October 22, 2024 • 23 mins
Dive into the purest flavors of Mexico with our latest episode of Retail Intel! Join host Brian Sheehan and Bhagyesh Patel, co-founder and CEO of Taco Pros, as they explore the enticing world of Mexican market street foods.Inspired by the gastronomic art of Mexico, Taco Pros aims to transport you to the flavors of Mexican Tianguis (market) street foods. They take pride in investing in quality ingredients to ensure customers get the great taste they are famous for.
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Brian Sheehan (00:04):
Welcome to Retail Intel, the podcast where we
dive deep into the dynamic worldof commercial real estate.
I'm your host, brian Sheehan,and I'm thrilled to be your
guide on this journey throughthe bustling streets of retail,
the aisles of shopping centersand the world of commercial
property investment.
With me today is Bagash Patel,co-founder and CEO of Taco Pros.
(00:28):
Mexican Cochina Inspired by thegastronomic art of Mexico, taco
Pros aims to transport you tothe flavors of Mexican market
street foods and has a devotedfollowing in the Midwest.
Taco Pros is expandingnationally and if you haven't
heard of them yet, you soon will.
I'm excited to learn more,bagash, welcome.
Bhagyesh Patel (00:49):
Thank you.
Thank you, Brian.
Brian Sheehan (00:51):
Hey, so I'd love to start with your background.
What were you doing beforelaunching Taco Pros?
Bhagyesh Patel (00:58):
So I always a food person.
A food person, I've always beeninto the food industry.
I started my journey in 2006with Subway.
I was working as a sandwichartist in Subway.
I did that for many years andthen I became a partner owner in
(01:20):
one of the stores in Chicagoand then again I managed for
another five, six years and then, you know, I always wanted to
do something our own.
So at that time we started anIndian concept, indian
restaurant and we did reallywell and after that, running for
a few years, you know, wedecided to start a Taco Pros.
(01:43):
Few years, you know, we decidedto start a Taco Pros.
But, just like I said, I'vealways been in the food industry
since 2006.
So, you know, I wanted toalways do something my own.
Brian Sheehan (01:54):
That's awesome.
So talk about the jump from, Iguess, the Indian concept to
Taco Pros.
What attracted you to Mexicanfoods?
What attracted you to Mexican?
Bhagyesh Patel (02:03):
foods.
Actually it was an accident.
The way it happened was mypartner, victor.
He used to do a constructionfor me and then he was so tired
doing construction for so long,he's been in construction
industry for a very long time.
Then he came to me one day.
(02:25):
He's like hey, dude, I want toopen a Mexican restaurant, let's
do it together.
And I said, boy, I have no ideaabout Mexican food.
And he's like, hey, I do, youknow I can do it.
And I said, yeah, sure, fine,let's try it.
And then we got the space, weleased it and we opened the
store and you know, we starteddoing really good.
So that's how we founded TacoPros.
Brian Sheehan (02:47):
You talked about this broad background of
experience in the restaurantbusiness.
What is it that you love aboutfast, casual restaurants or the
restaurant business generally?
Bhagyesh Patel (02:58):
So you know food I think so is continually
evolving.
I think so it's continuingevolving.
And, as a human, if you want todo something and you want to
enjoy your time with somebodyelse, there's only a few places
you can go, Right, and food isone of them.
So you always want to go torestaurants, have a good time,
(03:20):
talk about your life, what'sgoing on, Forget about the
problems, Right, and that's whatthe restaurant does to people.
And I say you know that's howwe of course we are in food
industry, A fast-scheduledrestaurant, because we didn't
want to do full sit-down whereyou know, you got to pay $5 for
chips and salsa.
I mean, you get chips and salsafor free, but you got to pay
(03:40):
$25 for enchiladas, right, butwe don't believe in that.
We like let's have it aauthentic food at very
reasonable price, where peoplecan come together, as with
family, friends, and they canhave a good time and they enjoy
the good food.
Brian Sheehan (03:56):
Something you said there really sparks, I
think, the potential for adeeper dive into this whole
category.
But you know, growing up andI'm just such a huge fan of taco
pros generally, I want to talkabout your concept here in a
second.
But the differentiation betweencharging for chips and salsa, I
feel like, is something that isrelatively new.
(04:19):
Maybe in certain parts of thecountry or world that's
something that's always existed,but I feel like that's
something that's just come aboutin the last maybe five or 10
years.
Is that true?
