Taco Cabana
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Taco Cabana is an American
fast casual A fast casual restaurant, found primarily in the United States and Canada, is a restaurant that does not offer full table service, but advertises higher quality food than fast-food restaurants, with fewer frozen or processed ingredients. It is a ...
restaurant chain A chain store or retail chain is a retail outlet in which several locations share a brand, central management and standardized business practices. They have come to dominate many retail markets, dining markets, and service categories in many pa ...
that serves
Tex-Mex Tex-Mex cuisine (derived from the words ''Texas'' and ''Mexico'') is a regional American cuisine that originates from the culinary creations of Tejanos, Tejano people. It has spread from border states such as Texas and others in the Southwestern ...
cuisine. It is a wholly-owned subsidiary of YTC Enterprises LLC, and headquartered in
San Antonio, Texas San Antonio ( ; Spanish for "Anthony of Padua, Saint Anthony") is a city in the U.S. state of Texas and the most populous city in Greater San Antonio. San Antonio is the List of Texas metropolitan areas, third-largest metropolitan area in Texa ...
. Taco Cabana is recognized for its "pink" color scheme and semi-enclosed patio dining areas. Many menu items are handmade daily on-site, in open-display cooking areas.


History


Formation of the restaurant chain

Taco Cabana was founded by Felix Stehling in September 1978, with its first restaurant at the corner of San Pedro and Hildebrand Avenue in Midtown
San Antonio San Antonio ( ; Spanish for " Saint Anthony") is a city in the U.S. state of Texas and the most populous city in Greater San Antonio. San Antonio is the third-largest metropolitan area in Texas and the 24th-largest metropolitan area in the ...
. Stehling purchased a vacant
Dairy Queen International Dairy Queen, Inc. (DQ) is an American multinational fast food chain founded in 1940 and currently headquartered in Bloomington, Minnesota. The first Dairy Queen was owned and operated by Sherb Noble and first opened on June 22, ...
because the family needed additional parking space for their bar across the street, the Crystal Pistol. Stehling decided to open a
taco stand A taco stand or taquería is a food stall, food cart or restaurant that specializes in tacos and other Mexican dishes. The food is typically prepared quickly and tends to be inexpensive. Many various ingredients may be used, and various taco ...
. The open-air design of the existing structure led to the "patio cafe" concept that defined the chain's subsequent locations. Felix Stehling's wife, Billie Jo Stehling, created the décor and interior theme for the restaurant chain. After finding all of the patio furniture stolen following the first night of business, Stehling decided to keep the place open 24 hours. The restaurant focused on fresh foods rather than pre-packaged or pre-prepared foods. The restaurant served beer and margaritas, staying open 24/7 and allowing takeout orders. As the business grew, Stehling asked his two brothers to help expand the chain throughout San Antonio. It soon grew to nine restaurants. In 1986 the brothers left the company after differences in opinion on how to manage the business.Taco Cabana History
Funding Universe
In 1990, Taco Cabana began expansion into neighboring states and continued its growth throughout Texas. Richard Cervera became president of the company in 1990, implementing a plan to franchise the brand.


IPO and imitators

In the late 1980s and early 1990s, the success of Taco Cabana encouraged imitators such as Two Pesos. In January 1987 Taco Cabana filed a suit against Two Pesos for allegedly duplicating Taco Cabana's branding style. Two Pesos lost the case and appealed, and in 1992 the Supreme Court ruled in favor of Taco Cabana and awarded the company $3.7 million in damages. In 1992 Taco Cabana went public with its first stock offering, and ended the year with 17 restaurants. In January 1993 Taco Cabana announced that it was purchasing cash-strapped Two Pesos' restaurant assets in exchange for 940,000 shares of Taco Cabana stock, valued at approximately $22 million. For $30 million, the sale"Ailing restaurant chain to auction Mexican, Italian eateries"
''
Houston Business Journal American City Business Journals, Inc. (ACBJ) is an American newspaper publisher based in Charlotte, North Carolina. ACBJ publishes ''The Business Journals'', which contains local business news for 44 markets in the United States with each market ...
'', Allison Wollam
included all 30 San Antonio restaurants of Two Pesos. Taco Cabana converted most Two Pesos locations into Taco Cabana restaurants, closed others and sold the associated Shortstop Hamburger chain. Taco Cabana sales hit a high in 1994 at $127 million. That year, Stehling resigned as chairman and was succeeded by Richard Cervera. Despite the rise in revenues the company saw while Cervera was in charge, stock prices for Taco Cabana drastically dropped, and Cervera resigned in 1995 and was replaced by Stephen Clark.


