Torchy’s Tacos believes it’s differentiated in the fast-casual taco space.
Not just different, but “damn different,” says CMO Jackie Hopkins.
Founder Mike Rypka is a chef who crafts a menu known for its clean, premium ingredients, house-made tortillas, and unexpected flavor combinations, like the Scallywag, made with coconut and Cap’n Crunch battered shrimp.
“I think that’s really, in its essence, what sets us apart from those traditional fast-casual competitors,” Hopkins says. “We also operate very much, you could call it, ‘high-quality culinary.’ Anything from the food to what we’d like to call a guilt-free environment. So an unapologetic vibe in our restaurants—come be yourself whether you’re with your family, with your friends. Have a margarita, eat some queso, have a damn good time.”
The roughly 130-unit chain is one of the louder players in a segment known for its innovation, creativity, alcoholic sales, and elevated dining experience.
Torchy’s balances core menu staples with continuous innovation to deliver value and excitement to guests.
Signature items like the Trailer Park (fried chicken, green chiles, lettuce, pico de gallo, mixed cheese with poblano sauce on a flour tortilla)—which allows customers to “get it trashy” by replacing the lettuce with queso—are fan favorites. There is also Torchy’s Taco of the Month program featuring a rotating taco creation promoted through digital marketing and influencer partnerships.
Also, 80 percent of locations have a bar.
“That brings a different aspect to that experience, which I think can be very inviting, whether you’re coming in by yourself or you’re coming in and hanging out with friends,” Hopkins says.
Rusty Taco president Daniel Smith describes his brand as a laid-back, authentic concept that prioritizes quality and no short cuts. He adds that tacos have evolved beyond their Mexican roots and are now a versatile platform for culinary expression. Rusty Taco is pushing boundaries with unique offerings like chicken bacon jam and chicken truffle tacos—products that don’t necessarily reflect traditional Mexican flavors but still appeal to guests. Drawing from his experience in the burger industry, Smith believes the taco category has only scratched the surface of what’s possible.
Smith compares his first year with the 36-unit Rusty Taco to building a race car in which he laid the groundwork for accelerating growth. He overhauled about 80 percent of the corporate team, restructured marketing, and focused on franchisee success through stronger support and smarter media spend.
One major milestone was the rollout of a revamped menu with refreshed flavors, first tested in Dallas and Ohio, that’s been well received and is expanding to more locations. The menu includes all-day breakfast tacos and burritos, the Tres Grande (trio of signature queso, salsa, and guacamole served with chips), Rolled Tacos, and Cracked Tostada Shrimp Ceviche.
The executive is currently looking at opportunities in better understanding the chain’s core customer. He also sees room for growth in brand awareness and density.
“We’re in 12 states. We don’t have a lot of brand density, and so we’re looking to fill in some of those states. It just makes so much more sense,” Smith says. “You get such better brand awareness when you get a lot of restaurants.”
Fuzzy’s Taco Shop president Patrick Kirk—who was promoted to his role last year—says the landscape is increasingly competitive, but rather than getting caught in the blur between QSR, fast casual, and full service, the approximately 120-unit brand wants to clearly communicate what sets it apart: fresh, scratch-made flavors—especially in its tacos and margaritas—and a hospitable dining experience.
The company approaches menu innovation by tapping into trending global flavors and cultural food moments and then translates those into creative taco formats. In the past two years, the culinary team—led by chef Daniel Camp—has looked to bring relevant products to the menu while also evaluating how to better leverage the wide range of proteins already available in the kitchen.
From March 26 to May 6, the fast casual offered a new street-style twist, the Carne Campechano Taco and Carne Campechano Bowl, featuring brisket, chorizo, and bacon. Guests could add an 18-ounce Michelob Ultra for $4, a nod to Fuzzy’s notable bar scene.
“I think we’re in a really fascinating time right now with the definition of QSR, fast casual, and full service because I see the lines blurring immensely,” Kirk says. “So it’s wide open right now to define how you think service should be and how you can create the best food and the best guest experience.”
Meanwhile, Taco Cabana, founded in 1978, is one of the older brands in the fast-casual taco segment. President Ulysses Camacho says the chain is positioned between legacy and innovation. As the company approaches its 50th anniversary in 2028, it continues to lead with core taco offerings—like the long-standing Steak Fajita Taco and the popular Bean and Cheese Taco—while also expanding its menu with trendy items, such as Mesquite-Smoked Brisket, which is slow-smoked for more than 14 hours over real mesquite.
Taco Cabana appeals to a wide audience with its all-day service model, offering breakfast, lunch, dinner, and even overnight options in some locations. All restaurants have full liquor licenses and drive-thrus, allowing them to serve alcohol—including to-go margaritas in Texas.
The chain, which operates 140 corporate locations and seven franchised units in New Mexico, recently unveiled a new restaurant prototype, called TC 3.0, which had been in development for two years and is now open at two corporate locations in the Houston suburbs. Early results show these new stores are outperforming the system average in sales.
