Atlanta — Gala Capital Partners (GCP), an investment firm focused on emerging restaurant franchise brands, has reached an agreement to purchase Rusty Taco from Atlanta-based Inspire Brands. The terms of the deal were not disclosed. The Rusty Taco leadership team has co-invested in the acquisition and will remain in place to guide this new phase of the brand’s evolution.
Inspire Brands acquired a majority interest in the Rusty Taco brand along with its purchase of Buffalo Wild Wings in 2018. Inspire successfully reinvigorated the brand, clarifying its positioning and rebranding back to “Rusty Taco” (from R Taco). Under its ownership, Inspire grew the Rusty Taco system by 50% to 14 states, and the latest Rusty openings are at annualized AUVs nearly 50% better than the system average. QSR magazine recently recognized Rusty Taco as one of the “Best Restaurant Franchising Deals for 2022.”
“Inspire’s tightly integrated shared services model is optimized for brands at scale that have ample runway for continued domestic growth. Therefore, we concluded that an owner focused on emerging brands would be the best partner for Rusty’s next chapter of growth,” says Christian Charnaux, chief growth officer, Inspire. “After a thorough vetting process, we believe that GCP is precisely that partner, and we will be cheering on the brand’s continued success.
“Over the past decade, Rusty Taco has focused on creating a welcoming environment where guests can comfortably enjoy fresh and flavorful tacos, queso and margaritas, and we are excited to continue this journey with a tremendous new partner, GCP, to guide our next platform for growth,” says Denise Fenton, brand director and co-founder of Rusty Taco. “I want to thank Inspire Brands for the support and resources to propel our national footprint, accelerate our growth, and lead us to increased AUVs and success across four-day parts.”
GCP is a private investment firm based in Southern California founded by long term restaurant operator, entrepreneur and investor, Anand Gala. The firm invests in or acquires restaurant companies that are past proof of concept, feature capable management teams and offer strong growth potential. Additionally, GCP focuses on restaurant franchisors with 25 to 500 units. Current investments include Dunn Brothers Coffee (2022, 60 units), Cicis Pizza (2021, 300 units) and MOOYAH Burgers, Fries & Shakes (2017, 100 units).
Gala also brings an experienced perspective from investments in software, technology and real estate development. Gala Capital Partners is headquartered in Costa Mesa, Calif., and has a demonstrated track record of structuring creative investment solutions with lower middle-market franchisors, with a special focus on helping founders and their management teams, grow their brands beyond their initial stages. For more information, visit www.galacapitalpartners.com.
Inspire Brands is a multi-brand restaurant company whose current portfolio includes more than 32,000 Arby’s, Baskin-Robbins, Buffalo Wild Wings, Dunkin’, Jimmy John’s, Rusty Taco and SONIC Drive-In locations worldwide. The company was founded in 2018 and is headquartered in Atlanta. For more information, visit www.InspireBrands.com.
SOURCE: Inspire Brands