Taco Cabana

Last updated

Taco Cabana
Type Subsidiary
IndustryRestaurant
Genre Fast casual
FoundedSeptember 1978;44 years ago (1978-09)
Founder Felix Stehling
Headquarters
San Antonio, Texas
,
United States
Number of locations
142 corporate, 6 franchise
Key people
Ulyses Camacho (COO)
ProductsTex-Mex food and margaritas
Revenue297,470,000 United States dollar (2019)  OOjs UI icon edit-ltr-progressive.svg
Parent Yadav Enterprises, Inc.
Website www.tacocabana.com

Taco Cabana is an American fast casual restaurant chain that serves Tex-Mex cuisine. It is a wholly-owned subsidiary of YTC Enterprises LLC, and headquartered in San Antonio, Texas. As of January 2022, Taco Cabana has 148 locations throughout Texas and New Mexico. [1] Taco Cabana is recognized for its "pink" color scheme and semi-enclosed patio dining areas. Many menu items are handmade daily on-site, in open-display cooking areas.

Contents

History

Formation of the restaurant chain

Taco Cabana was founded by Felix Stehling in September 1978, with its first restaurant at the corner of San Pedro and Hildebrand Avenue in Midtown San Antonio. [2] Stehling purchased a vacant Dairy Queen because the family needed additional parking space for their bar across the street, the Crystal Pistol. Stehling decided to open a taco stand. The open-air design of the existing structure led to the "patio cafe" concept that defined the chain's subsequent locations. Felix Stehling's wife, Billie Jo Stehling, created the décor and interior theme for the restaurant chain. After finding all of the patio furniture stolen following the first night of business, Stehling decided to keep the place open 24 hours. [3]

The restaurant focused on fresh foods rather than pre-packaged or pre-prepared foods. The restaurant served beer and margaritas, staying open 24/7 and allowing takeout orders. As the business grew, Stehling asked his two brothers to help expand the chain throughout San Antonio. It soon grew to nine restaurants. In 1986 the brothers left the company after differences in opinion on how to manage the business. [4]

In 1990, Taco Cabana began expansion into neighboring states and continued its growth throughout Texas. Richard Cervera became president of the company in 1990, implementing a plan to franchise the brand. [4]

IPO and imitators

In the late 1980s and early 1990s, the success of Taco Cabana encouraged imitators such as Two Pesos. In January 1987 Taco Cabana filed a suit against Two Pesos for allegedly duplicating Taco Cabana's branding style. Two Pesos lost the case and appealed, and in 1992 the Supreme Court ruled in favor of Taco Cabana and awarded the company $3.7 million in damages. [4]

In 1992 Taco Cabana went public with its first stock offering, and ended the year with 17 restaurants. [4] In January 1993 Taco Cabana announced that it was purchasing cash-strapped Two Pesos' restaurant assets in exchange for 940,000 shares of Taco Cabana stock, valued at approximately $22 million. [5] For $30 million, the sale [6] included all 30 San Antonio restaurants of Two Pesos. [4] Taco Cabana converted most Two Pesos locations into Taco Cabana restaurants, closed others and sold the associated Shortstop Hamburger chain.

Taco Cabana sales hit a high in 1994 at $127 million. That year, Stehling resigned as chairman and was succeeded by Richard Cervera. Despite the rise in revenues the company saw while Cervera was in charge, stock prices for Taco Cabana drastically dropped, and Cervera resigned in 1995 and was replaced by Stephen Clark. [4]

Business model change and purchase

In 1995, Cervera resigned as president for a position with the House of Blues, [4] remaining chairman and CEO.

Stephen Clark was appointed both COO and president. Clark began an evaluation of Taco Cabana's operations with his own management team. He closed several of the company-owned restaurants, restructured some of the franchisee debt, sold assets not related to restaurants, and slowed the expansion. In 1996, Taco Cabana introduced a new type of restaurant to the Dallas-Fort Worth area which was reminiscent of an old Mexican cafe. It featured a rounded front, clay tile roofing, aged wood paneling, and stainless steel counter tops. As customer visits and profits increased, there were plans to extend the designs to new restaurants. [4]

Acquisition by Carrols

By 2000, Taco Cabana spent around $30 million on brand image and while profits had grown, the stock price remained low. Clark began looking at sale options. In 2001 the company became privately held as a wholly owned subsidiary of Carrols Restaurant Group. After the acquisition, Clark left the company [4] and was succeeded by Mike Biviano.

