NOTE: This is not a franchise offering. A franchise offering can be made by us only in a state if we are first registered, excluded, exempted or otherwise qualified to offer franchises in that state, and only if we provide you with an appropriate franchise offering circular. Follow-up or individualized responses to you that involve either affecting or attempting to affect the sale of a franchise will be made only if we are first in compliance with state registration requirements, or are covered by an applicable state exclusion or exemption.

Founded in 1986 in Alameda, California, Chevys is an ultra-casual restaurant concept that offers guests an array of freshly prepared Mexican dishes prepared from scratch using only the freshest ingredients served in a relaxing atmosphere. With a store base of 60 Company-owned and 18 franchised restaurants, Chevys is a national brand spanning 16 states. With twenty years of successful operations, Chevys is the most widely recognized Mexican casual dining brand in Northern California with 90% awareness. Designed to offer a fiesta for the senses, where every experience is fresh, fun and full of flavor, the concept is focused on the execution of its trend-setting Fresh Mex® menu and continuous innovation. Chevys uses a "Fresh Mex®" pledge which underscores the Company's promise that all products are made daily from scratch. Chevys restaurants resemble a Mexican border town café or cantina with a vibrant contemporary décor. The concept's menu offers an extensive variety of Mexican dishes, including traditional enchiladas, burritos and tacos, as well as a variety of combination platters. In addition to more traditional Mexican fare, the menu offers innovative items, including the mesquite grilled skirt steak, fresh fish and shrimp fajitas. Chevys also offers a variety of salads and desserts. The theme of every Chevys dish is freshness, a characteristic underscored by the concept's signature, in house tortilla maker, known as "El Machino®". El Machino® also helps create a fun atmosphere for everyone, including families with children, and enhances the concepts broad appeal. Built on a platform of fresh - fresh ingredients, fresh preparation, fresh ideas and fresh personality - Chevys prepares dishes daily from scratch. This commitment to freshness translates into Chevys signature "Seasonal Fresh Fruit margaritas which change with the seasons. Chevys offers a wide selection of margaritas and an assortment of Mexican and American beers that guests can enjoy either during a meal or at the in-restaurant bar.

Chevys offers a lunch and dinner menu daily along with an extensive list of margaritas, tequilas and beers. Chevys offers a wide variety of Mexican dishes with an emphasis on both traditional and innovative dishes. The fiesta begins at Chevys with signature fire-roasted salsa and fresh, hot chips, complemented by premium gold house margaritas. Classic dishes, such as sizzling fajitas off the mesquite grill, are offered with traditional ingredients, such as chicken and beef, as well as with more contemporary combinations such as shrimp, Portobello mushrooms and asparagus. Chevys also serves a variety of flavorful enchiladas ranging from fresh chicken and tender beef, to crab & shrimp enchiladas and artichoke and Portobello mushroom enchiladas. These contemporary adaptations of tradition Mexican dishes are characteristic of the Chevys menu. At Chevys, dinner averages approximately 70% of sales and lunch 30%. Entrees range in price from $7 to $17, augmented by alcoholic beverage sales representing a sales mix range of 15% to 25%.

Chevys restaurants create a welcoming, ultra casual atmosphere that is inviting to families, couples and singles alike. Chevys is known for its energetic ambiance, with Latin music, fresh, innovative food and refreshing margaritas. Chevys décor is ultra-casual with a Mexican roadhouse Cantina feel, wall posters depicting fresh produce and fish, margaritas and Mexican beers and a variety of fun elements depicting California's Central Valley breadbasket such as side doors of produce trucks and farming tools. A signature item of Chevys restaurant décor, and a differentiating aspect of the concept, is its fresh tortilla maker called "El Machino®". El Machino® is generally featured in the dining room and helps reinforce the Company's commitment to freshness. El Machino® also provide entertainment for children, and enables restaurants guests to watch the tortilla making process. Restaurant sizes can vary from 6,500 to 8,000 square feet with an approximate average of 7,500 square feet serving a seating capacity of 200 guests in the dining room and another 65 people in the cantina, not including patios.

The foundation of Chevys Restaurants is built upon Fresh Mex®, complimented by a festive atmosphere and friendly service. We prepare and serve the freshest made-from-scratch Mexican food wherein each recipe is prepared fresh every single day. In addition to our Fresh Mex® positioning, we pride ourselves on a fun, festive atmosphere and attentive, friendly service. The décor is open, brightly lit and bustling with activity. With broad-based appeal, the crowds found in Chevys Restaurants are typically baby boomers, singles and families.

Since Chevys is built on a made-from-scratch menu and fast service, operations of the units are demanding and rigorous. An absolute knowledge of the particulars of operating a restaurant is essential to the success of a franchisee. As such, we require extensive operational experience, to include current ownership of multiple restaurants. Franchise applicants must have a minimum net worth of at least One Million Dollars and $500,000 liquid assets per unit in the development agreement. Chevys enters multi-unit development agreements to include a specific dominant market area, which is agreed upon by both Chevys and the franchise applicant. Franchisees are then required to develop several restaurants within an agreed upon time frame. Chevys' franchisees must secure their own financing. Chevys will not guarantee or provide any loans on assets purchased or act as sub lessor on any assets which are leased. Each unit in a development agreement will cost approximately $1,720,000 to $3,636,250 to develop without land costs with conversions generally being on the low end and ground up pads on the high end. Development fees range from $35,000 to $50,000 per unit. Royalty fee is 5% of net sales and marketing fee is 0.5% of net sales.

For a Chevys to succeed, the following characteristics are necessary:
  • Resident Population - Each Chevys location should have 10,000 population in a one-mile ring, 100,000 in a three-mile ring and 250,000 in a five-mile ring
  • Daytime Population - There should be 50,000 potential luncheon customers in the three-mile ring
  • Median Household Income - Should be $50,000 plus
  • Traffic Counts - 40,000 cars should pass through the area every day
  • Parking Stalls - A Chevys should have a minimum of 120 stalls available at all times
  • Access and Visibility Access - Should be easy and visibility should be high
  • Building Size - 7,000 - 7,500 square feet indoors and 1,000 - 1,500 square feet of patio
  • Property Size / Frontage Considerations - For a stand alone building 60,000 square feet - always look for "unique" Real Estate
  • Zoning / Existing Use - Restaurant / Liquor License
  • Recommended Generators - Regional Mall / Power Center / Entertainment Center / Office Park

Also enclosed please find Chevys' TELL US ABOUT YOURSELF FORM. If you are interested in further pursuing a Chevys opportunity, please complete and return to:
Chevys Inc. | Attn: Ed Kusch | VP Franchise Operations | 33508 Central Avenue | Union City, CA 94587

A visit to our core market corporate office in Cypress, CA is the recommended first step in the formal introductory process. Should you have any further questions, please feel free to call