Bhagyesh Patel (04:29):
Yep, that's true .
So again, going back, me and mypartner say OK, let's open a
Mexican restaurant.
We finished the constructionand then I asked him.
I said, hey, let's startworking on the food and I can
bring my friends, family,everybody can try the food.
And then he said dude, I don'tknow how to make food.
I said what do you mean?
You don't know.
He's like yeah, my mom knows.
(04:50):
I said, bro, where is your mom?
He's like oh, she's in Mexico.
I said, no way.
And then this has literallyhappened we call her his mom
from Mexico to US.
God forbid, blessing she ableto come here.
And then she came and you knowshe showed us all the recipes
(05:10):
and of course she was using herhand Right.
And we like, ok, mother, youcan't do that, mom, you know,
let me write it down what goesin what.
So we wrote it down everysingle recipe.
She stayed with us for sixmonths here and she like, taught
us everything, victor, hisbrother, sister, including me.
You know we learn a lot in thatsix months and that's how we
(05:35):
wrote it down the recipe andthat's how we came up with taco
pros.
Victor's mom had a restaurant inmexico, so she had a lot of
experience and she knows thefood and that's how we started.
And when I ate food and when myfriend ate food, they like dude
, this is something verydifferent because everything is
very authentic.
(05:55):
Right, and I know this wordthrows a lot out there authentic
Mexican, authentic Mexican.
We learned straight from momand we didn't know anything else
.
You know, we didn't know howyou can do a fusion.
You know it was just pureauthentic Mexican food.
And we opened the store andactually, you know, people
(06:16):
started appreciating.
They're like dude, this isdifferent.
They're like oh, I didn't knowI can get Mexican sandwich
tortas in a restaurant like this.
I didn't know I can get Mexicansandwich tortas in a restaurant
like this.
I didn't know I can getenchiladas, you know, and that's
what inspires I say you knowwhat?
Let's see People liking it.
We should start expanding alittle bit.
And that's how Taco Pro started.
Brian Sheehan (06:36):
It's what inspired me to initially reach
out to make contact with youguys for space in one of our
shopping centers.
Bhagyesh Patel (06:44):
But I guess I'm curious where her restaurant is
located in mexico so she had arestaurant with her dad uh,
zakatakas, right, if you know umthe area, so she's from there
and she had a restaurant there.
So she told me story.
She's like when I was baby uh,you know, my dad and mom used to
(07:04):
take me and they made me do awork, right, like it was no
child labor back then.
You know, you help your family,so she was like I was doing
tortilla that's how I startedwhen I was six, seven years old.
But her story was veryinspiring too.
So she learned from her parentsand then it's a generation, you
know, and then we are blessedenough that she's able to teach
(07:28):
us everything.
Brian Sheehan (07:29):
And would you say that the style of cuisine is
specific or comes from thatregion, or is it a fusion style?
I mean, I'm sure a lot of itwas influenced by where she was
from.
But I guess I'm curious likehas the menu evolved over time?
Did you guys put your ownunique spin on some of those
(07:52):
flavors that come from thatregion?
Bhagyesh Patel (07:56):
So actually, no, we did not.
We are focusing more onexpression at the moment, but at
the same same time, our food isworking really good and people
are loving it.
So you know if it's working,why you want to change it right.
So we did not do anything.
Fusion we have a very simplemenu fine meat, authentic sauce
(08:17):
and salsa.
We do, and we like to keep itthis way.
I know there's a lot of Mexicanfood nowadays.
They do a lot of fusion, butsomehow, you know, we like what,
we do it and we are planning tokeep it that way.
Brian Sheehan (08:31):
Keep it authentic .
Bhagyesh Patel (08:32):
Keeping authentic.
Brian Sheehan (08:34):
I know there's probably a few other things that
make Taco Pros unique and Ikind of wanted to talk a little
bit about that, because when youwalk into a Taco Pros
restaurant it doesn't feel likea lot of other places that I've
been before.
Maybe talk a little bit aboutthat.
What makes Taco Pros unique?
Bhagyesh Patel (08:51):
Yeah.
So you know, taco Pro, like we,are a fast-scheduled restaurant
and, as of today, most of thepart of the country, if you want
to eat Mexican food, authenticMexican food, you have to go to
those full sit-down Mexicanrestaurant, right, where they're
going to give you, like I said,chips and salsa at no cost, but
they're going to make you waitone hour.