The prototype was designed with efficiency and convenience at its core, featuring a pickup window for digital orders, dual drive-thru lanes, and a modernized design that still nods to the brand’s iconic pink aesthetic. Operationally, the restaurant has a smaller footprint (about 3,000 square feet) and a streamlined kitchen layout that uses a single make line to serve both the dining room and drive-thru, reducing labor needs and improving speed.
“We’re able to run it with less labor in a very efficient way,” Camacho says.
Taco Cabana has seen much interest in its franchising program since officially announcing plans to expand in the fall, according to Camacho. While demand is strong outside of Texas, there’s also significant interest within the state in areas the brand hasn’t historically served, including Arizona, Arkansas, Missouri, Tennessee, and Oklahoma—markets where it can use existing infrastructure and purchasing power.
“We knew there was going to be some interest outside Texas, but it’s been overwhelming, the interest to take Taco Cabana, some of the flavors, some of the core items, outside Texas,” Camacho says.
As of now, Taco Cabana has two franchise deals in progress and hopes to bring two new franchisees into the system by year’s end.
Rusty Taco is pursuing growth as well after being sold by Inspire Brands to private equity firm Gala Capital Partners in late 2023. It eyes strategic market expansion, focusing on high-demand states like Texas, Oklahoma, Arizona, and Florida. The brand is growing through both traditional restaurants and nontraditional formats, such as its partnership with Good to Go travel centers, where full-sized restaurants and in-store kitchens are embedded within gas stations. Rusty Taco is also present in venues like stadiums, with six kiosks inside U.S. Bank Stadium, home of the NFL’s Minnesota Vikings.
Franchise interest is strong, Smith says, with existing and new franchisees actively signing development deals and scouting locations. The brand’s leadership is also proactively seeking operators in new markets, especially those looking to diversify their portfolios.
Smith says that in order for the $3–$5 taco model to succeed, franchisees need to maximize multiple revenue streams, including breakfast, lunch, dinner, and catering. The most successful operators, he says, understand how to tap into all of those dayparts and build business around local demand centers like offices, hospitals, and car dealerships.
“We’re actively involved in local events and partnerships,” Smith says. “We prioritize grassroots marketing strategies to deepen the local brand presence, so we’re fully engaged in our communities. We’re entrenched. We want to employ the kids and the communities as well.”
All four chains see customers continuing to watch their spending closely, but each agree that value is being defined more broadly than low prices.
Hopkins believes customers are seeking value through experience. Torchy’s looks to create an emotional connection with guests through personality-driven marketing and a rebellious, fun brand voice. The brand uses AI and data-driven marketing to deliver tailored messages across digital platforms to meet customers when, where, and how they want.
A crucial part of this strategy is Torchy’s new loyalty program powered by Punchh, which offers exclusive access to new items and experiences for over a million members. Rather than relying on discounts, the program is designed to build long-term brand affinity and frequency.
“We want to empower them, we want to satisfy them, and just let them know that they don’t have to compromise,” Hopkins says.
Hopkins says listening to guests is paramount, and they want an environment where the brand doesn’t take itself too seriously and they don’t overspend. She also emphasized the role of community connection. As Torchy’s expands into new markets beyond Texas, customers want the brand to feel local and invested, becoming a go-to neighborhood spot. That hyperlocal presence, she says, helps deepen customer loyalty.
“Our platform, as I talked about, is damn good, but our positioning in the market is ‘devilish for your own good,’” Hopkins says. “And so it’s truly that. We help you to indulge, we help you to have a great experience, we help you be yourself. And we do it all under the guise of doing it because it’s good for you. You don’t have to compromise when you come to Torchy’s.”
Out of the four, Fuzzy’s is the only brand part of a larger public company. Dine Brands, which also owns Applebee’s and IHOP, officially acquired the fast casual in 2024. Kirk says this partnership provides Fuzzy’s with advantages that a brand of its size wouldn’t typically have.
With shared services—including legal, supply chain, communications, and operations—Fuzzy’s benefits from the broader expertise and infrastructure of Applebee’s and IHOP. He adds that Fuzzy’s is the “little sibling” in the portfolio, giving it access to best practices, strategic support, and a quality development team. The chain hopes to expand westward. It has the highest concentration in Texas, particularly Dallas-Fort Worth, Oklahoma City, and Denver, but it’s signed two big deals near the West Coast.
In response to more cautious guests, the fast casual has spent the past several months sharpening its brand positioning and working to identify exactly who its guest is and how to effectively reach them.
Fuzzy’s—along with Taco Cabana, Torchy’s, and Rusty Taco—each acknowledge there’s more work left to be done.
“This is a period where those that really know who they are and have a plan and go after it are gonna succeed and those who are chasing after unknowns are gonna struggle,” Kirk says.
