News

Taco Cabana closing 19 Texas units

January 13, 2020

Taco Cabana is closing 19 units in Texas, according to a press release from Fiesta Restaurant Group, the chain's parent company, which also owns Pollo Tropical.

Nearly all employees impacted by the closures will be offered positions at other Taco Cabana locations, Fiesta President and Chief Executive Officer Richard Stockinger said in a press release

"During the fourth quarter, our Taco Cabana team began implementation of a margin improvement plan that we expect to improve restaurant-level Adjusted EBITDA margins by approximately 200 to 300 basis points in 2020 vs. 2019," he said. "The margin improvement plan includes efficiency initiatives in operations across food and operating expense categories and the closure of 19 under performing restaurants in Texas. These closures eliminate all stores with significant losses, which we expect will result in a highly viable portfolio of restaurants."

Stockinger said the company is making progress on sales- building initiatives across both Pollo Tropical and Taco Cabana in off-premise sales, including catering, online and delivery.

"In addition, as our new senior management team enters their first full year together, we are optimistic about improving comparable restaurant sales at both brands in 2020," he said.

In December 2019, Fiesta announced it was closing 14 Pollo Tropical locations in Florida and Georgia and nine Taco Cabanas in Texas.