Gala Capital Partners (GCP), a distinguished investment firm specializing in emerging restaurant franchise brands, has announced its strategic acquisition of Rusty Taco from Inspire Brands. The financial details of this transaction remain undisclosed. Crucially, the existing Rusty Taco management team, under the leadership of Brendan Mauri, will not only continue to steer the brand but has also reinvested in the company alongside Gala Capital Partners.
Inspire Brands, who initially gained a majority stake in Rusty Taco as part of its Buffalo Wild Wings acquisition in 2018, played a pivotal role in revitalizing the brand. They successfully sharpened Rusty Taco’s market positioning and reintroduced the original “Rusty Taco” branding, honoring its heritage. This revitalization under Inspire’s guidance led to a system-wide growth exceeding 50%, with new locations achieving record-breaking opening sales figures. Furthermore, Rusty Taco’s resurgence was recently recognized by QSR magazine, naming it among the “Best Restaurant Franchising Deals for 2022.”
Christian Charnaux, Chief Growth Officer at Inspire, commented on the strategic rationale behind the sale: “Inspire’s operational model is expertly designed for large-scale brands, where we are seeing significant growth opportunities. We recognized that Rusty Taco, as an emerging brand, would thrive best under the ownership of a firm specifically focused on nurturing brands in this stage of development. After a comprehensive evaluation, Gala Capital Partners emerged as the ideal partner, and we are enthusiastic about supporting Rusty Taco’s continued success in their capable hands.”
Denise Fenton, Brand Director and Co-founder of Rusty Taco, expressed her optimism for the future: “For over a decade, Rusty Taco has been dedicated to cultivating a welcoming atmosphere where guests can savor freshly prepared, flavorful tacos, queso, and margaritas. We are thrilled to embark on the next chapter of this journey with Gala Capital Partners, a partner whose expertise in emerging brands is perfectly suited to guide our expansion.” Fenton also acknowledged Inspire Brands’ contribution, stating, “I want to thank Inspire Brands for their invaluable support and resources, which were instrumental in expanding our national presence, accelerating our growth trajectory, and boosting average unit volumes and overall brand success across all dayparts.”
Gala Capital Partners, the acquirer, is a Southern California-based private investment firm founded by Anand Gala, a seasoned restaurant operator, entrepreneur, and investor. The firm strategically invests in and acquires restaurant companies that have proven their concept, possess strong management teams, and demonstrate substantial growth potential. GCP’s investment focus centers on restaurant franchisors with unit counts between 25 and 500. Their current portfolio includes notable brands such as Dunn Brothers Coffee (acquired in 2022, 60 units), Cicis Pizza (acquired in 2021, 300 units), and MOOYAH Burgers, Fries & Shakes (acquired in 2017, 100 units).
Anand Gala shared his positive outlook on the acquisition: “We are incredibly excited to welcome Rusty Taco to the Gala Capital Partners family. We recognize the significant potential inherent in the brand and believe there is an immediate opportunity for expansion and enhanced performance.” Highlighting Rusty Taco’s strengths, Gala added, “Rusty Taco boasts compelling unit-level economics and strong investment returns, streamlined operations, and operates within a dynamic and growing dining segment with limited direct competition. Rusty Taco is poised to be a valuable and high-performing addition to our portfolio.”
Genesis Capital, LLC served as the exclusive financial advisor to Inspire Brands in this transaction, and DLA Piper LLP provided legal counsel.
About Gala Capital Partners, LLC
Gala Capital Partners, LLC (GCP), founded by Anand Gala, is a private investment firm concentrating on long-term investments in franchise brands with 25 to 500 locations. Anand Gala brings over 30 years of extensive experience in the franchise industry as an operator, developer, franchisee, investor, and board member for numerous restaurant franchise brands. Headquartered in Costa Mesa, CA, Gala Capital Partners has a proven history of developing innovative investment strategies for lower middle-market franchisors, with a particular emphasis on supporting founders and management teams in scaling their brands beyond initial growth phases. For further details, please visit www.galacapitalpartners.com.
About Inspire Brands
Inspire Brands is a multi-brand restaurant company with a global portfolio encompassing over 32,000 Arby’s, Baskin-Robbins, Buffalo Wild Wings, Dunkin’, Jimmy John’s, and SONIC Drive-In locations. Established in 2018 and headquartered in Atlanta, Georgia, Inspire Brands is committed to igniting and invigorating iconic brands. For more information, please visit InspireBrands.com.
