Dollinger index

operations, marketing and product develop-
ment, and development and systems support.
Miksa made a smooth transition to
Rubio’s and had considerable early success.
In a feature article in Chain Leader magazine
(October 1, 2004), she and Ralph discussed
the company’s success and future.

Miksa: [When I was with Taco Bell] “I

always found it interesting to talk to people

who went to Rubio’s,” Miksa recalls. “They

talked about the food in such reverential

tones.” Her verdict when she finally tried

Rubio’s? “I loved it,” she says. “I was so

intrigued by the unique flavors.”

Miksa also recalled her days running a

2,000-person food-service and hospitality

operation on the Alaskan pipeline at Prudhoe

Bay, Alaska: “I had all these people ‘living in

my house,’ ” she says. “I was responsible for

food, maintenance, and operations. The

experience taught me that I could do any-

thing if I put my mind to it,” she adds.

Rubio: “We want to improve sales within

existing restaurants, become more profitable

and establish the company to grow again at a

rapid pace.”

Miksa was right on target in 2004. She
slashed the cost of goods sold by 2 percent
and launched a new menu with bundled

meals at low, nonsale prices. She had to hire

a new CFO and a new VP of marketing, both

of whom she poached from Taco Bell. She

also put the company on the road to prof-

itability. A snapshot of the company’s results

reports this growth (see Exhibit 1). Despite

its growth the company lost $1.9 million on

sales of $125 million in 2003. Exhibit 2,

however, illustrates the problems of fast and

aggressive growth. Even as revenue was

growing, net income became unpredictable,

and stock price fluctuated widely and trend-

ed lower.

To implement her cost cutting, new

Rubio’s Restaurants, Incorporated (C) Troubles and Turmoil 2006 467

Units

2003 systemwide sales

2004 systemwide sales

Unit volume average

Average check

Expansion plans

2003 loss

2004 profit (6 mos.)

151

$124.8

$130.0

$929,000

$7.50-$8.00

5-8 units

$1.90

$1.76

EXHIBIT 1 Snapshot of Rubio’s 2003-2004

(Sales and profits in millions)

SOURCE: Company reports, Chain Leader estimate.

EXHIBIT 2 Problems with Fast and Agressive Growth