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Burritos roll up sales at Phil's Fresh Foods in Boulder

By Joyzelle Davis, Rocky Mountain News (Contact)

Published January 15, 2009 at 12:05 a.m.

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Phil Anson of Phil's Fresh Foods watches his employees wrap fresh burritos in the production line at the company's plant in Boulder.

Photo by Silvia Razgova / Special To The Rocky

Phil Anson of Phil's Fresh Foods watches his employees wrap fresh burritos in the production line at the company's plant in Boulder.

Griselda Fuentes, 23, unwraps fresh tortillas for burritos. Anson started his business in 2002 when he sold handmade burritos out of a cooler to rock climbers in Eldorado Canyon.

Photo by Silvia Razgova / Special To The Rocky

Griselda Fuentes, 23, unwraps fresh tortillas for burritos. Anson started his business in 2002 when he sold handmade burritos out of a cooler to rock climbers in Eldorado Canyon.

Busy hands make burritos at Phil's Fresh Foods. The Boulder-based company sells its burritos in 1,500 mostly natural foods stores nationwide and to two school districts in the Denver area.

Photo by Silvia Razgova / Special To The Rocky

Busy hands make burritos at Phil's Fresh Foods. The Boulder-based company sells its burritos in 1,500 mostly natural foods stores nationwide and to two school districts in the Denver area.

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Not many companies in this economy are coming off a year of 33 percent sales growth, with hopes of more than tripling sales in 2009.

But then not many companies are trying to transform the humble frozen burrito - long known as a cheap, convenient and nutritionally vacuous belly filler - into a made-from-scratch staple of supermarkets and health-conscious school cafeterias alike.

Phil Anson started his namesake Phil's Fresh Foods in 2002, selling his handmade burritos out of a cooler to fellow rock climbers in Eldorado Canyon. Today, the Boulder-based company sells its burritos in 1,500 mostly natural foods stores nationwide and has secured spots on the menus at the Boulder Valley and Jefferson County school districts.

Anson is optimistic that the pullback in consumer spending might even benefit sales of his namesake burritos, which sell for about $2.50 in varieties including chicken red chile and green chile breakfast.

"We feel that we have as good, or an even better opportunity, with our product in an economic downturn," he said.

"It's a meal - not a snack - that represents value. A lot of the more expensive items in (grocery stores) are going to lose market share to value items."

Phil's sales in 2008 soared 33 percent to $1.6 million and are poised for further growth this year as the company plans to expand into mainstream supermarkets and warehouse stores. Phil's is also bolstering its school lunch business, a lucrative channel that's often overlooked by other consumer companies. A single burrito day in the Jefferson County School District can total 38,000 burritos.

The company's growth plans received a boost late last year with a $96,000 loan from Whole Foods' Local Producer Loan Program, which Phil's used to install more manufacturing and quality control equipment and expand into a 5,000-square-foot facility.

For Anson, who until recently financed his company by maxing out his credit cards and soliciting loans from friends and family, the five-year, 5 percent interest loan was a windfall at a time when bank loans are scarce even for thriving businesses.

"It's amazing that it got done in this economy," Anson said. Phil's Fresh Foods is in about 140 Whole Foods stores, accounting for about 7 percent of its business.

Whole Foods' loan program has been around since 2007, granting about $517,000 in loans to eight businesses in the Rocky Mountain region. Other local recipients include Justin's Nut Butter, MouCo Cheese Company and Boulder Ice Cream.

The loan program is intended to help small businesses expand, regardless of whether they are Whole Foods vendors. Applications have spiked since the credit crunch began, said Paul McLean, Whole Foods Market vice president of purchasing in the Rocky Mountain region. McLean is currently considering 30 loan applications, compared with about 10 a year ago.

"In the past three to four months it's become incredibly difficult for small businesses to get credit," McLean said. "We've always had our local programs and we wanted to create a program that has long-lasting benefits other than just buying from local vendors. We want to make sure that they're here seven to 10 years from now."

Backed by the Whole Foods loan, Anson is gearing up for the company's biggest first-ever venture capital financing. The infusion would allow Phil's to penetrate nationwide chain stores, which often charge costly slotting fees, and help the company hit its goal of $6 million in 2009 sales. But Anson is realistic about the market conditions and says that if the financing doesn't come through the company will just grow slower this year.

At the time Anson came up with the idea for Phil's Fresh Foods, the University of Denver graduate had spent years working in restaurants and wanted to strike out on his own. Anson started making burritos in the kitchen of his 1906 Eldorado Canyon cabin, roasting the potatoes and braising the chicken.

Anson, an avid rock climber, then sold his burritos out of a cooler to other climbers and at park-n-Ride stations. He quickly realized that wasn't a route to a steady income, so he asked the Eldorado Canyon Market to carry his burritos. Within a week, he lined up 10 other wholesale clients and dropped plans to go the retail route.

Today, Anson, 30, employs 14 workers who still make everything - aside from the tortillas - from scratch, churning out as many as 15,000 burritos a day.

Comments

  • January 15, 2009

    8:07 a.m.

    Suggest removal

    dpattisonii writes:

    Good for him, but, looking at the pictures, sure doesn't look like there's much filling in those burritos, but a whole lot of tortilla!

  • January 15, 2009

    9:57 a.m.

    Suggest removal

    BMarvin1 writes:

    I LOVE PHIL'S FRESH BURRITOS!!! As a single college guy on a budget, these burritos are the best bang for the buck I can get @ King Sooper's. I love that I don't have to settle for the pasty Little Juan's with ingredients in them that I can't pronounce anymore. Finally, a healthy, filling meal for less than $3.

  • January 15, 2009

    1:07 p.m.

    Suggest removal

    philanson writes:

    You are right that the burritos in the picture look like they don't have as much filling - that is because the burritos being run that day are a kids size burrito sold to local Colorado School Districts. These burritos are 5.5 oz compared to our normal packaged 8 oz burritos and contain more tortilla than normal in order to meet USDA Child Nutrition mandates. Our filling to tortilla ratio is 60% to 40%, which is roughly 20% more filling than tortilla than our competitors fill ratios, so I think you will be more than satisfied if you try one. You can print out a coupon at our website (www.philsfreshfoods.com).
    -Phil
    President & CEO of Phil's Fresh Foods, Inc.

  • January 15, 2009

    2:19 p.m.

    Suggest removal

    iroybal writes:

    My family has been in the restaurant business for years and years. Recently my brother decided to venture out on his own in to the burrito business. The profit margins are great, but never overshadowed by the hard work and dedication. My family is incredibly proud of him and we are anxious to pass on this story. I'm sure this will prove to be inspiring to him. Congratulations to you and your success!

  • January 15, 2009

    3:55 p.m.

    Suggest removal

    lastdance writes:

    "Justin's Nut Butter" ahhh nothin like a batch of fresh nut butter to start your day!

    Facts and data Phil, that's what you provided and that's why I will now go try one of your burrito's. You sold me on em