Birria's boom fuels Mike's Red Tacos national expansion
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Mike's Red Tacos is bringing its rich, savory beef birria to cities across the U.S. Photo: Kate Murphy/Axios
Mike's Red Tacos opened its third San Diego location on Tuesday, but the local restaurant group is taking its birria national with a burst of new franchises.
Why it matters: The popular taco joint that started as a food truck five years ago has more than 200 locations planned across the country over the next several years.
Driving the news: The fast-casual chain specializing in beef birra tacos and other iterations of the rich, savory Mexican dish has secured franchise development deals for new restaurants from California to New England to Florida, the company announced in February.
- With rights sold in major markets — including Chicago, Detroit, Twin Cities, Austin and Boston — people will start seeing Mike's Red Tacos pop up later this year and early next year, according to Andrew Feghali, an investor and adviser for the expansion. He also helped Mike Touma start the business in 2021.
- No future leases have been signed, but franchisees are scouting locations, the Union-Tribune reported.
What they're saying: "Good food translates anywhere," Feghali told Axios.
- Birria and the consomé broth the beef is braised and then dipped in can take hours to stew and simmer in the chiles and spices that give it its flavor.
- Mike's birria recipe has been through about 50 iterations, and they've "found a way to produce it at scale very efficiently," Feghali said.
Flashback: Mike's Red Tacos gained national attention when it landed on Yelp's Top 100 restaurants list in 2023.
- That was only six months after opening its first brick-and-mortar location in Clairemont.
Dig in: The team is looking to capitalize on birria's growing popularity as a hot food trend with a strong social media presence.
- Birria now appears on 3.7% of U.S. menus, which is more than four times higher than in 2022, according to food and beverage research firm Datassential, CNBC reported.
Best bites: Mike's birria tacos are stuffed with slow-cooked beef, wrapped in crispy chile oil-soaked tortillas that are lined with melty cheese and topped with cilantro and onion. Dunk every bite in a side of rich consomé broth.
- The crunchstack is like the Crunchwrap Supreme of your dreams, layered with beef birria, guacamole, queso, crunchy tostadas, beans, cilantro and onions.
- Don't miss out on the loaded mini churros with fresh strawberries and sweet cream.
State of play: The planned expansion comes as fast-casual and fast-food restaurants are experiencing a fallout.
- Stocks and sales dropped last year at major chains as cash-strapped consumers, particularly Gen Zers and young millennials, try to save money.
- But Feghali said their tactic to successfully scale is selling to "already successful" franchisees operating multiple restaurants in the market they're interested in expanding to.
Between the lines: Veteran restaurant industry executives and investors Vincent Montanelli and Bill Phelps are also helping lead Mike's Red Tacos' rapid growth.
- They've been behind the success of some major chains, including Dave's Hot Chicken and Wetzel's Pretzels.
If you go: The new Mira Mesa location is open daily from 11am-11pm Sundays through Thursdays and from 11am to midnight on Fridays and Saturdays.
- The other spots are in Clairemont and Point Loma.
