Torchy’s Tacos is expanding. The Texas-based chain is delicious. Recently, the company sold a $400 million stake in the company to new investors, as well as expanded into three new states.
Austin, Texas is where the company was born in 2006. It’s a popular spot among locals. Everyone knows their logo there, a charming little red devil. The queso, breakfast tacos, and margaritas are filling, fairly priced, and rock-solid in quality. Torchy’s is now looking to go big in the years ahead. “Pairing these four firms with our existing partner, General Atlantic, we feel that we have assembled a premier ownership group that will allow us to accelerate our growth and write the next chapter in Torchy’s history,” said G.J. Hart, who’s the CEO of Torchy’s Tacos.
Despite the effects of COVID-19, Torchy’s Tacos has been doing strong business this year, partly because Texas has less restrictions than most states in the U.S. The business opened 12 new shops in three new states. In total, Torchy’s Tacos now has 83 stores in the United States, including Arkansas, Colorado, Kansas, Louisian, Louisiana, Missouri, Oklahoma, and its home, Texas.
Over the next four years, Torchy’s Tacos will use some of its latest $400 million in investments to open in ten additional states. The CEO predicts 160 restaurants by the end of 2023. Annually, Torchy’s Tacos makes $4 million a location. To put that figure in perspective: Chipotle makes $2.5 million a location. It’s unclear where Torchy’s will expand, exactly, but people will follow.
Torchy’s is popular because of its fresh ingredients. The home-cooked tortillas and ingredients are fresh. The tacos are always big and full but rarely sloppy. The queso is exceptional, too. The company continues to do strong business during the pandemic, which has influenced the future of Torchy’s Tacos. “Torchy’s is focused on rethinking the guest experience in a post-COVID world and how we’ll continue to differentiate by focusing on key operational upgrades to our business that were already in the works,” Hart said. “We are looking at our restaurant footprint and design – whether that means more patio seating, drive-thrus, frictionless takeout as well as upgrading packaging to enhance the takeout experience.”
The taco company is also popular because its staff is usually quite friendly. “Finally, we’ll continue to differentiate ourselves as what we call a ‘craft-casual’ brand through our food quality, creativity and menu innovation,” Hart added, “such as with our popular Taco of the Month feature that our guests look forward to and other quality cues like squeezing fresh limes for our margaritas and making tortillas fresh inside the restaurants.”
Hart continues to look forward to the future of the company, which will be publicly traded next year, according to reports. It’s a taco shop that, without a doubt, will find its customers and fans wherever it expands. People love Torchy’s Tacos, and for good reason. “Our goal is to emerge stronger and more innovative than ever,” Hart concluded. “We look forward to continuing to serve people our ‘damn good’ tacos however they’d like to get them, whether back in our restaurants or through delivery, takeout, and curbside. So far, the response we have received from our guests and our teams has been extremely positive and we are encouraged as we look ahead.”
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