Key facts
- Los Tacos No. 1 CEO Christian Pineda aims to prevent negative impacts from private equity investment.
- TSG Consumer, an investor in Crumbl and Dutch Bros, is backing Los Tacos No. 1.
- The lending market remains difficult due to potential interest rate hikes.
- The public market is largely focused on AI, potentially overlooking other companies.
Los Tacos No. 1, a popular New York City taco chain, has secured private equity investment from TSG Consumer, a firm also known for backing Crumbl and Dutch Bros Coffee. The move has sparked concern among some fans who fear the investment could alter the brand's beloved Tijuana-style offerings. CEO Christian Pineda expressed determination to maintain the chain's quality, while TSG executive Colin Welch aims to assure customers that the experience will remain unchanged. This investment comes at a time when raising capital is challenging due to high borrowing costs in the lending market and a public market heavily focused on artificial intelligence, making it difficult for companies outside that sector to attract investors. A previous example of a positive PE outcome in the restaurant industry is Blackstone's involvement with Jersey Mike's, which professionalized the sandwich chain before its IPO, though the company's stock has since traded below its initial offering price.