A Birria Boom Meets Fast-Casual Ambition (Image Credits: Images.fastcompany.com)
San Diego – A modest taco operation specializing in birria has secured franchise commitments for more than 200 locations nationwide, thanks to the same investors who turned Dave’s Hot Chicken into a breakout star.
A Birria Boom Meets Fast-Casual Ambition
The surge in birria’s popularity, fueled by social media, positioned Mike’s Red Tacos perfectly for growth. This slow-cooked Mexican stew, traditionally featuring beef, lamb, or goat, now graces menus at major chains like Taco Bell and Del Taco.
Mike Touma launched the brand as a food truck in 2021 before opening its first permanent spot in 2022. Today, with just two outlets, it boasts a rapidly expanding social media presence. Investors spotted its potential early, viewing it as a fast-casual contender akin to Chipotle rather than quick-service rivals.
Investors with a Track Record Step In
Bill Phelps, executive chairman of Dave’s Hot Chicken and cofounder of Wetzel’s Pretzels, along with early-stage backer Andrew Feghali, provided crucial support. Phelps, also a founding investor in Blaze Pizza, rarely encounters concepts that excite him.
“I love entrepreneur-started businesses, and guys that have figured things out,” Phelps told Fast Company. “The product is just amazing. It’s so good, it’s like a breakthrough within a category.” He first visited a location about a year ago and committed immediately, drawn to its quality and scalability.
Mapping Out Nationwide Expansion
The franchise agreements target 25 markets, spanning the country from coast to coast. New sites will appear in cities such as Seattle, Phoenix, Las Vegas, Austin, Dallas, Chicago, Miami, and Boston, with additional growth in Southern California.
The initial rollout begins close to home: a new spot in San Diego opens in March, followed by a corporate-operated location in Pasadena this spring. Vincent Montanelli, a veteran from Wetzel’s Pretzels, now serves as president to guide operations.
Scaling Success Demands Discipline
Phelps emphasized the challenges ahead. “It’s been once every five years we see something that looks really great and then we go for it,” he noted. The team offers proven franchise expertise to help founders like Touma expand without losing core appeal.
Success requires relentless effort, Phelps warned. “You need to leave your ego at the door. There’s a lot of competition. A lot of work to do. You need to work your ass off.” Their model prioritizes fair deals that benefit both creators and investors.
Key Takeaways
- Mike’s Red Tacos leverages birria’s viral appeal for fast-casual differentiation.
- Over 200 franchise locations planned across 25 U.S. markets.
- Proven leaders from Dave’s Hot Chicken and Wetzel’s Pretzels drive the vision.
Mike’s Red Tacos stands at a pivotal moment, blending authentic flavors with ambitious scaling to challenge Mexican fast-casual giants. As birria continues to captivate diners, this venture could redefine the category. What do you think its chances are for Chipotle-scale success? Share in the comments.