Business model change and purchase

In 1995, Cervera resigned as president for a position with the
House of Blues House of Blues is an American chain of live music concert halls and restaurants. It was founded by Isaac Tigrett, the co-founder of Hard Rock Cafe, and Dan Aykroyd, co-star of the 1980 film ''The Blues Brothers (film), The Blues Brothers''. The ...
, remaining chairman and CEO. Stephen Clark was appointed both COO and president. Clark began an evaluation of Taco Cabana's operations with his own management team. He closed several of the company-owned restaurants, restructured some of the franchisee debt, sold assets not related to restaurants, and slowed the expansion. In 1996, Taco Cabana introduced a new type of restaurant to the Dallas-Fort Worth area which was reminiscent of an old Mexican cafe. It featured a rounded front, clay tile roofing, aged wood paneling, and stainless steel counter tops. As customer visits and profits increased, there were plans to extend the designs to new restaurants.


Acquisition by Carrols

By 2000, Taco Cabana spent around $30 million on brand image and while profits had grown, the stock price remained low. Clark began looking at sale options. In 2001 the company became privately held as a wholly owned subsidiary of
Carrols Restaurant Group Carrols Restaurant Group, Inc. is an American franchisee company and is the largest Burger King franchisee in the world; Carrols owns and operates over 1,000+ Burger Kings, and 55 Popeyes restaurants. The company has operated Burger Kings since ...
. After the acquisition, Clark left the company and was succeeded by Mike Biviano. In 2001, it introduced its Mexican grill concept, including made-to-order grilled beef, chicken, pork and shrimp. Throughout 2002, the franchise closed seven stores in the
Phoenix, Arizona Phoenix ( ) is the List of capitals in the United States, capital and List of cities and towns in Arizona#List of cities and towns, most populous city of the U.S. state of Arizona. With over 1.6 million residents at the 2020 census, it is the ...
area, but Taco Cabana proved profitable. In 2003 Taco Cabana began creating a new restaurant prototype with an eight-foot char-grill. That year Taco Cabana opened nine new restaurants. In 2004, it marketed the concept of fresh food and
San Antonio San Antonio ( ; Spanish for " Saint Anthony") is a city in the U.S. state of Texas and the most populous city in Greater San Antonio. San Antonio is the third-largest metropolitan area in Texas and the 24th-largest metropolitan area in the ...
heritage. From 2004 through 2005 Taco Cabana added five more restaurants. The franchise operated 120 restaurants in 2005.


Fiesta Restaurant Group

In 2012, Carrols spun off the Taco Cabana brand and its sister brand Pollo Tropical to establish Fiesta Restaurant Group, Inc. – a public-traded company of its own. As of October 1, 2012, it operated 160 restaurants. In December 2012, Fiesta announced that would be moving the location of its headquarters to Addison, Texas, with plans to grow substantially over the next 2 years. 0 Later that year, the founder, Felix Stehling, died at the age of 87. In January 2016, Fiesta had 162 company-owned and six franchised Taco Cabana restaurants. In February 2016, there were plans to open up to 10 new Taco Cabana restaurants in Texas, adding to the 164 company-owned stores and 6 franchised ones. 1In 2017, the store saw some declines in sales in the second quarter, which Fiesta attributed to less marketing. As of July 2017, it had 176 Taco Cabana stores. 2On January 14, 2020, it was announced that Fiesta Restaurant Group will be closing 19 Texas Taco Cabanas immediately, citing - “eliminate all stores with significant losses". 3


Renovations

In 2012, Taco Cabana began renovating its restaurants across the system. The new design featured decorative metal "estrella" (star) lights hanging from the ceiling, papel picado accents and large street-life photos from Mexico decorating the walls."Taco Cabana Opens in San Antonio with Remodeled Look"
QSR Magazine, May 29, 2012


Acquisition by Yadav

In August 2021, Yadav Enterprises, Inc. finalized a deal to purchase Taco Cabana from Fiesta Restaurant Group, Inc. in a deal reportedly worth $85 million. Fiesta cited the reason for the sale is to focus on the Pollo Tropical brand.


