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Taco Cabana being bought by California-based company

The popular Mexican fast-food restaurant started in San Antonio in 1978. The sale will help support Pollo Tropical, which left the San Antonio area in 2017.

SAN ANTONIO — Taco Cabana is being bought by a large restaurant operator based out of California. The Dallas-based parent company for Taco Cabana shared the news Thursday.

Fiesta Restaurant Group, Inc. said an affiliate of Yadav Enterprises Inc. agreed to buy the brand for $85 million.

Taco Cabana got its start in San Antonio in 1978. Their original location is at the corner of West Hildebrand Avenue and San Pedro Avenue, just north of downtown.

On its website, Taco Cabana says it specializes in Tex-Mex-inspired food "made fresh by hand from unique authentic recipes and ingredients that reflect our rich Tex-Mex history."

According to Fiesta Restaurant Group, Inc., proceeds from the sale will be used to fully repay Fiesta’s approximately $74.6 million of outstanding loans. A portion of those funds will also be used for to help the growth of another one of its restaurants, Pollo Tropical. Fiesta closed 30 locations of that chain across Texas, Tennessee and Georgia in 2017.

Fiesta President and Chief Executive Officer Richard Stockinger stated, “We made the strategic decision to sell the Taco Cabana business to allow our leadership team to focus completely on accelerating Pollo growth, and we are very excited about the tremendous growth opportunities we have for the Pollo Tropical business.”

In January of 2020, Fiesta announced that 19 Taco Cabana locations across Texas would close – and those closures were effective immediately. One location was in Austin, but the majority of the 19 closures affected the Houston and Dallas-Fort Worth areas.

To read more details about the sale, click here.

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