Good Times Restaurants Inc. has announced a limited-time menu of Hatch Valley New Mexico green Chile items and an expanded test of its Hatch Valley breakfast burritos.
The limited-time menu consists of green Chile cheese fries, a green Chile slider and a green Chile burger or chicken sandwich with green Chile chutney and whole roasted green Chiles.
"Over the course of the last year, we tested every authentic green Chile recipe in the market and developed an authentic roasted green Chile flavor that has both a wide appeal but that has the kick of a true green Chile found at most of the smaller genuine Mexican restaurants. The limited time offer menu coincides with the Hatch Valley Green Chile season and we plan on running it through October," said Boyd Hoback, president and CEO.
The chain has expanded its test of $2 Hatch Valley New Mexico Green Chile Breakfast Burritos to four restaurants in anticipation of a system-wide rollout later this year. The breakfast menu consists of four green Chile burritos available with egg, potato & cheese and a choice of chorizo, sausage or bacon. It also includes Daz Bog coffee and fresh orange juice. Daz Bog is a premium Colorado coffee available in retail stores and restaurants throughout the state.
"We did not want to come to market with another breakfast menu that is available at every other quick-service restaurant but wanted to enter the daypart with a truly unique proposition that is consistent with our brand of providing innovative, authentic, regional flavors," Hoback added.
The company's initial goal is to generate incremental sales of 6 percent, which was achieved during the test. The long-term goal is to generate more than 10 percent of incremental sales from the breakfast daypart. Hoback estimates that at 8 percent, the menu will generate an additional $1 million in profit for the system, with a low breakeven sales hurdle.
"Our product and operations team have done a fantastic job of developing a simple menu of four authentic green Chile burritos, all available at $2 each with a very profitable labor model. It's a great value for the customer and comparable products are only available at the smaller Mexican restaurants," Hoback said.
Good Times also announced that it has received shareholder approval for the closing scheduled this week of the previously announced $2 million convertible preferred stock transaction with Small Island Investments Ltd. Following the closing, the company's net equity will exceed the required minimum of $2.5 million for continued listing on the Nasdaq Capital Market.
The company intends to use the proceeds of the transaction to repay all remaining bank debt and to increase its working capital position as it continues to evaluate acquisition and growth opportunities.