Franchising

Rusty Taco sold to Gala Capital Partners

Provided

December 20, 2022

Gala Capital Partners, an investment firm focused on emerging restaurant franchise brands, is buying Rusty Taco from Inspire Brands, which acquired a majority interest in the band when it purchased Buffalo Wild Wings in 2018. The terms of the deal were not disclosed. The Rusty Taco leadership team has co-invested in the acquisition, however, and will remain in place to guide the transition.

"Inspire's tightly integrated shared services model is optimized for brands at scale that have ample runway for continued domestic growth," Christian Charnaux, Inspire's chief growth officer, said in a company press release. "Therefore, we concluded that an owner focused on emerging brands would be the best partner for Rusty's next chapter of growth. After a thorough vetting process, we believe that GCP is precisely that partner, and we will be cheering on the brand's continued success."

Inspire Brands reinvigorated the taco brand by clarifying its positioning and rebranding back to "Rusty Taco" (from R Taco) to honor its legacy and founders. As a result, Inspire grew the system by 50% to 14 states, and the latest Rusty openings are at annualized AUVs nearly 50% better than the system average, according to the release.

"Over the past decade, Rusty Taco has focused on creating a welcoming environment where guests can comfortably enjoy fresh and flavorful tacos, queso, and margaritas, and we are excited to continue this journey with a tremendous new partner, GCP, to guide our next platform for growth," Denise Fenton, brand director and co-founder of Rusty Taco, said in the release. "I want to thank Inspire Brands for the support and resources to propel our national footprint, accelerate our growth, and lead us to increased AUVs and success across four-day parts."

Based in Southern California and founded by restaurant operator, entrepreneur and investor, Anand Gala, GCP also owns Dunn Brothers Coffee, Cicis Pizza and Mooyah Burgers, Fries & Shakes.

"We couldn't be more positive about bringing Rusty Taco into the GCP portfolio. While the future looks bright, we also know that there's fantastic opportunity right now for the brand," said Gala, who also brings an experienced perspective from investments in software, technology and real estate development. "Rusty Taco offers competitive unit-level economics and investment returns, has manageable operations, and is in a dining segment that is on-trend, growing, and lacks competition. As a result, Rusty Taco will be a strong addition to the portfolio."

Rusty Taco has over 30 locations.