El Torito Restaurants Now Serving on Store Shelves

Salsas, salad dressings, enchilada sauces and seasonings bearing the El Torito restaurant name make their debut this week in Ralphs supermarkets and will be shipped to other major chains in Southern California within a month.

The Irvine-based restaurant chain said Monday that it has signed an agreement with Hormel Foods Corp., which will produce, distribute and market 18 El Torito products. If the items sell well, the line could be expanded and distributed outside the region, the companies said.

El Torito joins a growing number of Southern California-based restaurant chains that have begun selling products in grocery stores. They include Marie Callender’s, Wolfgang Puck, Claim Jumper and Taco Bell.

“Restaurant branding has been more successful in Southern California than in any other place,” said Jeffrey A. Grev, group product manager of Minnesota-based Hormel Foods.

Industry observers expect the grocery line to do fairly well since El Torito is teaming up with a company that has managed to obtain shelf space in all major supermarket chains in Southern California and is spending about $4 million on the launch.

Hormel already distributes products from Chi-Chi’s restaurants, a sister company of El Torito that is popular in the Midwest.

“Shelf space is the key to the battle,” said Randall Hiatt, president of Fessel International, an Irvine consulting firm. “If you have someone who knows supermarkets, it’s a much easier game than if you are a restaurant guy. Also, El Torito still has a very strong name in Southern California Mexican food.”

Ronald Paul, president of Technomics, a Chicago-based food industry consulting firm, said restaurant chains come with an instant recognition factor that can sway shoppers who are facing an array of choices on the shelves.

“Restaurant brands have been doing reasonably well because they break through the clutter,” Paul said. “It’s a far easier way to establish consumer recognition than the traditional manufacturer has to go. I think it’s a good move.”

Hormel is paying an undisclosed fee to use El Torito’s name.

The chain’s executive chef participated in the final approval of the grocery products, such as Cilantro Pepita Caesar salad dressing and a sweet corn cake mix.

“Product integrity is vital,” Hiatt said. “El Torito must at this point feel comfortable that the initial products have been able to meet their standards.”

Grev, who is in charge of new products and acquisitions for Hormel, said the company will wait to see how well the products sell before attempting to expand elsewhere. He also said the product line could grow, although he would not say whether frozen entrees are a possibility.

Robert L. Carl, spokesman for El Torito’s parent company, Prandium Inc., said the venture is a “win-win” situation because it increases the restaurant’s name recognition, while the restaurant’s reputation in Southern California gives Hormel an advantage over competitors.

“The name El Torito has been around for 45 years,” Carl said. “There are generations of people who have been coming to our restaurants and are familiar with the brand. When you try to roll out a product into retail, it’s very competitive.

“If you are a Johnny-come-lately, you’re just another jar on the shelf.”