In 2001, it introduced its Mexican grill concept, including made-to-order grilled beef, chicken, pork and shrimp. Throughout 2002, the franchise closed seven stores in the Phoenix, Arizona area, but Taco Cabana proved profitable. In 2003 Taco Cabana began creating a new restaurant prototype with an eight-foot char-grill. [4] That year Taco Cabana opened nine new restaurants. In 2004, it marketed the concept of fresh food and San Antonio heritage. From 2004 through 2005 Taco Cabana added five more restaurants.

The franchise operated 120 restaurants in 2005. [4]

Fiesta Restaurant Group

In 2012, Carrols spun off the Taco Cabana brand and its sister brand Pollo Tropical to establish Fiesta Restaurant Group, Inc. – a public-traded company of its own. As of October 1, 2012, it operated 160 restaurants. In December 2012, Fiesta announced that would be moving the location of its headquarters to Addison, Texas, with plans to grow substantially over the next 2 years.[10] Later that year, the founder, Felix Stehling, died at the age of 87.[9] In January 2016, Fiesta had 162 company-owned and six franchised Taco Cabana restaurants. In February 2016, there were plans to open up to 10 new Taco Cabana restaurants in Texas, adding to the 164 company-owned stores and 6 franchised ones.[11] In 2017, the store saw some declines in sales in the second quarter, which Fiesta attributed to less marketing. As of July 2017, it had 176 Taco Cabana stores.[12] On January 14, 2020, it was announced that Fiesta Restaurant Group will be closing 19 Texas Taco Cabanas immediately, citing - “eliminate all stores with significant losses".[13]

Renovations

A Taco Cabana location in Dallas, Texas. Taco Cabana Dallas.jpg
A Taco Cabana location in Dallas, Texas.

In 2012, Taco Cabana began renovating its restaurants across the system. The new design featured decorative metal "estrella" (star) lights hanging from the ceiling, papel picado accents and large street-life photos from Mexico decorating the walls. [7]

Acquisition by Yadav

In August 2021, Yadav Enterprises, Inc. finalized a deal to purchase Taco Cabana from Fiesta Restaurant Group, Inc. in a deal reportedly worth $85 million. Fiesta cited the reason for the sale is to focus on the Pollo Tropical brand. [8]

In 2002, it temporarily introduced flautas to the menu, which were then made permanent after they proved popular. In 2003, Taco Cabana introduced the "premium bowl," a precursor for salads and bowls on the menu. In April 2004, Taco Cabana introduced the Dozen Breakfast Tacos Box, a promotion that proved popular enough to become permanent. During 2006 through 2010, new products were tested, including the Shrimp Tampico and grilled pupusa. Taco Cabana has introduced a number of temporary items since then, some becoming permanent items, with steak street tacos added in December 2010, brisket tacos added in April 2011, sopapillas and flan in June 2011, and shrimp in February 2013.[ citation needed ]

In 2012, the company's chefs were experimenting with street food. [9] In 2015, Taco Cabana began using an online mobile ordering app. [10] In January 2018, the chain began offering certain breakfast foods all day. [11] The chain continues to showcase a variety of alcoholic beverages, including its signature $2 margaritas. [12] In March 2018, the chain brought back Texas smokehouse brisket. It continues to have taco boxes with a dozen tacos of various sorts, with all breakfast tacos available in the mornings and several breakfast tacos available all-day. [13] It sells some of its hot sauces as of 2017. [14]

In mid-March 2020, all of the restaurants abandoned their in-store dine-ins and began take-away service caused by the COVID-19 pandemic. By June, some allowed outdoor dine-ins, and by early 2021, all Taco Cabana dining rooms and patios were open for guests.

Programs

Taco Cabana has its own app where guests can find TC locations and order online for delivery or pick-up, including margaritas and other alcoholic beverages. TC also has a loyalty rewards program called MYTC, where guests who sign-up can receive offers and brand news as well. They can also accrue points for future food purchases.

