QSRGuy@QSRguy
Started with an amazing product being sold out of a parking lot. Now over 200 units sold nationwide and three locations doing absolutely ridiculous numbers.
Sound familiar?
No, I'm not talking about Dave's Hot Chicken. This is Mike's Red Tacos. And it's something I am very excited about.
My cousin Andrew Feghali is one of the investors behind the brand alongside Bill Phelps. I've watched this come together up close. And honestly, everything about it just makes sense.
Here's why I think this brand is going to be a massive success.
1) The team.
Bill Phelps built Wetzel's Pretzels & Blaze Pizza. Then helped scale Dave's Hot Chicken into the fastest growing franchise in the country before selling it for over a billion dollars. Now he's doing it again with Mike's Red Tacos. And the crazy part is he brings his rockstar team with him from brand to brand. Vincent Montanelli, who helped lead Wetzel's, is now president. These people have done this before. They have the playbook. They have the experience. And as part of that playbook, they are specialists at generating hype. Celebrity investors, great franchisees, national press. They know how to put a brand on the map before the first franchise location even opens.
2) They aren't trying to dominate a category. They're dominating a niche.
Same playbook as before. Dave's Hot Chicken didn't become the "fastest growing Nashville hot chicken brand"by accident. They didn't try to take on the entire chicken category. They picked a lane and owned it. Mike's is doing the exact same thing. It isn't taking on Mexican food head to head. The plan is to be the fastest growing birria brand in the country. And I have no doubt they will be.
3) The product is incredible.
I CRAVE the tacos. The food is amazing. They have a handful of items on the menu and they are incredible at all of them. The founder, Mike, is still highly involved in making sure product stays A+. But honestly, sometimes the most important thing in this business is how the food looks. And these red tacos are some of the most photogenic food I've ever seen. People can't help but post them on Instagram. And people can't help but get hungry when they see it. That kind of organic marketing is priceless.
4) They've curated a very select group of franchisees.
A brand can only be as strong as the people operating it. And when you have the ability to be super picky, you pick best in class. They've brought in experienced multi-unit operators from Dave's Hot Chicken, Jersey Mike's, Blaze, Dunkin', Little Caesars, Carl's Jr, and Wetzel's. Only trusted, proven operators signing big territory agreements.
**Humble brag. I'm included in that group. And I couldn't be more excited about it.
5) It's a reasonable operation and investment.
Operations are simple. The equipment isn't too expensive. And you don't need super prime freestanding drive thru real estate to make it work. All of those things check a box for me. When the operation is clean and the investment makes sense, you can focus on what actually matters. Executing at a high level and building something great. And the unit economics at the 3 open sites are mind blowing.
I don't get this excited about emerging brands often. But everything about this one feels right. The team, the product, the niche strategy, the franchisees, and the opportunity.
This brand is going to be everywhere. And I'm proud to be a part of it.
