Private-equity firm TSG Consumer has taken a stake in Los Tacos No. 1, the Tijuana-style taco brand that started as a single stand in New York City’s Chelsea Market in 2013.
The investment was announced this week and was the top story on Nation’s Restaurant News. Financial terms were not disclosed, and it is not known whether TSG Consumer will act as a majority or minority investor in the brand.
The Los Tacos No. 1 Deal
Los Tacos No. 1 got its start at a stand in Chelsea Market in 2013. The brand is known for its Tijuana-style tacos.
TSG Consumer is the private-equity firm making the strategic investment. The firm’s exact plans for Los Tacos No. 1 have not been made public.
A Tough Year for Chain Restaurants
The investment news comes alongside fresh data from the Technomic Top 500, which tracks the largest restaurant chains. The report shows chain restaurant sales slowed again in 2025 as consumers cut back on dining.
Not every sector suffered. Coffee, beverages and snacks, plus chicken, were the bright spots, according to the report.
7 Brew Wins a Bidding War
Elsewhere this week, drive-thru coffee chain 7 Brew won a bidding contest for a large group of former Salad and Go sites. The salad chain is now bankrupt, and its locations were being sold off.
7 Brew’s win came only after rival Dutch Bros chose not to increase its previous bid of $105 million for the locations.
The sites came at a hefty price.
Wonder Cuts Staff Ahead of IPO
Food hall and delivery company Wonder is laying off 7% of its staff, according to a person familiar with the decision. The cuts will affect about 150 workers companywide.
The move is part of an effort to streamline the business ahead of a planned IPO.
The Week’s Top Story on NRN
| Rank | Story |
|---|---|
| 1 | Los Tacos No. 1 receives investment from TSG Consumer |
| — | 7 Brew wins bidding for former Salad and Go sites |
| — | Wonder lays off 7% of staff before planned IPO |
Comparing the Two Restaurant Deals
| Detail | Los Tacos No. 1 | 7 Brew / Salad and Go sites |
|---|---|---|
| Deal type | Strategic investment | Real estate acquisition |
| Investor/buyer | TSG Consumer | 7 Brew |
| Financial terms | Not disclosed | Hefty price; rival bid was $105 million |
| Brand status | Tijuana-style taco brand | Drive-thru coffee chain |
What’s Next for Los Tacos No. 1
Los Tacos No. 1 has not said what it plans to do with the new investment. No specific plans have been confirmed.
The Technomic Top 500 Report
The Technomic Top 500 is a ranking of the largest restaurant chains. Its 2025 data shows a slowdown in sales across the sector.
The report identifies coffee, beverages and snacks, plus chicken, as the categories that thrived during the year.
The week’s news covered investment, real estate deals and staffing changes across the restaurant business. Each story stands on its own terms, with details still emerging on the Los Tacos No. 1 deal and Wonder’s upcoming IPO.
Source: nrn.com
Get the Notebook.
The day's best stories and every fresh verdict, in plain English, in your inbox by seven. One email a day, no more.