Charity work

In Texas, Taco Cabana has been involved with several local military organizations, and the Brand offers a daily 20% discount in-restaurant/drive-thru for those in the military (excluding alcohol and gift card purchases). [15]

Over the years, TC has supported many fundraisers and charities across Texas, including the Warrior and Family Support Center (WFSC) at the Brooke Army Medical Center, the Boys and Girls Clubs of Texas, the National Kidney Foundation, Susan G Komen, Eva's Heroes and in 2021 hosted a Halloween Treats For A Cause fundraiser for local market food banks. [16] Since 2010 Taco Cabana has hosted Taco Treat fundraisers for the WFSC. [17]

In addition to the daily 20% discount in-restaurant/drive-thru for military personnel, Taco Cabana also offers a daily 20% discount for senior citizens and students – both with valid IDs.

See also

Related Research Articles

<span class="mw-page-title-main">Taco</span> Mexican filled tortilla food

A taco is a traditional Mexican food consisting of a small hand-sized corn- or wheat-based tortilla topped with a filling. The tortilla is then folded around the filling and eaten by hand. A taco can be made with a variety of fillings, including beef, pork, chicken, seafood, beans, vegetables, and cheese, allowing for great versatility and variety. They are often garnished with various condiments, such as salsa, guacamole, or sour cream, and vegetables, such as lettuce, onion, tomatoes, and chiles. Tacos are a common form of antojitos, or Mexican street food, which have spread around the world.

<span class="mw-page-title-main">Taco Bell</span> American fast-food chain

Taco Bell is an American multinational chain of fast food restaurants founded in 1962 by Glen Bell (1923–2010) in Downey, California. Taco Bell is a subsidiary of Yum! Brands, Inc. The restaurants serve a variety of Mexican-inspired foods, including tacos, burritos, quesadillas, nachos, novelty and speciality items, and a variety of "value menu" items. As of 2018, Taco Bell serves over two billion customers each year, at 7,072 restaurants, more than 93 percent of which are owned and operated by independent franchisees and licensees.

<span class="mw-page-title-main">Yum! Brands</span> American multinational fast food corporation

Yum! Brands, Inc., formerly Tricon Global Restaurants, Inc., is an American multinational fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill, except in China, where the brands are operated by a separate company, Yum China. Yum! previously also owned Long John Silver's and A&W Restaurants. The company was created as a spin-off of PepsiCo in 1997.

<span class="mw-page-title-main">Ninfa's</span>

The Original Ninfa's on Navigation is a popular Mexican restaurant located at 2704 Navigation Boulevard in Houston, Texas. The restaurant serves both Tex-Mex and Mexican cuisine. The Original Ninfa's was started by Ninfa Rodríguez Laurenzo, a Mexican-American woman, in a tortilla factory. Ninfa Laurenzo became a full-time restaurateur and the tortilla factory closed. Mama Ninfa is widely credited with popularizing the fajita among Houstonians.

<span class="mw-page-title-main">Del Taco</span> American fast food restaurant chain

Del Taco Restaurants, Inc. is an American fast food restaurant chain which specializes in American-style Mexican cuisine as well as American foods such as burgers, fries, and shakes. Del Taco is led by CEO John D. Cappasola, Jr., and is headquartered in Lake Forest, California. On December 6, 2021, Jack in the Box announced that it was acquiring Del Taco for $12.51 per share. The acquisition was finalized in March 2022. Del Taco has approximately 600 locations in 16 US states.

<span class="mw-page-title-main">Qdoba</span> Restaurant chain

Qdoba is a chain of fast casual restaurants in the United States and Canada serving Mexican-style cuisine. After spending 15 years as a wholly owned subsidiary of Jack in the Box, the company was sold to a consortium of funds led by Apollo Global Management in March 2018. At the time of the sale in 2018, Qdoba had more than 700 locations in 47 states, the District of Columbia, and Canada. In October 2022 Qdoba was acquired by Butterfly Equity.

<span class="mw-page-title-main">Rubio's Coastal Grill</span> Mexican-American fast casual restaurant chain

Rubio's Coastal Grill, formerly known as Rubio's Fresh Mexican Grill and Rubio's Baja Grill is an American fast casual "Fresh Mex" or "New Mex" restaurant chain specializing in Mexican food, with an emphasis on fish tacos. As of 2013, Rubio's operates, licenses, or franchises more than 200 restaurants in Arizona, California, Florida, Colorado, Nevada, and Utah. It is headquartered in Carlsbad, California.