You've got to pay $25 forenchiladas and then tortas,
(09:17):
right, $15.
And there are some taquerias,then mom and pop right, they
were really good food, but youknow they don't have a ambience,
sometimes they don't have aseating.
You don't want to take familythere, right?
So what we did?
We come up with the rightbalance.
So we create a concept whereyou get authentic food in fast
schedule setting, where you walkin, you place the order, you
(09:40):
sit down and then we will bringfood to your table, so you don't
have to get up.
And then you eat, you enjoy,everything is disposable.
You throw the plates you knowit's a eco-friendly recycle
plates, right, and then youleave, right, but for that we
don't charge you extra.
It's very fast schedule so youdon't have to spend one hour.
We love if you stay one hour,but you know you don't have to
(10:02):
spend that much time, sure, comeenjoy food with friends and
family, and and that's what weare focusing on and that's what
makes us a little unique ourambience is really good.
We get a lot of compliments ourdesign, so people come and feel
very comfy when they come toTaco Bros.
Brian Sheehan (10:19):
Is this a corporate or a franchise
business model?
Bhagyesh Patel (10:22):
So we were very blessed.
You know, we opened the storeand we started getting inquiry
about franchisee from theprobably first month.
But we end up not doing itbecause you know we have a
belief that any store you openyou have to operate as a
corporate for three years 1,000days before you can start
(10:44):
actually opening franchiseestores.
So we had a.
We opened first, second andthird store our own in first
three years we run it, weoperate it and we see it
successful and then we startdoing franchisee model.
But we do have a few corporatestores as well.
So it all depends on locationsand if we have a franchise in
(11:05):
that area then we of course giveit to franchisee as a first
option, but if you don't haveanybody, then we can do as a
corporate.
Brian Sheehan (11:13):
That's great.
So, going forward, you're goingto be opening a mix of
corporate locations andfranchise locations, depending
on the market.
Bhagyesh Patel (11:20):
Yep.
Brian Sheehan (11:20):
Let's talk about the square foot size range or
footprint of a typical store.
What's your sweet spot,size-wise?
Bhagyesh Patel (11:27):
So we love to have 1,700 to 2,000 square feet.
That's our sweet spot.
We cannot go below 1,500because then it's too cramped.
So smallest we do have 1,500.
If the plaza is really nice wecan find a space.
Then we try to squeeze in 1,500.
But our ideal size is 1,700 to2,000 square feet.
Brian Sheehan (11:48):
Okay, and how many current open locations are
there in the US?
Bhagyesh Patel (11:52):
So currently we have 20 stores that open in.
Brian Sheehan (11:57):
US and how many will be open by the end of 2024?
.
Are there any new openingsplanned this year?
Bhagyesh Patel (12:03):
Yes, so we have about seven or eight opening
this year alone.
So we're opening every otherweek now for until end of the
year.
So we have a.
We will have probably 28, 30 byend of the 2024.
Brian Sheehan (12:17):
That's amazing.
How many openings do you haveplanned for 2025?
Bhagyesh Patel (12:22):
Oh boy, we signed 40 locations.
They're under development rightnow four zero.
Wow.
And we gave out 90 totalfranchises with other master
agreements.
Basically, people come andbought 20 stores and 10 stores
at a time.
So we have a 90 locationalready sold and 60 is under
(12:46):
development right now.
Brian Sheehan (12:47):
That's awesome.
What are your growth goals forTacoPros over the next, say,
five years?
Bhagyesh Patel (12:53):
So next five years as a company.
The next say five years.
So next five years as a company.
You know, when we started acompany our goal was to do 100
stores by 2030.
And I think so we'll achievethat by 2025.
So now as a company, our goalto do 500 by 2030.
And we are very optimisticWe'll be able to get those store
(13:15):
in next five, six years.
Brian Sheehan (13:18):
Amazing.
Where are you growing?
Are you focused on specifictarget markets for future
locations?
Bhagyesh Patel (13:26):
So until now you know we have we were growing
only in Midwest region, inWisconsin, Illinois and
northwest Indiana, because wewanted to make sure we support
our franchisees and we can alsolearn about our model, and it's
one and two hour drive so it'seasier to go there make sure
everything is happening the wayit's supposed to be.
And we're doing this for thelast year and a half.
(13:48):
This next six months we're alsoplanning to expand only in this
region, Starting 2025,.
We just worked out with alogistic partner, US Food, and
they were able to supply ourproprietary items and everything
else throughout the US.
