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Food Service Industry Updates

Torchy’s Tacos Wants to Double Number of States It’s Currently in

Torchy’s Tacos offers a wide selection of handcrafted tacos.

Austin, Texas-based Torchy’s Tacos aims to more than double the amount of states it is in over the next four years. To do so, the company has added to its ownership group as part of a round of funding that will be used to accelerate the brand’s continued growth nationwide.

Torchy’s Tacos, which currently operates more than 80 locations in Texas, Oklahoma, Colorado, Arkansas, Louisiana, Missouri and Kansas, plans to expand to 10 more states.

General Atlantic, a global growth equity firm that initially invested in 2017 and is a majority shareholder in Torchy’s, will now be joined in the ownership group by D1 Capital Partners, T. Rowe Price, Lone Pine Capital and XN. Torchy’s Founder Michael Rypka and all of the members of the original ownership group will reinvest as individuals.

“All of us at Torchy’s are incredibly grateful to Mike and the original ownership group that built this amazing brand over the past 14 years, and we are thrilled that they will all remain a part of the ownership group as individuals,” said G.J. Hart, CEO of Torchy’s Tacos. “We are also very fortunate to welcome investors of the caliber of D1 Capital Partners, T. Rowe Price, Lone Pine Capital and XN. Pairing these four firms with our existing partner General Atlantic, we feel that we have assembled a premier ownership group that will allow us to accelerate our growth and write the next chapter in Torchy’s history.”

Founded in a food trailer in Austin in 2006, Torchy’s Tacos is a “craft casual” brand that offers a wide selection of handcrafted tacos, queso, margaritas and more. Despite the challenges of the COVID-19 pandemic, Torchy’s continued its growth in 2020 by opening 12 new locations and expanding the brand to three additional states.

“Since our initial investment in 2017, Torchy’s has demonstrated the strength of its brand as it has successfully captured impressive unit growth,” said Andrew Crawford, chairman of Torchy’s and global head of consumer at General Atlantic. “We admire the management team’s deep operational experience and commitment to providing an original and differentiated experience. We believe their vision will continue to resonate across a wide-ranging demographic of guests, geographies and footprints as Torchy’s expands across the United States.”