fresh-tasting, authentic Mexican food in a
contemporary, clean atmosphere, Rubio’s
targeted a key segment of the market: young,
upscale professionals and students, ages 18 to
49, with a taste for better food. Rubio’s suc-
cess is, therefore, the result of carving out a
special niche in an otherwise crowded fast-
food market.
During its first couple of years of oper-
ation, Rubio’s rarely advertised. Instead,
early efforts were concentrated on ensuring
that the total concept, from the menu to the
decor, was designed to satisfy the customer’s
needs and desires. Yet despite this lack of
advertising, Rubio’s was attracting new and
repeat customers. Rubio’s promoted its busi-
ness in at least three media—print, radio, and
television—that appeal to consumers within
its targeted market. Rubio’s is currently
investigating the idea of poster panels and
billboards as an additional medium to access
its target market. Advertising objectives and
strategies were:
Advertising Objectives:
- Increase “trial” visits to Rubio’s within
target audience, adults 18 to 49. - Encourage repeat visits to Rubio’s.
- Increase overall awareness of Rubio’s.
- Generate awareness of Rubio’s new
location(s).
Advertising Strategies:
- Implement a consistent, chain-wide
media plan in San Diego that will
effectively reach the target market. - Execute local store marketing efforts in
San Diego for grand openings and
locations with special needs. - Implement a localized media and pro-
motions plan in Orange County with
emphasis on the Irvine location. - Administer sales promotion during
heavy advertising periods.
As in the past, Rubio’s used local cable tel-
evision channels and radio stations to pro-
mote its products. Although the commercials
were relatively simple, they were designed to
increase consumer awareness of Rubio’s
products. By tying the commercials to specif-
ic promotions, the effect was to increase reg-
ular foot traffic in Rubio’s facilities as well as
to attract first-time customers unfamiliar
with fish tacos. Current advertising also seeks
to generate awareness not only for Rubio’s
products but for its new locations as well.
Rubio’s also used direct mail to attract
customers. With direct mail, Rubio’s was
able to identify potential customers within a
five-mile radius of a new or existing restau-
rant. Rubio’s believed that if it were able to
persuade potential customers to try its prod-
uct once, they would become repeat cus-
tomers.
In addition to direct promotions, Rubio’s
participated in numerous indirect promo-
tions. Rubio’s sponsored local athletic events
such as the San Diego International
Triathlon. Rubio’s also sent a 15-foot inflat-
able version of Pesky Pescado to local
parades, sporting events, and restaurant
openings. Pesky, Jr., an inflatable human-
sized costume, also makes local appearances.
These marketing efforts represent 2.5 percent
of sales, or $256,000. As Rubio’s expanded
throughout southern California, it continued
to educate its potential customers through
the use of these media and promotions.
Management
Despite its growth from one small restaurant
in 1983 to over 12 locations throughout
southern California, Rubio’s remained a
closely held corporation with ownership split
among the family members. Ralph and Ray
Rubio (Ralph’s father) are the founders and
majority stockholders. Ralph Rubio was act-
ing president of the company. Ralph’s broth-
ers and sister filled the other key positions in
the company: Robert was vice president of
operations, Richard was vice president of
expansion, and Gloria was vice president of
training. The youngest Rubio, Roman,
assisted Gloria at corporate headquarters
with training. Although Rubio’s brought in
outside people to fill management positions,
the family intended to maintain ownership
and control for as long as possible.
As a relatively young, family-owned450 ENTREPRENEURSHIP CASE