Key Takeaways
- • TSG Consumer, the $14 billion-AUM private equity firm founded in 1986, has taken a stake in Los Tacos No. 1, the New York City Tijuana-style taco chain; terms and purchase price were not disclosed.
- • Los Tacos No. 1 serves about 1,200 customers per day at an average check of roughly $20, with annual revenue growing around 30% per year since opening.
- • Management plans to scale cautiously, with a Brooklyn location targeted before year-end 2026 and three more locations planned for 2027, while preserving quality and low prices.
- • CEO Christian Pineda publicly addressed customer backlash on Instagram after the deal, pledging no changes to menu, pricing of guacamole, or taco quality.
- • TSG's playbook cites Pura Vida Miami, which grew from locations in two states to seven since TSG's 2025 minority investment, as evidence of its expansion guidance model.
Summary
Los Tacos No. 1, a New York City Tijuana-style taco chain with 10 Manhattan locations and a sister concept, Los Mariscos, at Chelsea Market, has taken a private equity investment from TSG Consumer. According to Business Insider, the deal drew criticism on social media from fans who feared the chain would lose its distinctive flavor. Christian Pineda, the chain's CEO and cofounder, responded with an Instagram post published September 4 stating that the company would not add extra charges for guacamole, switch to horse meat, or alter the tacos.
Colin Welch, managing director and head of New York at TSG Consumer, said the firm was drawn to a loyal, "cultlike" customer base and the chain's status as a "New York institution." TSG declined to disclose the deal terms, the purchase price, or the size of its stake. The firm, founded in 1986 with $14 billion in assets under management, also holds investments in Pura Vida Miami, Crumbl, and Dutch Bros Coffee. Welch said TSG will let Pineda and his team run daily operations while providing guidance on expansion, citing Pura Vida Miami's growth from two states to seven locations since TSG's 2025 minority stake.
The chain, founded in 2013 by Pineda, Tyler Sanders, and Kyle Cameron, reports annual revenue growth of about 30% per year and serves roughly 1,200 customers daily at an average check near $20. Rising input costs, particularly beef, limes, avocados, and tomatoes, are pressuring margins. Pineda said the company will not raise prices or cut quality in response to temporary spikes. He cited USDA data showing beef prices 5.9% higher in August 2026 than a year earlier, with a forecast 9.4% increase for the full year. Pineda said carne asada tacos began at $3.50 in 2013 and now sell for $5.95.
Pineda described the partnership as a way to scale in a "cautiously smart" manner and expressed interest in eventually going public. The company plans a Brooklyn location before the end of 2026 and three additional openings in 2027.
Colin Welch, managing director and head of New York at TSG Consumer, said the firm was drawn to a loyal, "cultlike" customer base and the chain's status as a "New York institution." TSG declined to disclose the deal terms, the purchase price, or the size of its stake. The firm, founded in 1986 with $14 billion in assets under management, also holds investments in Pura Vida Miami, Crumbl, and Dutch Bros Coffee. Welch said TSG will let Pineda and his team run daily operations while providing guidance on expansion, citing Pura Vida Miami's growth from two states to seven locations since TSG's 2025 minority stake.
The chain, founded in 2013 by Pineda, Tyler Sanders, and Kyle Cameron, reports annual revenue growth of about 30% per year and serves roughly 1,200 customers daily at an average check near $20. Rising input costs, particularly beef, limes, avocados, and tomatoes, are pressuring margins. Pineda said the company will not raise prices or cut quality in response to temporary spikes. He cited USDA data showing beef prices 5.9% higher in August 2026 than a year earlier, with a forecast 9.4% increase for the full year. Pineda said carne asada tacos began at $3.50 in 2013 and now sell for $5.95.
Pineda described the partnership as a way to scale in a "cautiously smart" manner and expressed interest in eventually going public. The company plans a Brooklyn location before the end of 2026 and three additional openings in 2027.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.