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.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Workforce

Restaurants have a hot opportunity to improve their reputation as employers

Reality Check: New mandates for protecting workers from dangerous on-the-job heat are about to be dropped on restaurants and other employers. The industry could greatly help its labor plight by acting first.

Financing

Some McDonald's customers are doubling up on the discounts

The Bottom Line: In some markets, customers can get the fast-food chain's $5 value meal for $4. The situation illustrates a key rule in the restaurant business: Customers are savvy and will find loopholes.

Financing

Ignore the Red Lobster problem. Sale-leasebacks are not all that bad

The decade-old sale-leaseback at the seafood chain has raised questions about the practice. But experts say it remains a legitimate financing option for operators when done correctly.

Trending

More from our partners