What's Happening?
Investors behind Dave's Hot Chicken, Bill Phelps and Andrew Feghali, are venturing into the birria food trend by investing in Mike's Red Tacos, a San Diego-based chain. The chain, known for its birria tacos, plans to expand nationally with over 200 new locations. This move follows a significant investment from Phelps and Feghali, who see potential in birria's growing popularity in the U.S. Birria, a traditional Mexican dish, has seen a rise in menu appearances across the country. The expansion will be supported by franchising deals with multi-unit operators, aiming to capitalize on birria's broad appeal across different demographics.
Why It's Important?
The expansion of Mike's Red Tacos represents a strategic move to tap into the growing popularity of birria in the U.S.
food market. This trend reflects a broader consumer interest in diverse and authentic culinary experiences. The investment by seasoned restaurateurs like Phelps and Feghali suggests confidence in birria's potential to become a staple in the fast-casual dining sector. This expansion could influence other restaurant chains to explore similar trends, potentially reshaping the competitive landscape of the U.S. restaurant industry.
What's Next?
Mike's Red Tacos plans to open new locations across the U.S., with some expected to launch by the end of the year. The chain will likely face competition from established Mexican-inspired fast-food brands, but its focus on birria could differentiate it in the market. The success of this expansion could lead to further investments in similar culinary trends, encouraging innovation and diversity in the fast-casual dining space. The chain's growth strategy will be closely watched by industry analysts and competitors.
