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🔴 PRIVATE EQUITY OWNED
Torchy's Tacos
tacos & Tex-Mex · Austin, TX
PE Firm
General Atlantic
Year Acquired
2017
“From a food truck on Bouldin Creek to a growth equity spreadsheet in Manhattan.”
The PE Playbook
- •General Atlantic took a minority stake in 2017 when Torchy's had 46 locations, then led a $400 million investment round in 2020 to become majority owner
- •Tripled from 46 to 131 locations in seven years, then started closing them — 13+ shuttered across 2025-2026 as the chain retreated from Ohio, Virginia, Georgia, Florida, and Arizona
- •Three CEOs in four years: founder Rypka sidelined for a 'professional CEO' in 2018, that guy retired abruptly in 2021, Rypka came back, then got replaced again in February 2025
- •Planned a $1 billion IPO in 2021 with Morgan Stanley and BofA underwriting — then quietly shelved it when the market cooled
Since the Acquisition
- ▸Major menu overhaul in August 2024 retired fan favorites including the jalapeno cheddar sausage, the #4 Breakfast Taco, the Ace of Spades, and the Lil' Nookies fried cookie dough dessert
- ▸Combi ovens installed across all 126 locations in 2024 to 'improve consistency' — replacing hands-on cooking with equipment designed for chain-scale uniformity
- ▸Breakfast tacos switched from homestyle potatoes to mass-produced tots in the 2024 menu revamp
- ▸Taco prices crept from the $3-4 range to $4.30-$5.80 per taco; a Change.org petition was launched against price increases as early as 2019
- ▸13+ locations closed in 2025-2026: full market exits from Columbus OH, Richmond VA, Kansas City MO, and retreats from Phoenix, Atlanta, and Central Florida
- ▸Founder Mike Rypka pushed out of CEO role twice — moved to the symbolic 'Chief Innovation Officer' title while a GoTo Foods veteran took over
Sources
- Torchy's Tacos and General Atlantic Announce Strategic Partnership — PR Newswire(2017-04-18)
- Torchy's Tacos sells $400 million stake — Nation's Restaurant News(2020-11-20)
- Torchy's Tacos revamps menu, introduces combi ovens — NRN(2024-08-28)
- Torchy's Tacos set to close 7 restaurants — Restaurant Business(2026-01-27)