AUSTIN (KXAN) — As of Wednesday, Taco Cabana is no longer a Texas-based company.
Fiesta Restaurant Group Inc. announced in a news release Thursday, they’ll part ways with their 148 Taco Cabana franchises for a whopping $85 million — that deal to Yadav Enterprises Inc., which also owns many of the Jack in the Box, Denny’s, and TGI Friday’s franchises. They’re based in California.
“Anil Yadav, the CEO of Yadav Enterprises, has an impressive entrepreneurial background and is a highly-respected restaurant operator,” Fiesta President and Chief Executive Officer Richard Stockinger said in that release. “We are confident he will be an effective steward of the Taco Cabana brand for the long-term.”
FRGI also said the move will allow them to focus on Pollo Tropical, a Caribbean-style fast food restaurant.
Last year, Taco Cabana generated $239.4 million in total revenue, according to Fiesta. As of yesterday, there were 142 Taco Cabana restaurants owned by that group in Texas, and six in New Mexico.
Signs of trouble
In January of 2020, FRGI announced it was closing 19 of it’s Taco Cabana franchises. That included a Taco Cabana location at 8620 Burnet Road in Austin.
The company said back in 2020 that the closures came after a restaurant-wide improvement plan showed those 19 locations were underperforming.
According to the press release, the 19 restaurants contributed approximately $24.5 million in restaurant sales and an estimated $4.2 million in restaurant-level pre-tax operating losses, including $2.0 million in depreciation expense, for the twelve months ended December 29, 2019.