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Shake-up at Fiesta: Execs step down, Board halts Pollo Tropical Texas development and Taco Cabana sale

September 28, 2016

Tim Taft is stepping down as CEO of Fiesta Restaurant Group, the parent company of Pollo Tropical and Taco Cabana. The group's board of directors has appointed COO Danny Meisenheimer interim CEO and president, effective Sept. 30, when Taft retires, according to a company press release. Todd Coerver, COO and VP of Taco Cabana, is also leaving the company. Mark Phillips, the company’s VP of operations, will fill the role in the interim.

"I am honored to lead Fiesta and intend to work closely with the board to advance the company’s strategic initiatives," Meisenheimer said. "I have the utmost confidence in our management team and its ability to execute on our business plan, including continued Pollo Tropical restaurant development in Florida and Atlanta, and continued Taco Cabana restaurant development in Texas. Enhancing operations and generating additional awareness of the Pollo Tropical brand among consumers remain top priorities."

The board has already started searching for a permanent successor to Taft and will consider both internal and external candidates for the role. The committee is also searching for an experienced restaurant executive to serve as a non-executive director to fill Taft’s board seat.

The company has decided to suspend additional development of Pollo Tropical restaurants in Texas and review its strategy for development in the state, while it continues to build brand awareness, affinity and off-premise consumption through several initiatives already in process. The company will continue developing and opening Pollo Tropical restaurants across Florida and in Atlanta, Georgia. Likewise, next year the company expects to open 14 to 17 Pollo Tropical restaurants, primarily in Florida, and eight to 10 Taco Cabana restaurants in Texas.

Additionally, the Board has re-evaluated its previously announced plan to separate Taco Cabana and Pollo Tropical brands, saying that continued brand ownership is in shareholders’ best interest, according to the release.

"Considering the persistent challenging market conditions impacting the restaurant industry as a whole, and constructive feedback from investors, we have decided it is in the best interests of all shareholders to maintain ownership of the Taco Cabana brand," said Fiesta Board Chairman Jack A. Smith. "Our entire focus remains on taking proactive steps to maximize long-term shareholder value, and our priority in this process involves identifying a seasoned industry professional to serve as Fiesta’s permanent CEO. The Board has full confidence in Danny’s ability to lead the company during this interim period."