Tijuana Flats
Fast casual Tex-Mex restaurant chain known for hot sauce bar and fresh Mexican food.
PE-OWNED
Acquired by Ares Management2014-03-01
What Made It Great
Fresh Tex-Mex fast casual dining with extensive hot sauce selection and bold flavors
What PE Will Likely Do
Portion sizes for popular menu items like burritos, tacos, and quesadillas will be reduced while prices remain the same or increase
The restaurant will begin substituting lower-quality, cheaper ingredients in their sauces, marinades, and fillings, compromising the fresh, flavorful Tex-Mex experience
The variety of hot sauces and specialty toppings available at the signature hot sauce bar will be significantly reduced to focus on higher-margin items
Franchise fees and operational requirements for Tijuana Flats locations will increase, leading to some franchisees exiting the system and store closures
Expected Timeline
“0 to 6 months months”
Minor changes to portion sizes, ingredient quality, and hot sauce bar selection begin, but may not be immediately noticeable to regular customers
“6 to 12 months months”
Noticeable reduction in portion sizes and quality degradation of sauces, fillings, and marinades becomes apparent to customers
“12 to 24 months months”
Regular customers start to bemoan the loss of the signature Tijuana Flats experience as the hot sauce bar dwindles, portions shrink further, and food quality continues to decline
“24 to 36 months months”
Accelerated store closures as franchise model becomes less viable, brand reputation is significantly damaged among loyal customers
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Enjoy Tijuana Flats while you can, as the dining experience is likely to deteriorate significantly in the next 1-2 years
If you're a frequent Tijuana Flats customer, consider providing feedback to the company about changes you notice in food quality, portion sizes, and the hot sauce bar
Seek out alternative local Tex-Mex restaurants that may be able to provide a similar fresh, flavorful experience as Tijuana Flats declines
Alternatives
Publicly traded restaurant group
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