Torchy's gets equity infusion

torchys tacos logo

Torchy’s Tacos is selling a minority interest in the rapidly expanding fast-casual taco chain to General Atlantic, an investment firm that has previously invested in such concepts as Barcelona Wine Bar and Bartaco.

Simultaneously, Torchy’s said Todd Diener, the former president of Chili’s, will join the taco chain’s board, along with two representatives of General Atlantic.

The amount of General Atlantic’s equity stake was not revealed. Torchy’s described it as a “significant minority investment,” and noted the concept’s five founding partners will remain the other shareholders.  All five now hold executive positions within the chain.

Torchy’s was started 11 years ago as a taco truck in Austin, Texas, by chef Michael Rypka. It has since become a cult favorite, with 46 units in three states.

It is often cited as a leader in an emerging segment of quirky, higher-quality taco concepts, along with such brands as Fuzzy’s Taco Shop, now principally owned by NRD Capital, and Velvet Taco, a holding of Front Burner Restaurants.

General Atlantic specializes in companies with high growth potential. Its earlier investments include stakes in such consumer brands as Airbnb, Uber, BuzzFeed and Vox Media.

Today's top stories

1
Like any kitchen tool, a protective glove is only as good as the skills of the person using it. I know chefs who swear by cut-resistant gloves and others who do not allow them in their kitchens,...
2
After boasting for years that America runs on Dunkin’ , the franchise powerhouse is fundamentally changing to keep up. A menu that reverses years of pushing beyond doughnuts will be in place within...
3
A shutdown of all the Joe’s Crab Shacks in Michigan has raised the tally of units closed by bankrupt operator Ignite Restaurant Group to more than 40, from a base of 113 stores, according to internet...
4
The portion of restaurants’ sales coming from delivery could top 40% by 2020, roughly a sevenfold increase from current levels, according to a recent study from Morgan Stanley. Demand for off-premise...
5
As LSRs battle it out at breakfast, they’re pulling no punches when it comes to innovation. Taco Bell’s Naked Breakfast Taco spring LTO used a fried egg as a “shell” to hold diced potatoes, cheese...
6
The Fast staff took a break from putting this issue to bed for our Restaurant Trends & Directions conference . One of the keynoters was Jonah Berger, author of “Contagious” and “Invisible...
7
Whether seasonal, regional or simply unique, limited-time offers are not only a way to test possible new products, but also a great marketing tool to get consumers excited about a brand and in the...
8
In its U.K. home base, Pret A Manger met customers’ calls for more vegan and vegetarian options in a big way—by launching a veggie-only location in London last year. Its success spawned a second veg-...
9
Transforming a 50-year-old, 50,000-square-foot full-service restaurant into a food hall is neither cheap nor easy. But The Proud Bird’s owner, John Tallichet—whose father built and opened the...
10
The only thing scarier than watching a diplomatic meeting between Dennis Rodman and Kim Jong Un is being sucked into a discussion of what immigrants are doing to or for the United States. In the...