As more PE firms invest in food establishments, people are bemoaning the ‘same-ification’ of NYC’s restaurant sceneLos Tacos No 1 is a classic New York success story. After the Mexican-style taco joint opened in 2013, it quickly became a critic’s pick in the city’s paper of record, drawing long lines and a devoted lunchtime crowd.
As word spread about its juicy al pastor and handmade tortillas, it expanded to nine locations. Then, this September, bad news struck: Los Tacos No 1 had received an undisclosed amount of funding from private equity firm TSG Consumer.According to a press release, this cash would help Los Tacos pursue “thoughtful, founder-led growth”.
Customers were not so sure. Social media posts quickly declared “the beginning of the end” for the chain, half-jokingly anticipating tiny portions of bad food. Continue reading…