Mike’s Red Tacos, a tiny San Diego birria upstart with just two shops, is suddenly lining up for a massive leap. Investors and restaurant veterans say more than 200 locations are already in development, a jump that could take the local favorite from food truck queues to a coast-to-coast franchise footprint.
In a Feb. 17 press release via PR Newswire, Mike’s Red Tacos announced a national franchising push and said it has development agreements for "more than 200" restaurants in markets including California, Michigan, Minnesota, New England, Nevada, Texas, Virginia, Arizona, Indiana and Illinois. The release also named Vincent Montanelli, a longtime Wetzel’s Pretzels executive, as company president. "With a team that has a proven track record in multi-unit franchising and restaurant leadership, we are set up to scale Mike’s Red Tacos," Montanelli said in the statement.
SFGATE reported that the expansion is being bankrolled by Bill Phelps and Andrew Feghali of Four Wall Partners, the investors who helped scale Dave’s Hot Chicken. The outlet notes the group has brought in experienced multi-unit operators to jump-start growth and is planning a mix of franchised and corporate-run units.
Prototype, Timeline and Training
The company says it will invest in a corporate-run prototype in Pasadena this spring that will double as a brand training center, and founder Mike Touma is set to open his third San Diego location in March. Construction on the first wave of franchise restaurants is expected to begin in the coming months, with initial openings targeted by the end of 2026, according to the PR release.
Industry outlets point to the leadership team’s track record as a key reason franchisees signed on. QSR Magazine reported that Phelps and Feghali bring proven distribution and tech infrastructure from their work with Dave’s Hot Chicken, experience that could speed the rollout while helping keep unit economics in line.
On the home front, Mike’s Red Tacos started as a food truck in June 2021 and grew into two brick-and-mortar spots in San Diego before launching this franchising effort, according to the brand’s website. Hoodline previously covered the shop’s free tacos at its Midway debut, and many longtime customers say they are waiting to see whether the flavors and service that built its cult following can translate in far-flung markets.
Analysts say the timing lines up with a broader industry wave. Birria has been one of the fastest-growing menu trends in recent years, which helps explain why investors are backing a concept built on a tight, craveable lineup. Industry data shows sharp gains in menu penetration for birria and other Latin-inspired formats, a tailwind backers hope will turn this San Diego staple into a national habit, according to insights from Tyson Foodservice.
