In the crowded taco space, Tacodeli has a very Texas-style differentiator.
Breakfast tacos.
Tortillas stuffed with braised beef, scrambled eggs (pasture-raised, from Vital Farms), salsa de arbol and green onions, for example; or organic chorizo, eggs and jack cheese. This is the way Texans love to start their day, and breakfast tacos have been a mainstay for the Austin, Texas-based brand as it expands across the state.
Founder Roberto Espinosa said about 40% of sales is from the soon-to-be 15-unit chain’s morning sales, with the rest split between lunch and dinner.
Because guests tend to be in a hurry in the morning, Tacodeli offers a hot grab-and-go section for people to grab a quick foil-wrapped meal and a cup of coffee if they don’t have time for made-to-order.
“Grab and Go has been very successful,” said Espinosa. “It’s a convenience play, but it’s also a way to keep people coming in the door.”
Hot grab-and-go offerings are at the ready for those in a hurry. | Photo courtesy of Tacodeli.
Espinosa admits, however, that breakfast tacos are more Texan than Mexican.
Originally from Mexico City, he founded the chain in 1999 to bring a taste of his homeland to the U.S. Espinosa moved to Texas with his family when he was 10. Later, after attending the University of Texas, he asked his father for help opening a restaurant.
“Dad was the bank,” he said. “But he said I wasn’t ready.”
So the younger Espinosa went back to Mexico to stage in Cancun. Then, when he really was ready, he returned with even more of a passion to bring authentic tacos to Texas.
Tacodeli started with a simple menu of 13 tacos, but the menu has grown significantly over the years, now to about 43 types of tacos, including unique items tapping local farmers and producers.
This week, for example, Tacodeli is featuring a Shishito Sirloin Taco ($6.25) as the rotating Special of the Month. Espinosa said the shishitos, which come from a local farmer, are roasted with red bell peppers. The thin-sliced beef is seared on the plancha, and the medley is topped with caramelized onions and a splash of lime and the chain’s signature Salsa Doña Fresca, with a crisp radish.
In fact, the Salsa Doña—which Espinosa said is made simply with jalapenos, garlic, salt and oil—is hugely popular. Tacodeli is one of few chains to be noted by Taco Trail author José R. Ralat, who specifically calls out the “brillian green salsa known simply as the Doña.”
Tacodeli only added dinner since the pandemic, but the daypart is growing, especially since the addition of real tequila-based margaritas, Ranch Water cocktails and a few beers.
The brand is also building a consumer-packaged goods business, with its salsas and sauces available in some Whole Foods, H.E.B. stores and Krogers in Texas.
It helps raise brand awareness. Tacodeli operates primarily in the Austin area, but the brand has recently moved to Houston and Dallas.
All but one Tacodeli are company owned. | Photo courtesy of Tacodeli.
All but one airport location is company-owned, and Espinosa isn’t really thinking about franchising at this point, though that doesn’t mean he never will, he said.
For now, he sees plenty of room to expand the brand across the state. He hired a new CEO, Peter Gaudreau, the former CEO of Ruby Slipper, who joined about a year ago.
“He’s built a phenomenal team,” said Espinosa, saying the goal is to get to 25 units over the next three years, continuing on the path of self-funding.
Next week, Tacodeli is scheduled to open its first location with a digital-order pickup drive thru lane. If that goes well, Espinosa said they may look for more drive-thru pickup locations. But he doesn’t plan a drive-thru with in-lane ordering.
“Drive-thrus scare me,” he said. “Our throughput times are not designed for drive-thru. It would be a tall order for that.”
The chain has also beefed up its catering staff with the goal of growing that side of the business. Catering has been as high as 20% of sales, but dipped down to 10%.
“We’re trying to claw back up,” he said.