Menu and ordering

In 2002, it temporarily introduced flautas to the menu, which were then made permanent after they proved popular. In 2003, Taco Cabana introduced the "premium bowl," a precursor for salads and bowls on the menu. In April 2004, Taco Cabana introduced the Dozen Breakfast Tacos Box, a promotion that proved popular enough to become permanent. During 2006 through 2010, new products were tested, including the Shrimp Tampico and grilled pupusa. Taco Cabana has introduced a number of temporary items since then, some becoming permanent items, with steak street tacos added in December 2010,
brisket Brisket is a cut of meat from the breast or lower chest of beef or veal. The beef brisket is one of the nine beef primal cuts, though the definition of the cut differs internationally. The brisket muscles include the Pectoralis major, superficial ...
tacos added in April 2011, sopapillas and flan in June 2011, and shrimp in February 2013. In 2012, the company's chefs were experimenting with street food."Taco Cabana research chef develops street foods"
My San Antonio, Jeremy T. Gerlach, July 7, 2012
In 2015, Taco Cabana began using an online mobile ordering app.
Korri Kezar, ''
Dallas Business Journal American City Business Journals, Inc. (ACBJ) is an American newspaper publisher based in Charlotte, North Carolina. ACBJ publishes ''The Business Journals'', which contains local business news for 44 markets in the United States with each market ...
'', September 3, 2015
In January 2018, the chain began offering certain breakfast foods all day."Taco Cabana Introduces All-Day Breakfast Tacos"
Dennis Foley, January 4, 2018, KTSA
The chain continues to showcase a variety of alcoholic beverages, including its signature $2 margaritas."Taco Cabana celebrates Margarita Day with all-day happy hour today"
KHOU, February 22, 2019
In March 2018, the chain brought back Texas smokehouse
brisket Brisket is a cut of meat from the breast or lower chest of beef or veal. The beef brisket is one of the nine beef primal cuts, though the definition of the cut differs internationally. The brisket muscles include the Pectoralis major, superficial ...
. It continues to have taco boxes with a dozen tacos of various sorts, with all breakfast tacos available in the mornings and several breakfast tacos available all-day."Texas smokehouse brisket arrives at Taco Cabana"
KFOX14, March 22, 2018
It sells some of its hot sauces as of 2017."Taco Cabana now selling hot sauces at H-E-B"
Addie Broyles, February 10, 2017, Austin360
In mid-March 2020, all of the restaurants abandoned their in-store dine-ins and began
take-away A take-out (US, Canada, Philippines) or takeaway (UK, Ireland, Commonwealth) is a prepared meal or other food items purchased at a restaurant or fast food outlet with the intent to eat elsewhere. A concept found in many ancient cultures, take ...
service caused by the
COVID-19 pandemic The COVID-19 pandemic (also known as the coronavirus pandemic and COVID pandemic), caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), began with an disease outbreak, outbreak of COVID-19 in Wuhan, China, in December ...
. By June, some allowed outdoor dine-ins, and by early 2021, all Taco Cabana dining rooms and patios were open for guests.


Programs

Taco Cabana has its own app where guests can find locations and order online for delivery or pick-up. TC also has a loyalty rewards program.


Charity work

In Texas, Taco Cabana has been involved with several local military organizations, and the Brand offers a daily 15% discount in-restaurant/drive-thru for those in the military (excluding alcohol and gift card purchases)."Taco Cabana to Present Check to Warrior and Family Support Center Thursday, Jan. 10"
/ref> Over the years, TC has supported many fundraisers and charities across Texas, including the Warrior and Family Support Center (WFSC) at the
Brooke Army Medical Center Brooke Army Medical Center (BAMC) is the United States Army's premier medical institution. Located on Fort Sam Houston, BAMC is a 425-bed academic medical center, and is the Department of Defense's largest facility and only Level 1 trauma center ...
, the Boys and Girls Clubs of Texas, the National Kidney Foundation, Susan G Komen, Eva's Heroes and in 2021 hosted a Halloween Treats For A Cause fundraiser for local market food banks."Wounded Warrior center to benefit from Taco Cabana donation"
''
San Antonio Business Journal American City Business Journals, Inc. (ACBJ) is an American newspaper publisher based in Charlotte, North Carolina. ACBJ publishes ''The Business Journals'', which contains local business news for 44 markets in the United States with each market ...
'', James Aldridge, January 10, 2013
Since 2010 Taco Cabana has hosted Taco Treat fundraisers for the WFSC."Taco Cabana Is Giving Away Free Tacos Today"
Katharine Shilcutt, ''Houstonian Magazine'', October 6, 2015
In addition to the daily 15% discount in-restaurant/drive-thru for military personnel, Taco Cabana also offers a daily 15% discount for senior citizens and students – both with valid IDs.


See also

* '' Two Pesos, Inc. v. Taco Cabana, Inc.'' * Two Pesos * List of Texas companies (T) *
List of Mexican restaurants This is a list of notable Mexican restaurants. Mexican cuisine is primarily a fusion of indigenous Mesoamerican cooking with European, especially Spanish cuisine, Spanish, elements added after the Spanish conquest of the Aztec Empire in the 16th ce ...


References


External links


tacocabana.com
* {{San Antonio Companies based in San Antonio Restaurants in San Antonio Economy of the Southwestern United States Regional restaurant chains in the United States Fast-food chains of the United States Fast-food Mexican restaurants Fast-food franchises Restaurants established in 1978 1978 establishments in Texas 2001 mergers and acquisitions