<span class="mw-page-title-main">Pollo Tropical</span> Restaurant chain

Pollo Tropical is a South Florida-based restaurant chain and franchise specializing in food inspired by Latin-Caribbean cuisine. Founded in 1988, the chain has its headquarters in Doral, Florida, It is best known for marinated and grilled chicken and various sides including black beans and rice, mojo roast pork and more.

<span class="mw-page-title-main">Carrols Restaurant Group</span> American franchisee company

Carrols Restaurant Group is an American franchisee company and is the largest Burger King franchisee in the world; Carrols owns and operates over 1,000+ Burger Kings, and 55 Popeyes restaurants. The company has operated Burger Kings since 1976 in locations across 23 U.S. states. The company formerly owned the restaurant chains Pollo Tropical, Taco Cabana, and Carrols. The original Carrols chain ceased operations in the United States in the mid-1970s. The last unaffiliated Carrols Restaurants existed in Finland. The chain was eventually bought out by another Finnish fast-food chain, Hesburger. In 2012, Hesburger announced that the brand Carrols would be discontinued, and on the 29th of May, 2012, the last Carrols was renamed Hesburger.

Two Pesos was a Tex-Mex restaurant chain in the U.S. state of Texas that opened in 1982 in Houston. It was similar to Taco Cabana but Two Pesos never opened in Taco Cabana's home market of San Antonio. The Two Pesos chain was sold to Taco Cabana in 1993 after losing a drawn-out trade dress suit that appeared before the United States Supreme Court.

<span class="mw-page-title-main">Taco Palenque</span>

Taco Palenque is a Mexican cuisine restaurant chain in South Texas and northern Tamaulipas, Mexico. The restaurant is headquartered in Laredo, Texas and was established in 1987. The restaurant's main dishes are the flame-grilled beef or chicken fajita plate, parrillada, pirata taco, panchos drizzled with bean and cheese on top of tortilla chips, homemade desserts, and breakfast tacos Taco Palenque's salad bar has more than 7 different homemade salsas.

Kahala Brands is a wholly owned subsidiary of Canada-based MTY Food Group Inc. of Montreal, Quebec. Based in Scottsdale, Arizona, Kahala is one of North America's largest holding company of franchise fast food restaurant companies. In May 2016, the publicly traded Canadian MTY Food Group announced a friendly takeover deal with the Kahala Brands. MTY agreed to pay about US$300 million to acquire Kahala. The two companies generated near $2 billion in revenues in the previous year. Jeff Smit was chosen to lead the US operations of MTY.

Felix Louis Stehling, Jr. was an American businessman and restaurateur. Stehling and his brother Mike Stehling co-founded Taco Cabana, a fast food restaurant chain specializing in Tex-Mex cuisine, in 1978. Stehling is credited as the inventor of the beanburger, a now common dish in the San Antonio area, consisting of refried beans, Fritos and Cheez Whiz.

<span class="mw-page-title-main">El Taco Tote</span> Restaurant chain

El Taco Tote Real Mexican Grill is an originally Mexico-based, United States fast-food restaurant chain specializing in real Mexican cuisine. Currently headquartered in El Paso, Texas, the first location was created in Cd. Juarez, Chihuahua in 1988. The company has locations in the US states of Arizona, New Mexico, and Texas, and the Mexican states of Chihuahua and Coahuila. There are concentrations in El Paso and Cd. Juarez. The chain currently operates 23 restaurants; including recent additions in Tucson, Arizona and San Antonio, Texas. Their main dishes include tacos, quesadillas and many specialty salsas.

Two Pesos, Inc. v. Taco Cabana, Inc., 505 U.S. 763 (1992), was a United States Supreme Court case where the Court held that Two Pesos, Inc. infringed upon the trademark of Taco Cabana, Inc. by copying the design of their restaurants. Writing for a majority of the court, Justice Byron White concluded that trade dress is inherently distinctive under the Lanham Act and that plaintiffs are not required to prove secondary meaning in suits to protect their trademark. The Court upheld an award of $3.7 million in damages, and Taco Cabana ultimately acquired all of Two Pesos' assets in 1993 for $22 million.

