The el Restaurante Top 50 Mexican Multi-Unit Restaurants
The el Restaurante 2024 Top 50 Mexican Multi-Unit Restaurants
Haz clic aquí para leer esto en español
Editor’s Note: This is our 11th annual Mexican Multi-Unit Report. We track the performance and growth of Mexican multi-units by reading financial reports (for the publicly owned companies), reading press releases and trade articles, and counting unit totals on their websites. The data in our 50 Largest Mexican Multi-Units chart below is the best to our knowledge as of mid January, but chains add and subtract locations constantly.
By Ed Avis
The performance of multi-unit Mexican restaurants in 2023 varied greatly. If we look at performance based on growth in the number of units, the two biggest – Taco Bell and Chipotle – did quite well, as they added a significant number of new locations. And handful of mid-size chains added a decent number of locations. But most of the rest added few if any locations, and a handful shrunk during the year.
Growth at the Top
The behemoth Taco Bell, a division of Yum! Brands, added 621 units in 2023, according to our calculations. That’s an 8 percent increase. Chipotle added 300 units, a 9.6 percent jump.
But growth in unit count is not the only way to measure success, of course. Taco Bell’s sales grew 11 percent in the third quarter of 2023, compared to the same period a year earlier, and same-store sales grew 8 percent. Chipotle reported remarkably similar Q3 results – total revenue increased 11.3 percent and same-store sales climbed 5 percent. Clearly those giant brands are succeeding financially.
In other news for those biggies, Sean Tresvant was promoted from global chief brand and strategy officer to CEO of Taco Bell. “Sean is laser focused on keeping our powerhouse Taco Bell brand at the leading edge of culture and redefining innovation in the industry,” said Yum! Brands CEO David Gibbs.
Chipotle stretched its concept with a new brand, Farmesa. A press release called Farmesa “a fresh, bold concept featuring delicious proteins, greens, grains and vegetables that are inspired by Chipotle's Food with Integrity standards.” Brian Niccol, Chipotle’s chairman and CEO, said Farmesa, which launched with a location in Santa Monica, California, “uses classic culinary techniques with flavorful ingredients in a fast casual setting that we're excited to test and learn on before we determine a broader rollout strategy.”
Growth in the Middle
Judging the success of the mid-size multi-units is more difficult because they’re usually not public companies. But it’s fair to say that if a multi-unit adds more locations than it closes during a year, it’s probably doing something right. Five mid-size Mexican multi-units -- Torchy’s Tacos, Bubbakoo’s Burritos, Condado Tacos , Taco Palenque and Fajita Pete’s – grew their unit count by more than 10 percent in 2023.
Grand opening of Torchy's Tacos in Dublin, Ohio
Torchy’s added 10 units, an increase of 11.4 percent, to 124 units. The company, based in Austin and tied for 15th place on the el Restaurante Mexican Multi-Unit Top 50, is known for its irreverent attitude. Among the company’s promotions in 2023 was a customer contest to create a new name for a Torchy’s taco, the “Name Your Own Damn Taco” contest. The winner was announced in June: “While a few of you had similar ideas and some of you may need to wash your mouths out with soap, we were so grateful for the thousands of fans who poured their hearts and souls into your entries. Ultimately, the choice came down to one winning entry by Cadie Kelly, a Torchy’s fan based in Tyler, Texas. Her choice was simply an offer we couldn’t refuse…Introducing THE HOGFATHER.” The winning taco features green chile pork layered with Teriyaki sauce, corn relish, bacon, crispy onions, and topped with cilantro, cotija, and Diablo Sauce, wrapped in a house-made flour tortilla.
Bubbakoo’s added 15 units to reach 116 units, a 14.9 percent increase. This fast-growing company known for customizable burritos, which is number 17 on our list, opened locations in Cincinnati; New Paltz, NY; and Cape Coral, FL, among other geographies. The company was founded only 16 years ago and already has spread to 15 states. In 2024 the company aleady has opened four more locations, including its first Michigan location in Mt. Pleasant and a location in Jonesboro, Georgia.
To the west of Bubbakoo’s home turf, Condado Tacos is growing rapidly in the Midwest. Condado jumped from 38th on our Top 50 list in 2023 to 31st in 2024. The company, launched in Columbus, Ohio, in 2014, already has 49 units in eight states. They added 10 units in 2023, a 25.6 percent jump. Among the company’s achievements during the year was being named one of Inc. magazine’s “Fastest-Growing Private Companies in America.” President and CEO Chris Artinian says the company plans to open 12 new restaurants per year going forward.
Taco Palenque, based in Laredo, Texas, added 8 units in 2023 for a new total of 41. That’s a 24.2 percent increase and puts them at 38th on our Top 50 list. The company’s restaurants are all located in south Texas, but the founder, Juan Francisco Ochoa Sr., told Texas Monthly magazine in March 2023 that he envisions expanding nationwide. Ochoa knows a thing or two about expansion – in 1975 he founded El Pollo Loco, which now has 492 locations and is 6th on the Top 50 list.
Fajita Pete’s celebrated its 15th anniversary in 2023 and opened its 32nd location, a jump of 5 from the year before (an 18.5 percent increase). The company, which is tied for 43rd on the el Restaurante Top 50 list, reports that it has 70 more units in the development pipeline, including planned openings in Chicago, Pittsburgh, Plano, Wichita Falls, and Puerto Rico.
Another mid-size chain, Chuy’s, which is a public company, did not grow quite as much as the five mentioned above, but it did reach the magic 100-location mark. The 100th location, in Harker Heights, Texas, opened in the third quarter. “We are pleased with the performance of our recent openings and remain excited about the organic growth opportunities ahead for the brand,” said Steve Hislop, president and CEO of Chuy’s Holdings, Inc.
Fuzzy’s Sold, Taco Del Mar Tries Dual Concept Stores
Big growth wasn’t the only news happening at Mexican multi-units in 2023.
Fuzzy’s Taco Shop, which sits at 12th on the Top 50 list with 138 units, was acquired by Dine Brands early in the year. Dine Brands also owns Applebee’s Neighborhood Grill and IHOP. The press release about the acquisition states that Fuzzy’s hopes to double its size in coming years. “I’m incredibly proud of the work the Fuzzy’s team and franchisees have accomplished over the past few years, which has enabled us to enter this new chapter of growth together with Dine Brands,” said Paul Damico, CEO of Fuzzy’s Taco Shop, in the release. “With Dine Brands’ substantial industry resources, we will be well positioned to build upon our proven successes and accelerate our growth.”
Taco Del Mar, a 66-unit chain owned by REGO Restaurant Group, pioneered a dual-concept idea by opening locations that combine a Taco Del Mar and a Quizno’s (also owned by REGO). The combo shops are located inside Florida convenience stores owned by Sunshine Gasoline Distributors. The first opened in February 2023 and plans call for at least 13 in total. “The combination of the rebranded concepts, featuring inventive subs and made-to order-Baja inspired eats, coupled with the operational expertise of Sunshine Gasoline, provides a winning foundation to bring Quiznos back to local fans who have missed the brand, and to introduce Taco Del Mar to the region,” said Tim Casey, CEO of REGO Restaurant Group, in a statement.
Stay tuned to elrestaurante.com for regular news updates about Mexican multi-units.