Mike’s Red Tacos Eyes 200 Franchises as Birria Boom Goes National

Mike’s Red Tacos is moving from cult favorite to national contender.

The San Diego-born birria concept announced it has secured franchise development agreements for more than 200 locations across the U.S.

Needless to say, it's a significant upgrade from its current two restaurants.

Founded as a food truck in 2021 by Mike Touma, the brand quickly built a following for its beef birria tacos and signature consommé dip.

Now, it leans into an aggressive brand marketing strategy built around scale.

The push is backed by industry heavyweights Bill Phelps and Andrew Feghali, veterans of Dave’s Hot Chicken’s rapid rise.

Vincent Montanelli, a former longtime executive at Wetzel’s Pretzels, has been named company president to lead the expansion.

“The strength of Mike’s Red Tacos is a combination of its authentic and craveable Birria, a strong business model, incredible partners, and positioning to capitalize on a market demand that Birria is experiencing,” Montanelli said.

Phelps, who helped scale Dave’s Hot Chicken into a national name, told Fast Company that few brands catch his attention.

“I love entrepreneur-started businesses and guys that have figured things out,” he said.

“The product is just amazing. It’s so good, it’s like a breakthrough within a category.”

The development pipeline spans markets including California, Texas, Illinois, Arizona, Michigan, and several regions in New England.

The first franchise units are expected to open by the end of 2026.

From Food Truck to Prototype Store

The company is also investing in infrastructure to support the rollout. A new corporate-run Pasadena location will open this spring, serving as a prototype and brand training center.

Touma is opening his third San Diego store, as well.

Mike’s Red Tacos has benefited from strong social media marketing, particularly among Millennial and Gen Z customers drawn to its “the dip is worth the drip” tagline and highly visual food presentation.

And Birria’s growth has mirrored this online momentum.

According to Datassential, as referenced by the company, birria is expected to appear on more than 5% of U.S. menus by 2028, up from just 0.5% in 2020.

Mike's Red Tacos' target markets include Seattle, Phoenix, Las Vegas, Austin, Chicago, Miami, and Boston.

And for franchisees, the pitch centers on strong average unit volumes, a small-footprint model, and experienced leadership.

In 2024, Dave’s Hot Chicken surpassed $600 million in systemwide sales, underscoring the kind of scale Phelps and his team have previously achieved.

It even launched its first-ever Super Bowl spot earlier this year, with a focus on the fans' genuine love for its offerings.

Lessons From Mike’s Red Tacos’ Franchise Play

For restaurant founders eyeing scale, Mike’s Red Tacos offers a real-time lesson in building product hype and backing it with operational muscle.

• Emerging food trends would benefit from experienced operators to turn the buzz into sustainable multi-unit growth.
• Prototype stores and training centers reduce friction as brands expand into unfamiliar markets.
• Investor credibility can accelerate franchise signings before national awareness fully peaks.

The real test will be Mike's Red Tacos' execution. Can it maintain product quality and sustain sales while multiplying locations across 25 markets?

Our Take: Are We Looking at the Next Chipotle? 

I’ve seen a lot of food trends burn bright and fade fast. Birria feels different, but only if it survives the jump from Instagram darling to strip-mall staple.

What Mike’s Red Tacos is attempting takes guts. Scaling too fast can risk diluting what made people line up in the first place.

But when veterans of Dave’s Hot Chicken say they see another breakout, then it must have real promise.

I think the next two years will determine whether this becomes the next fast-casual powerhouse or just another regional success story that tried to outrun its roots.

In other news, White Castle just launched a new installment of its "Crave Thy Castle" platform, bringing on the laughs while spotlighting its crave-worthy burgers. 

These top agencies experienced in cultural storytelling help brands translate long-held values into moments that feel grounded wherever they appear.