Key Takeaways
- • TSG Consumer, a private equity firm founded in 1986 with $14 billion in assets under management, made a minority investment in Los Tacos No. 1, the New York City taco chain, per Business Insider; terms and purchase price were not disclosed.
- • Los Tacos No. 1 serves about 1,200 customers daily with an average check of roughly $20, and annual revenue has grown around 30% each year since opening in 2013.
- • The chain operates 10 Manhattan locations plus sister concept Los Mariscos at Chelsea Market, with a Brooklyn opening targeted before year-end 2026 and three more locations planned for 2027.
- • TSG says it will let founder-led management run daily operations and provide guidance on expansion, citing its prior work with Pura Vida Miami, which grew from two states to seven locations since TSG's 2025 investment.
- • CEO Christian Pineda has floated a possible future IPO, while cost pressures from beef, limes, avocados and tomatoes remain a key operating challenge.
Summary
Private equity firm TSG Consumer has made an investment in Los Tacos No. 1, the New York City taco chain, according to Business Insider. The firm, founded in 1986 with $14 billion in assets under management, also holds stakes in food and beverage names including Pura Vida Miami, Crumbl and Dutch Bros Coffee. TSG declined to disclose the deal terms or the size of its stake. The news triggered a backlash among customers concerned about changes to food quality, prompting CEO and cofounder Christian Pineda to address the criticism directly in an Instagram post on September 4, in which he said the chain would not add guacamole charges, switch to horse meat or alter its tacos.
Colin Welch, managing director and head of New York at TSG Consumer, said the firm was attracted to the business's loyal customer base and its status as a "New York institution." Welch said TSG plans to leave day-to-day management with Pineda and his team, while the firm will advise on future expansion. He cited Pura Vida Miami, which grew from locations in two states to seven since TSG announced its minority stake in 2025, as an example of the approach.
Los Tacos No. 1 was founded by Pineda, Tyler Sanders and Kyle Cameron, who moved from California to New York City in 2010 and opened the restaurant in 2013. The chain reports annual revenue growth of about 30% per year and serves roughly 1,200 customers a day. Pineda said the company's most significant cost increases have been in beef, limes, avocados and tomatoes. According to the US Department of Agriculture, beef prices were 5.9% higher in August 2026 than a year earlier and are forecast to rise 9.4% over the full year. Pineda said the company intends to absorb such pressures through efficiency rather than price increases or quality cuts. He noted that the carne asada taco has risen from $3.50 in 2013 to $5.95 today.
Pineda described the investor search as a way to scale in a "cautiously smart" manner. The chain plans to expand beyond Manhattan into other boroughs and markets, and he said a future public listing is a long-term aspiration, though not a near-term plan.
Colin Welch, managing director and head of New York at TSG Consumer, said the firm was attracted to the business's loyal customer base and its status as a "New York institution." Welch said TSG plans to leave day-to-day management with Pineda and his team, while the firm will advise on future expansion. He cited Pura Vida Miami, which grew from locations in two states to seven since TSG announced its minority stake in 2025, as an example of the approach.
Los Tacos No. 1 was founded by Pineda, Tyler Sanders and Kyle Cameron, who moved from California to New York City in 2010 and opened the restaurant in 2013. The chain reports annual revenue growth of about 30% per year and serves roughly 1,200 customers a day. Pineda said the company's most significant cost increases have been in beef, limes, avocados and tomatoes. According to the US Department of Agriculture, beef prices were 5.9% higher in August 2026 than a year earlier and are forecast to rise 9.4% over the full year. Pineda said the company intends to absorb such pressures through efficiency rather than price increases or quality cuts. He noted that the carne asada taco has risen from $3.50 in 2013 to $5.95 today.
Pineda described the investor search as a way to scale in a "cautiously smart" manner. The chain plans to expand beyond Manhattan into other boroughs and markets, and he said a future public listing is a long-term aspiration, though not a near-term plan.
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