So next we're actually going inOhio.
(14:09):
We have a guy who just signed25 locations, so he's opening in
Ohio.
We are growing in Atlanta,Maryland, New Jersey.
That's our next market we areexpanding to.
Brian Sheehan (14:21):
What are some of the key factors you're looking
for when you evaluate apotential property?
We talked about your robusttravel schedule here.
Who do you like to be near?
How do you go about selecting asite?
Bhagyesh Patel (14:36):
so we always like to be near some other food
options.
We are not those guys where welike to stay away from food.
I feel like when you are withina food distance, people intend
to travel and then they can pickwhat they like.
And we also like some biganchor stores if those are
nearby.
You know, like Walmart orMariano's that we have here in
(14:59):
Midwest region, kroger, probablyon the East Coast, if there is
a bigger anchor stores are inthe plaza with other food.
That's the ideal location forus.
Brian Sheehan (15:09):
When we first met , I think we initially looked at
and leased up some inlinespaces.
Has that changed?
Are you now looking for end capspaces?
Do you need a drive-through orare you still looking to take
some inline opportunities?
Bhagyesh Patel (15:25):
No, so we do take some inline opportunities.
If the plaza is right, ifthings are like we really like
the area, then we have noproblem taking inline.
Do we prefer end-CAP?
Yes, we only currently have onedrive-through location and
we're testing it, how it'sworking and how can we make it
better.
But we do have some futurelocation coming up.
(15:49):
Those will be a drive-throughas well.
Brian Sheehan (15:51):
Are you guys looking at any new construction
opportunities?
Are you doing any ground updevelopment?
Bhagyesh Patel (15:57):
Yes, we actually currently talking to a couple
of the areas and spaces that wehope to do ground up.
Do we love to do it at thismoment?
No, I think it takes a lot oftime and energy and we want to
focus our energy and time intogrowing rather than developing
something.
So right now that's not ourpriority.
(16:18):
But if something comes, youknow, and if some deal is right,
then we can.
We can do that as well.
Brian Sheehan (16:25):
You mentioned a fast, casual type of restaurant
and, for anybody that hasn'tbeen inside of one of your
stores yet, is there anythingunique to a TakaPro's build out
in terms of the utilities orHVAC, electrical water?
Bhagyesh Patel (16:40):
Our build-out is pretty simple.
It looks good, but to build outsomething, the store like Taco
Bell.
It doesn't cost you as much andit's very simple to build out
and very quickly.
So in fact, all the generalcontractors love us because they
do a lot of the constructionwith the big brand and it's
sometimes very complicated,overcomplicated.
(17:01):
We don't do that.
But one thing we do have in ourstore as of right now we, we
love art, we love design.
Uh, so we have actually acouple of the artists that go to
every taco pros, um, and theyactually do a draw artwork of
mountain and cactus and it's ahand hand draw, right, like they
(17:23):
paint everything with the handand we like that.
You know I'm not a big guy ofwallpaper and just no human
touch, right.
So that's what we are doingright now.
So if you go to any taco place,you see the design that in
there is done by one of thelocal artists from the city we
love too.
Brian Sheehan (17:42):
I think that's such a special aspect of your
brand identity and unique, Ithink, in this space where
everything's become kind ofhomogenized to a certain extent.
Bhagyesh Patel (17:55):
Yep, and people appreciate that.
When they come in and they findout like local resident people,
they're like, oh, these artistsdid this.
We're like, yeah.
They're like, oh, dude, itlooks so good.
And we think sometimes peopledo not notice that stuff, but
they do and they also appreciatesupporting local artists and
(18:16):
bringing artwork to thecommunity.
Brian Sheehan (18:18):
I'm curious, I guess, how you go about finding
those local artists.
Bhagyesh Patel (18:25):
It's hard and now it's easy thanks to social
media and luckily, you know, allthese artists has a friend in
different states.
So now every state we areopening, we are trying to ask
them hey, do you have somebodylocally there?
And most of the time they havesomeone, if not meantime, they
are willing to travel and do theartwork there.
(18:47):
And I know once we do it,people will come eat and they
will like hey, dude, I do thistype of work, would you mind
giving me a next project?
I'm like yeah, let's do that.
So that's the plan right now.
Brian Sheehan (19:00):
It could really happen organically through the
power of social media.
Yes, For anyone that wants topresent a site to you and your
team.
