In particular, said Fiesta Restaurant Group, the board will re-evaluate a previously announced plan to spin off Taco Cabana as a freestanding business. It noted that the relatively low tax base of the fast-casual chain makes it a good candidate for a divestiture, but expressed newfound reservations, citing changes in the marketplace.
Valuations of restaurant companies have been declining because of a sudden drop in traffic and sales.
In addition to his corporate duties, Taft has functioned as CEO and president of both Taco Cabana and its Caribbean sister, Pollo Tropical. Both brands specialize in fast food with a Latin flare.
He will also relinquish his seat on Fiesta’s board when he retires, the company noted.
Taft has a lengthy resume of chain-restaurant jobs, including top posts at Pizza Inn, Whataburger, Grandy’s and Souper Salad. He started his career as a pot washer at Bern’s Steak House, the landmark fine-dining restaurant in Tampa, Fla.
He came out of his first retirement to assume responsibility for Taco Cabana and Pollo Tropical as they were about to be spun off from Carrols Corp., the largest franchisee of Burger King.