington Beach, Newport Beach and Laguna Niguel. New stores are coming to Irvine and Brea.
Mendocino opened its first Orange County sub shop in Costa Mesa in 2014. A second shop opened this year in Irvine, near UC Irvine. A third shop is coming next year to Village at La Floresta in Brea. Whole Foods also is slated to open at the new lifestyle center, which is expected to debut in early 2016.
The Mendocino-Whole Foods deal comes as the restaurant sector has become crowded with ?better for you? sandwich players. The nation?s top sandwich chain generate sales of $22.8 billion, according to the latest figures by market research firm Technomic.
Among the fastest growing chains in the nation: Jersey Mike?s, Pot Belly, Which Wich, Firehouse Subs and Jimmy John?s. Mendocino Farms is part of a group of boutique concepts trying to scale their chef-driven models. Locally, others include The Kroft, Sessions West Coast Deli and The Trough Sandwich Kitchen.
Del Pero said he welcomes the competition.
?All ships rise with high tides. Our guest ends up being the winner because we have to be better, and be more innovative.?
Oct. 12, 2015 Updated 5:01 p.m.
By Nancy Luna
Whole Foods Market is tapping into the growing fast-casual sandwich sector with a minority investment in Los Angeles-based sandwich sensation, Mendocino Farms.
On Monday, the companies announced a partnership that would allow 11-unit Mendocino Farms to grow its presence in California. Known for its craft sandwiches made with fine dining ingredients, Mendocino Farms plans to have as many as 17 locations in California by the end of 2016.
Terms of the deal were not disclosed. Whole Foods? investment includes testing the addition of a Mendocino Farms inside some of its markets. The first Whole Foods store with a Mendocino Farms will be in Orange County, Mendocino founder Mario Del Pero said. He did not provide a specific location.
The second will likely open inside a Whole Food store in either Los Angeles or the Bay Area.
Founded in Los Angeles in 2005, Mendocino Farms embraces the ?slow food? movement, where sandwiches and salads are made from premium ingredients supplied by local food artisans and eco-conscious growers. Sauces and dressings are scratch made.
The chef-driven sandwiches are playful riffs on classic regional dishes or blue plate specials. A meatloaf sandwich, for example, is made with Wagyu beef. One of its most popular sandwiches, a humble Vietnamese banh mi, is made with Kurobuta pork belly.
Del Pero said Mendocino?s planet-friendly ethos aligns perfectly with Whole Foods, making the partnership a ?win-win? for both companies. He and his wife, Ellen Chen, remain the majority stakeholder in Mendocino Farms. Catterton Partners, a Connecticut private equity firm, also remains a key investor.
Whole Foods is expected to help Mendocino connect with the right sustainable suppliers as the company spends the next two years adding stores in Orange County, Los Angeles, San Diego and Northern California.
?Being mentored by the Whole Foods team is a great opportunity for us as we scale our brand while trying to deepen our purpose, culture, and positive impact on the communities we serve,? said Mendocino co-founder Ellen Chen.
In 2016, Mendocino plans to open five to six sandwich shops. That includes two stores inside Whole Foods Market. In Orange County, Whole Foods operates stores in Tustin, Laguna Beach, Huntington Beach, Newport Beach and Laguna Niguel. New stores are coming to Irvine and Brea.
Mendocino opened its first Orange County sub shop in Costa Mesa in 2014. A second shop opened this year in Irvine, near UC Irvine. A third shop is coming next year to Village at La Floresta in Brea. Whole Foods also is slated to open at the new lifestyle center, which is expected to debut in early 2016.
The Mendocino-Whole Foods deal comes as the restaurant sector has become crowded with ?better for you? sandwich players. The nation?s top sandwich chain generate sales of $22.8 billion, according to the latest figures by market research firm Technomic.
Among the fastest growing chains in the nation: Jersey Mike?s, Pot Belly, Which Wich, Firehouse Subs and Jimmy John?s. Mendocino Farms is part of a group of boutique concepts trying to scale their chef-driven models. Locally, others include The Kroft, Sessions West Coast Deli and The Trough Sandwich Kitchen.
Del Pero said he welcomes the competition.
?All ships rise with high tides. Our guest ends up being the winner because we have to be better, and be more innovative.?