Mike's Red Tacos Gears Up for National Franchise Expansion

Mike's Red Tacos, a San Diego-based birria chain, is poised for significant growth, announcing a nationwide franchising initiative to expand across the U.S. This ambitious expansion is backed by early-stage investors Bill Phelps and Andrew Feghali, known for their successful involvement with restaurant concepts like Dave's Hot Chicken.

Mike's Red Tacos, a San Diego birria chain, is launching a nationwide franchising initiative, supported by seasoned investors Bill Phelps and Andrew Feghali.

Strategic Investment Fuels Growth

The investment from Phelps and Feghali, which took place in early 2025, is set to facilitate the development of hundreds of new restaurants. While financial terms of the investment were not disclosed, it marks a pivotal moment for the brand.

Leadership has also been bolstered. Vincent Montanelli, formerly CEO of Wetzel's Pretzels, has joined Mike's Red Tacos as president. Founder Mike Touma will retain the rights to his San Diego locations and will serve as a board member and franchisee, ensuring his continued influence and brand stewardship.

Ambitious Expansion Targets

The company plans to leverage a growth strategy similar to those successfully employed by Wetzel's Pretzels and Dave's Hot Chicken. This proven approach aims for rapid, strategic expansion.

Already, franchising development deals have been secured for over 200 locations across various U.S. regions, including key markets like California, Texas, and New England. Some of these franchised restaurants are even anticipated to open by the end of the year, signaling a swift rollout.

Riding the Birria Wave

Birria, traditionally a slow-cooked beef or goat stew, is the chain's signature offering. Birria tacos, which feature this flavorful meat and are typically served with a consommé for dipping, have seen a dramatic increase in popularity.

Market data from Datassential highlights this trend: birria now appears on 3.7% of U.S. menus, representing a fourfold increase in just four years. The market is active, with other Mexican-inspired fast-food brands and at least 478 dedicated birria operators. Mike's Red Tacos' menu diversifies beyond birria tacos to include burritos, loaded nachos, fries, and birria ramen.

Birria's popularity has surged, appearing on 3.7% of U.S. menus—a fourfold increase in four years—positioning Mike's Red Tacos perfectly within a growing market.

Experienced Backers at the Helm

The new investment and leadership bring a wealth of experience. Bill Phelps is a co-founder of Wetzel's Pretzels and a founding investor in Blaze Pizza. His expertise extends to serving as an investor and CEO for Dave's Hot Chicken, where he oversaw significant franchising expansion before a majority stake was acquired by Roark Capital.

Andrew Feghali complements this experience, having been an early Dave's Hot Chicken franchisee and a major Little Caesars operator. Together, Phelps and Feghali established Four Wall Partners, and they will now serve as advisors and board members for Mike's Red Tacos, guiding its strategic growth.