<span class="mw-page-title-main">Taco stand</span> Urban food stall, food cart that specializes in tacos and other Mexican dishes

A taco stand or taquería is a food stall, food cart or restaurant that specializes in tacos and other Mexican dishes. The food is typically prepared quickly and tends to be inexpensive. Many various ingredients may be used, and various taco styles may be served. Taco stands are an integral part of Mexican street food. Tacos became a part of traditional Mexican cuisine in the early 20th century, beginning in Mexico City, as what had been a miner's snack began to be sold on street corners in the city. Shops selling tacos have since proliferated throughout Mexico and other areas with a heavy Mexican culinary and cultural influence, including much of the Western United States and most other larger American cities. More typical taquerías specialize in tacos, as expected, but in some localities it can be used to refer to restaurants specializing in burritos, where tacos themselves are less of a point of emphasis.

<span class="mw-page-title-main">La Salsa</span> Chain of American fast-casual Tex-Mex restaurants

La Salsa is a chain of fast-casual Tex Mex restaurants founded in Los Angeles, California in 1979, headquartered in Scottsdale, Arizona and is owned by Canadian franchisor MTY Food Group. The chain emphasizes fresh ingredients, and each restaurant features a self-serve salsa bar.

<span class="mw-page-title-main">El Pollo Loco (United States)</span> Restaurant chain

El Pollo Loco, Inc., is a restaurant chain based in the United States, specializing in Mexican-style grilled chicken. Restaurant service consists of: dine-in, take-out, with some locations offering drive through options. The company is headquartered in Costa Mesa, California, and operates about 500 company-owned and franchised restaurants in the Southwestern United States.

Fiesta Restaurant Group is a Dallas, Texas-based restaurant chain, primarily owning Pollo Tropical locations in Florida. After spinning off of Carrols Restaurant Group in 2012, it is now traded on NASDAQ as FRGI.

<span class="mw-page-title-main">Taco Bill</span> Australian restaurant chain

Taco Bill is an Australian restaurant chain serving traditional Mexican cuisine. It is the longest founded Mexican franchise in Australia.

References

  1. ↑ "Company Information" . Retrieved December 24, 2014.
  2. ↑ Morton, Neil (December 11, 2012). "Stehling, Taco Cabana founder, dies at 87". San Antonio Express-News . Retrieved January 5, 2013.
  3. ↑ Ayala, Elaine (May 9, 2011). "Stehling created Taco Cabana décor". San Antonio Express-News . Retrieved January 5, 2013.
  4. 1 2 3 4 5 6 7 8 9 10 11 Taco Cabana History, Funding Universe
  5. ↑ Ruggless, Ron (January 25, 1993). "Taco Cabana buys rival Two Pesos". Nation's Restaurant News.
  6. ↑ "Ailing restaurant chain to auction Mexican, Italian eateries", Houston Business Journal , Allison Wollam
  7. ↑ "Taco Cabana Opens in San Antonio with Remodeled Look", QSR Magazine, May 29, 2012
  8. ↑ Santana, Steven (August 18, 2021). "Texas-based Taco Cabana officially under new ownership in $85 million deal". Houston Chronicle . Retrieved September 2, 2021.
  9. ↑ "Taco Cabana research chef develops street foods", My San Antonio, Jeremy T. Gerlach, July 7, 2012
  10. ↑ "Taco Cabana unveils new mobile ordering app", Korri Kezar, Dallas Business Journal , September 3, 2015
  11. ↑ "Taco Cabana Introduces All-Day Breakfast Tacos", Dennis Foley, January 4, 2018, KTSA
  12. ↑ "Taco Cabana celebrates Margarita Day with all-day happy hour today", KHOU, February 22, 2019
  13. ↑ "Texas smokehouse brisket arrives at Taco Cabana", KFOX14, March 22, 2018
  14. ↑ "Taco Cabana now selling hot sauces at H-E-B", Addie Broyles, February 10, 2017, Austin360
  15. ↑ "Taco Cabana to Present Check to Warrior and Family Support Center Thursday, Jan. 10"
  16. ↑ "Wounded Warrior center to benefit from Taco Cabana donation", San Antonio Business Journal , James Aldridge, January 10, 2013
  17. ↑ "Taco Cabana Is Giving Away Free Tacos Today", Katharine Shilcutt, Houstonian Magazine, October 6, 2015
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.