What's the best way to go aboutthat?
Bhagyesh Patel (19:09):
So if somebody would like to present a site,
then go to the website.
You know, just there is acontact form.
You fill that out, say, hey, Ihave a site and we have a lot of
people reach out to us, andthat email I personally get it,
my team also gets it, and thenwe reach out to those people and
(19:30):
then you know we start fromthere.
Brian Sheehan (19:33):
That's great.
And can we talk AUV for asecond?
What's the average sales volumefor Taco Pros?
Bhagyesh Patel (19:42):
Yeah, of course I mean you would.
Uh, I would talk about thecorporate store that we have,
right, because that's I don'thave to get a permission from
anyone.
But our current taco pros, aovsare, you know, we do, about one
plus million dollar, uh, eventhe small footprint, about 15 to
1800 square feet, uh, and andwe have some store that does
(20:03):
about two plus near two milliondollar sales as well and with no
dining, you know, just carryout.
We have a sum with the bar,small like a margarita and stuff
, and so our goal as a companywe want to have average one plus
million AV for all our stores.
Brian Sheehan (20:21):
That's excellent, begash.
Last question Taco Pros has, Inoticed, a rewards program and
I'm curious how important thatis.
You can talk about thepercentage of sales volume
that's generated online versusin-store, and have you seen a
shift to more in-store pickupversus, say, delivery?
Bhagyesh Patel (20:45):
Yes, I think so.
After we launched the rewardprogram and the purpose was the
reward program we want to saythank you to our loyal customers
.
They come to our store, spend alot of money every week, every
month, and this is a small thankyou from us.
So we give them a point Intheir birthday.
(21:07):
We give them a point, we give a, but in their birthday we give
free entry and randomly, we sendout a lot, of, a lot of
promotion and exclusive billjust for the members.
Uh, it's, people love that.
They appreciate, you know,whenever they get the message or
promo from the corporate team,our team, and also that helps us
to bring more in-store revenueand pick up from our website,
(21:28):
because they get a points whenthey place an order with us.
Right, and before used to be,you know, we didn't have this
platform so they place an orderfrom other parties and they
don't get points.
Now we have a system so they doget a points and they like that
Right now.
I want to say about 45% isonline, 55%.
(21:50):
It's 60% in-store right now,but our online presence is very
strong as well, so we are reallygood with both online and
in-store sales.
Brian Sheehan (22:00):
That online versus in-store are you seeing
any kind of sales?
That online versus in-store areyou seeing any kind of you?
Bhagyesh Patel (22:09):
know dramatic change in that, or is that
staying pretty consistent?
I want to say staying prettyconsistent.
We have more takeout orders.
I noticed in the last year anda half more and more people are
ordering takeout and I think so.
Our food also travels very well.
So you know, you order tacosand you eat after an hour.
It still stays the same right.
So, people, because of theirreason, we're seeing some small
(22:30):
percentage increase on deliveryand takeout orders.
Brian Sheehan (22:34):
Okay, well, that's amazing.
What a great story.
And, bagash, it was greatspeaking with you today.
Thank you for joining me onRetail Intel.
Be on the lookout for new TacoPros locations opening near you
and be sure to check them out onInstagram at taco underscore
pros.
Whether you're an aspiring realestate mogul, a seasoned pro or
(22:57):
simply curious about the placeswhere we shop, dine, play and
work, this podcast is yourall-access pass to the world of
commercial real estate.
If you're interested in being apart of the Retail Intel
podcast, connect with me onLinkedIn or send a message to
nationalaccounts atphillipsedisoncom.
If you want to hear more aboutnew and expanding brands like
(23:18):
Taco Pros, keep tuning in toRetail Intel and please
subscribe, follow, like andrepost.
Talk to you next time.
Welcome to Retail Intel, the podcast where we
dive deep into the dynamic worldof commercial real estate.
I'm your host, brian Sheehan,and I'm thrilled to be your
guide on this journey throughthe bustling streets of retail,
the aisles of shopping centersand the world of commercial
property investment.
With me today is Bagash Patel,co-founder and CEO of Taco Pros.
(00:28):
Mexican Cochina Inspired by thegastronomic art of Mexico, taco
Pros aims to transport you tothe flavors of Mexican market
street foods and has a devotedfollowing in the Midwest.
Taco Pros is expandingnationally and if you haven't
heard of them yet, you soon will.
I'm excited to learn more,bagash, welcome.
