The San Antonio-based Tex-Mex chain Taco Cabana has mostly stayed in the larger cities of Texas since its launch 46 years ago feeding hungry crowds after the bars and clubs closed.
After switching to a franchise system and coming up with a more streamlined store design, the company entered Albuquerque last year and plans to expand into surrounding states with Colorado’s Front Range at the top of its list.
“We love Denver. It is a growth market with young families and the demographics fit. Initially, we are focused on Colorado Springs and Denver,” said John Ramsay, director of franchise sales and development for Taco Cabana.
The fast-casual chain is known for its bright pink color scheme, outdoor patio seating and full-strength margaritas offered both in-house and in sealed containers served via the drive-thru.
Taco Cabana is looking for regional franchise teams, rather than individual store franchisees, with restaurant experience capable of opening up multiple locations in the two markets. About five to eight restaurants could go into Colorado Springs and anywhere from 20 to 30 in metro Denver, starting next year, Ramsay said. Other cities along the I-25 corridor could follow.
The company makes about a third of its sales each at breakfast, lunch and dinner, and takes on different personalities with each meal. Breakfast, which is served 24 hours, includes bulk packages of tacos that customers will bring into the office or workplace instead of donuts. At lunch, the focus switches to quick turn and value offerings served through the drive-thru as locations take on fast food rivals.
From 3-6 p.m., there is a happy hour with discounts on food and drinks. For dinner, locations take on more of a fast-casual feel with a larger menu that appeals to families looking for a sit-down meal or something to take home.
Brothers Felix and Mike Stehling owned bars and clubs in San Antonio and noticed that their staff and patrons would head out looking to eat and keep things going after closing time at 2 a.m. They acquired a former Dairy Queen across the street from one of their bars and in 1978 began serving late-night tacos.
A worker sent to buy supplies for the new location ran across a sale on hot pink paint at the hardware store and made an executive decision. The color has stuck ever since and inspired a motto for creative thinking called “Think pink.” The walk-up DQ location also lacked indoor seating, which helped establish another trademark, a focus on outdoor tables and patio dining.
Colorado’s colder climate will make that tradition tougher to maintain year-round, but the stores will focus on indoor-outdoor dining as the weather allows, Ramsay said.
Colorado also takes a tougher stand than free-wheeling Texas on serving alcohol through a drive-thru, so margaritas loaded with tequila are likely a non-starter in the state. But Taco Cabana has developed an agave wine margarita with a lower alcohol content that could prove palatable to both customers and the state’s liquor laws, Ramsay said.
Although Taco Cabana, which has 140 plus stores, may lack the cult following of In-N-Out Burgers or Buc-ee’s, a legendary Texas-based convenience store, Ramsay said the restaurant does have loyal fans among former military personnel and other transplants from southern Texas.
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