The 55-Year-Old QSR Brand Optimizes Its Model and Expands Franchise Opportunities Across New Markets
After more than 55 years in business, Taco John’s® is building on its past success by taking bold steps to secure a bright future. The quick-service Mexican restaurant brand is optimizing its business model by ramping up unit-level profitability and expanding market reach to increase opportunities for current and prospective franchisees.
“There’s never been a more opportune time to grow with Taco John’s,” said Heather Neary, president and CEO of Taco John’s. “With prime territories available for growth, our enhanced development and performance strategies remain centered on finding franchisees who align with our business strategy and rich culture while continuing to prioritize innovation and maximize unit-level profitability.”
Strategic Improvements
To enhance its business model, the company has implemented strategic improvements in four key areas: operations, franchise development, branding and technology.
One priority in Taco John’s plan was to simplify operations. To streamline processes and create a more efficient and seamless operating model, the company collaborated with store teams and franchisee community. To accelerate franchise development, the company uses enhanced market analysis and tailored franchise growth plans to drive expansion in existing markets and new territories, providing scalable opportunities for franchisees.
In addition, Taco John’s portfolio is undergoing a system-wide refresh. With over 52% of the units sporting the bigger, bolder, better trade dress and several more in progress, they expect to finish the year with 75%. The makeover includes updated signage, refreshed color palettes, and modernized store design elements to revitalize its aesthetic. The company also upgraded its technology by incorporating a cloud-based POS system and AI-driven tools to equip franchisees with cutting-edge solutions including alternative ordering systems that align with the increased consumer demand for flexible ordering.
“This modernization alongside our newly optimized business model, is making it easier than ever for our franchisees to thrive” said Shannon Iverson, Vice President/Development, who joined Taco John’s leadership team last year. “We’re combining our best-in-class support with our innovative tools and proven systems to equip our franchisees with turnkey solutions so they can continue to deliver the bold, fresh flavors our guests love.”
Targeting Growth in Prime U.S. Region
Taco John’s operates nearly 350 locations across 22 states and is one of America’s largest Mexican quick-service restaurant brands. The company is targeting the Upper Midwest and Rocky Mountain regions for growth. It is working to expand into nontraditional markets such as airports, travel centers along highways, and college campuses, where it hopes to attract newer, younger fans with its unique take on Mexican food.
Founded in 1968 in Cheyenne, Wyo., Taco John’s is known for coining and popularizing “Taco Tuesday” in 1989. Its restaurants serve made-to-order Mexican food with a Western twist, including its original Potato Olés. All of Taco John’s dishes use fresh high-quality ingredients, including North American beef and Minnesota-grown potatoes, and taco shells are cooked in-house every day.
Along with its classics, the company regularly features innovative limited-time only items to provide customers with both familiarity and new flavors. Taco John’s has a value menu for those who prioritize affordability with options starting at $2. Additionally, in 2024, the company expanded its offering with the launch of a catering service, providing convenience and quality for customers looking to feed a crowd. This new service reflects the company’s commitment to meeting evolving customer needs while equipping franchisees with competitive marketplace solutions.
Mexican Cuisine Gains Popularity in the U.S.
Taco John’s is poised to take advantage of the strong growth of the popularity of Mexican-style cuisine in the U.S. According to IBISWorld, the Mexican restaurant sector has grown over the last five years to reach an estimated $96.4 billion in 2024, driven in part by the mainstream adoption of Mexican food into the American diet. According to the Pew Research Center, 11% of the restaurants in the U.S. — more than 1 in 10 — serve Mexican food, and a significant majority of counties in the U.S. have at least one Mexican restaurant.
For franchisees seeking opportunities with a proven brand in a growing business sector, Taco John’s offers concierge level support throughout the new development process. Value-engineered adaptability: traditional freestanding, end cap, and two modular options- drive-thru only and drive-thru plus seating- along with real estate strategies with enhanced market analysis and tailored franchisee growth plans, provides scalable opportunities for operators.
“As someone who has grown up with Taco John’s and witnessed its evolution firsthand, I’m excited with the direction the brand is heading,” said Brian Fuder, a second-generation multiunit franchisee and vice president of the brand’s franchisee association. “The leadership team has struck the right balance between honoring our roots and modernizing with real-time feedback from the franchisees. With innovative tools, a focus on quality ingredients, and a commitment to franchisee success, Taco John’s is ready for a new era.”
For more information, visit Taco John’s franchise website.
