Rusty Taco, a fast-casual restaurant founded on Greenville Avenue in Dallas, was acquired by a California investment firm that owns hundreds of locations in two other chains headquartered in North Texas.
Gala Capital Partners of Costa Mesa, Calif., announced Monday that it will acquire the chain of 37 Mexican-themed stores that the late Rusty Fenton started with his wife Denise in 2010. The terms of his deal with the seller, Inspire Brands, were not disclosed.
This is the second sale of the taco-centered chain this month. Fort Worth-based Fuzzy’s Taco Shop was sold Dec. 5 to Dine Brands Global Inc. of Glendale, Calif. for his $80 million in cash.
Founded by restaurant entrepreneur and investor Anand Gala, Gala Capital has invested in 400 locations across Coppell-based Sisis Pizza and Plano-based Mooya Burger, French Fries and Shakes. increase.
“We couldn’t be more positive about adding Rusty Taco to GCP’s portfolio,” Gala said in a statement. “The future looks bright, but we also know there are great opportunities for brands right now.”
Gala, a company that specializes in restaurant franchisors with 25 to 500 locations, described Rusty Taco as being in the “trendy dining segment” while offering franchise operators a competitive return on investment.
According to trade publications, Rusty Taco made $35.5 million in sales last year, up 28% from the previous year. Franchise TimesFranchisees typically invest between $531,900 and $897,450 in launches.
With annual sales averaging about $1.1 million for its franchises, Rusty Taco is listed as one of the best franchise deals of 2022, according to industry publication QSR.
According to GCP, the chain’s management team, including CEO Brendan Mauri, co-invested in the deal and it will remain in place.
Restaurant chain giant Inspire Brands acquired Buffalo Wild Wings in 2018, along with a majority stake in Rusty Taco. The Atlanta-based company’s portfolio includes over 32,000 of his Arby’s, Baskin-Robbins, Buffalo Wild Wings, Dunkin’, Jimmy John’s and Sonic. drive-in location.
Inspire has expanded Rusty Taco’s footprint to 14 states and rebranded it from R Taco to its original name.
Christian Charnaux, Chief Growth Officer at Inspire, said: “We concluded that an owner focused on emerging brands would be the best partner for Rusty’s next chapter of growth.”