Bhagyesh Patel (00:49):
Thank you.
Thank you, Brian.
Brian Sheehan (00:51):
Hey, so I'd love to start with your background.
What were you doing beforelaunching Taco Pros?
Bhagyesh Patel (00:58):
So I always a food person.
A food person, I've always beeninto the food industry.
I started my journey in 2006with Subway.
I was working as a sandwichartist in Subway.
I did that for many years andthen I became a partner owner in
(01:20):
one of the stores in Chicagoand then again I managed for
another five, six years and then, you know, I always wanted to
do something our own.
So at that time we started anIndian concept, indian
restaurant and we did reallywell and after that, running for
a few years, you know, wedecided to start a Taco Pros.
(01:43):
Few years, you know, we decidedto start a Taco Pros.
But, just like I said, I'vealways been in the food industry
since 2006.
So, you know, I wanted toalways do something my own.
Brian Sheehan (01:54):
That's awesome.
So talk about the jump from, Iguess, the Indian concept to
Taco Pros.
What attracted you to Mexicanfoods?
What attracted you to Mexican?
Bhagyesh Patel (02:03):
foods.
Actually it was an accident.
The way it happened was mypartner, victor.
He used to do a constructionfor me and then he was so tired
doing construction for so long,he's been in construction
industry for a very long time.
Then he came to me one day.
(02:25):
He's like hey, dude, I want toopen a Mexican restaurant, let's
do it together.
And I said, boy, I have no ideaabout Mexican food.
And he's like, hey, I do, youknow I can do it.
And I said, yeah, sure, fine,let's try it.
And then we got the space, weleased it and we opened the
store and you know, we starteddoing really good.
So that's how we founded TacoPros.
Brian Sheehan (02:47):
You talked about this broad background of
experience in the restaurantbusiness.
What is it that you love aboutfast, casual restaurants or the
restaurant business generally?
Bhagyesh Patel (02:58):
So you know food I think so is continually
evolving.
I think so it's continuingevolving.
And, as a human, if you want todo something and you want to
enjoy your time with somebodyelse, there's only a few places
you can go, Right, and food isone of them.
So you always want to go torestaurants, have a good time,
(03:20):
talk about your life, what'sgoing on, Forget about the
problems, Right, and that's whatthe restaurant does to people.
And I say you know that's howwe of course we are in food
industry, A fast-scheduledrestaurant, because we didn't
want to do full sit-down whereyou know, you got to pay $5 for
chips and salsa.
I mean, you get chips and salsafor free, but you got to pay
(03:40):
$25 for enchiladas, right, butwe don't believe in that.
We like let's have it aauthentic food at very
reasonable price, where peoplecan come together, as with
family, friends, and they canhave a good time and they enjoy
the good food.
Brian Sheehan (03:56):
Something you said there really sparks, I
think, the potential for adeeper dive into this whole
category.
But you know, growing up andI'm just such a huge fan of taco
pros generally, I want to talkabout your concept here in a
second.
But the differentiation betweencharging for chips and salsa, I
feel like, is something that isrelatively new.
(04:19):
Maybe in certain parts of thecountry or world that's
something that's always existed,but I feel like that's
something that's just come aboutin the last maybe five or 10
years.
Is that true?
Bhagyesh Patel (04:29):
Yep, that's true .
So again, going back, me and mypartner say OK, let's open a
Mexican restaurant.
We finished the constructionand then I asked him.
I said, hey, let's startworking on the food and I can
bring my friends, family,everybody can try the food.
And then he said dude, I don'tknow how to make food.
I said what do you mean?
You don't know.
He's like yeah, my mom knows.
(04:50):
I said, bro, where is your mom?
He's like oh, she's in Mexico.
I said, no way.
And then this has literallyhappened we call her his mom
from Mexico to US.
God forbid, blessing she ableto come here.
And then she came and you knowshe showed us all the recipes
(05:10):
and of course she was using herhand Right.
And we like, ok, mother, youcan't do that, mom, you know,
let me write it down what goesin what.
So we wrote it down everysingle recipe.
She stayed with us for sixmonths here and she like, taught
us everything, victor, hisbrother, sister, including me.
You know we learn a lot in thatsix months and that's how we
(05:35):
wrote it down the recipe andthat's how we came up with taco
pros.
Victor's mom had a restaurant inmexico, so she had a lot of
experience and she knows thefood and that's how we started.
