Razzoo’s Cajun Cafe used to cook all of its food from scratch, including Cajun staples like etouffee and Creole sauce. But over the years, it strayed away from that practice in favor of a menu that was easier to execute.
When M Crowd Restaurant Group acquired Razzoo’s out of bankruptcy late last year, a return to scratch cooking was one of its top priorities.
“Being authentic and being scratch and feeling like you’re in Louisiana is really important to me,” said Edgar Guevara, CEO of M Crowd, which also owns the 25-unit Mi Cocina Mexican chain and other full-service restaurants.
M Crowd acquired 11 remaining Razzoo's locations in December for $18.8 million. The two companies have a lot in common. Both are based in Dallas and are turning 35 this year. Both strive to create a local feel in their restaurants. And though Razzoo’s is the group’s lone Cajun concept, several members of the company, including Guevara, have experience with the cuisine.
One of his first steps as Razzoo’s new leader was to get reacquainted with Cajun cooking. Early on, he and his team traveled to Lafayette, Louisiana, to visit small restaurants along the bayou, where Cajun cuisine was born.
“We really got a sense of how different the flavor profiles are as you move through Louisiana, through those little towns,” Guevara said. It was a first step toward recovering parts of Razzoo’s DNA that had been lost over the years. “It got us grounded.”
The M Crowd team also leaned on some of the chain’s long-tenured employees for institutional knowledge. Guevara even tracked down Razzoo’s former operations chief to get his input.
“I’m trying to get deep into the roots of this thing, to try to understand how it started, and why it started, and where we take this thing,” Guevara said.
That process is ongoing. For instance, Guevara is still hoping to connect with Razzoo’s founder, Mike Leatherwood, who is no doubt a rich source of information on the brand.
Still, the initial soul-searching has already resulted in some big changes at Razzoo’s, particularly on the menu. Crawfish, a signature item, are now delivered fresh daily, as opposed to every second or third day. Fresh veggies are back, along with fried okra and peel-and-eat shrimp. The brand has improved the way it prepares catfish and developed a new chicken sandwich using its proprietary Fire Mouth sauce. And customers will once again find a selection of hot sauces on the table, an offering that disappeared during COVID.
The bar menu also got a refresh. Previously, it featured 38 drinks, “and they all tasted similar,” Guevara said, with a sweet and fruity profile. M Crowd pared that back to 18 and added more variety, like martinis. It also upgraded its Hurrycane, a take on the New Orleans classic, with fresh juice. Customers can combine it with a margarita to create what Razzoo’s calls a Swamp Thang.
“We still sell a lot of margaritas, but we’ve seen people go back to Hurrycanes and Swamp Thangs because they’re so good,” Guevara said.
The investments in quality are having an impact for Razzoo’s. When M Crowd took over, traffic was down 25% year over year. It has been able to close the gap to 10% over the past six months.
“It’s been fun to see people really react positively to the changes we’ve made,” Guevara said.
That has included both customers and employees, especially holdovers from Razzoo’s scratch-cooking days. When the chain rolled out some of its new recipes to a location in Arlington, a 20-year Razzoo’s veteran told the CEO, “I feel like I’m back to doing my job.”
“The pride level went up,” Guevara said.
Despite the greater complexity and higher-quality ingredients, Razzoo’s is not planning to raise prices any time soon. The chain had already taken a lot of price over the past few years, which was contributing to its traffic troubles. It had also leaned into value and discounting, with a 2 for $22 offer and a low-priced Real Deal menu.
Under M Crowd, Razzoo’s has moved away from that, instead banking on better quality and service to grow traffic.
That doesn’t mean customers won’t find value at Razzoo’s anymore. It kept the Real Deal menu but shifted it to lunchtime, and it is lowering the price of certain items to help promote new and improved recipes. Shrimp and catfish baskets are now $15.99, down from $17.99 before, for instance.
“We’re gonna use discounting to introduce old, familiar items and get people to try them again,” Guevara said.
When Razzoo’s filed for bankruptcy in October, it cited competition from larger brands like Chili’s and Applebee’s as a factor. Those brands have invested heavily in value to bring in price-conscious consumers in recent years.
But Guevara said one of the biggest mistakes Razzoo’s can make is to try to beat those larger, national brands at their own game.
“My belief is, let’s let them do what they do, because I think there’s guests out there who fall in love with the brand for the brand,” he said.
Over time, he believes that M Crowd’s investments in Razzoo’s unique food, service and ambiance will help the brand stand out.
Razzoo’s is down to just 11 locations, from 20 pre-bankruptcy. That’s the smallest it has been since the mid-2000s. But its new owners do not expect it to stay that way. “We didn’t buy it to keep 11 restaurants,” Guevara said.
The company believes there is room for more Razzoo’s in the Dallas-Fort Worth market. By the middle of next year, it hopes to get back to unit growth again, at a pace of one to two new stores a year.
At the same time, Guevara said it’s important to maintain Razzoo’s local feel. Each location is different, a reflection of the surrounding neighborhood. Some are more bar-centric, while others sell more crawfish. To keep a finger on the pulse, Razzoo’s area directors are responsible for just three or four stores, fewer than the typical six or 10. That allows them to spend more time in each location.
“Trying to compete with the big guys in the chain game is just crazy,” Guevara said. “So let’s act local. Let’s be smaller. I have this saying that I tell the team here in the office all the time: ‘The bigger we get, the smaller we have to think.’”
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