Mike’s Red Tacos bets big on birria
Mike’s Red Tacos focuses on birria as it plans for national growth with new systems and franchisee support.
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Mike’s Red Tacos is expanding its presence with ambitious plans for national growth and a new training center. Currently with three locations in San Diego, two of which have gross sales exceeding $3.3 million, the brand is capitalizing on the rising popularity of birria. Key personnel from established brands are being recruited to support the franchise's development.
Why It Matters
This suggests significant territory development opportunities, especially as Mike's Red Tacos positions itself in a growing segment with promising unit economics. The successful sales figures from the existing locations may attract potential franchisees looking to capitalize on consumer trends.
Mike’s Red Tacos is set to expand its footprint significantly, aiming to transition from its current three-unit presence in San Diego to a national, or even international, brand following its founding in 2021. The growth strategy is supported by the company’s positive early performance, with two locations reported to generate gross sales exceeding $3.3 million and $3.7 million, respectively. The brand has a strong commitment to securing its supply chain, evidenced by President and COO Vincent Montanelli's focus on logistics to deliver its signature birria and tortillas to new markets, including Detroit and New York.
Montanelli highlighted the brand's impressive unit economics and strong product offering as primary drivers of their bullish outlook, stating, "We are hot and I’m excited. We have three wildly successful stores, we have high (average unit volumes), and strong unit economics." The leadership team includes industry veterans such as Bill Phelps, co-founder of Wetzel’s Pretzels and current CEO of Dave’s Hot Chicken, alongside franchise operators from established brands like Jersey Mike’s and Dunkin’, which may enhance the overall operational strength of the franchise system.