And when I ate food and when myfriend ate food, they like dude
, this is something verydifferent because everything is
very authentic.
(05:55):
Right, and I know this wordthrows a lot out there authentic
Mexican, authentic Mexican.
We learned straight from momand we didn't know anything else
.
You know, we didn't know howyou can do a fusion.
You know it was just pureauthentic Mexican food.
And we opened the store andactually, you know, people
(06:16):
started appreciating.
They're like dude, this isdifferent.
They're like oh, I didn't knowI can get Mexican sandwich
tortas in a restaurant like this.
I didn't know I can get Mexicansandwich tortas in a restaurant
like this.
I didn't know I can getenchiladas, you know, and that's
what inspires I say you knowwhat?
Let's see People liking it.
We should start expanding alittle bit.
And that's how Taco Pro started.
Brian Sheehan (06:36):
It's what inspired me to initially reach
out to make contact with youguys for space in one of our
shopping centers.
Bhagyesh Patel (06:44):
But I guess I'm curious where her restaurant is
located in mexico so she had arestaurant with her dad uh,
zakatakas, right, if you know umthe area, so she's from there
and she had a restaurant there.
So she told me story.
She's like when I was baby uh,you know, my dad and mom used to
(07:04):
take me and they made me do awork, right, like it was no
child labor back then.
You know, you help your family,so she was like I was doing
tortilla that's how I startedwhen I was six, seven years old.
But her story was veryinspiring too.
So she learned from her parentsand then it's a generation, you
know, and then we are blessedenough that she's able to teach
(07:28):
us everything.
Brian Sheehan (07:29):
And would you say that the style of cuisine is
specific or comes from thatregion, or is it a fusion style?
I mean, I'm sure a lot of itwas influenced by where she was
from.
But I guess I'm curious likehas the menu evolved over time?
Did you guys put your ownunique spin on some of those
(07:52):
flavors that come from thatregion?
Bhagyesh Patel (07:56):
So actually, no, we did not.
We are focusing more onexpression at the moment, but at
the same same time, our food isworking really good and people
are loving it.
So you know if it's working,why you want to change it right.
So we did not do anything.
Fusion we have a very simplemenu fine meat, authentic sauce
(08:17):
and salsa.
We do, and we like to keep itthis way.
I know there's a lot of Mexicanfood nowadays.
They do a lot of fusion, butsomehow, you know, we like what,
we do it and we are planning tokeep it that way.
Brian Sheehan (08:31):
Keep it authentic .
Bhagyesh Patel (08:32):
Keeping authentic.
Brian Sheehan (08:34):
I know there's probably a few other things that
make Taco Pros unique and Ikind of wanted to talk a little
bit about that, because when youwalk into a Taco Pros
restaurant it doesn't feel likea lot of other places that I've
been before.
Maybe talk a little bit aboutthat.
What makes Taco Pros unique?
Bhagyesh Patel (08:51):
Yeah.
So you know, taco Pro, like we,are a fast-scheduled restaurant
and, as of today, most of thepart of the country, if you want
to eat Mexican food, authenticMexican food, you have to go to
those full sit-down Mexicanrestaurant, right, where they're
going to give you, like I said,chips and salsa at no cost, but
they're going to make you waitone hour.
You've got to pay $25 forenchiladas and then tortas,
(09:17):
right, $15.
And there are some taquerias,then mom and pop right, they
were really good food, but youknow they don't have a ambience,
sometimes they don't have aseating.
You don't want to take familythere, right?
So what we did?
We come up with the rightbalance.
So we create a concept whereyou get authentic food in fast
schedule setting, where you walkin, you place the order, you
(09:40):
sit down and then we will bringfood to your table, so you don't
have to get up.
And then you eat, you enjoy,everything is disposable.
You throw the plates you knowit's a eco-friendly recycle
plates, right, and then youleave, right, but for that we
don't charge you extra.
It's very fast schedule so youdon't have to spend one hour.
We love if you stay one hour,but you know you don't have to
(10:02):
spend that much time, sure, comeenjoy food with friends and
family, and and that's what weare focusing on and that's what
makes us a little unique ourambience is really good.
We get a lot of compliments ourdesign, so people come and feel
very comfy when they come toTaco Bros.
Brian Sheehan (10:19):
Is this a corporate or a franchise
business model?
Bhagyesh Patel (10:22):
So we were very blessed.
You know, we opened the storeand we started getting inquiry
about franchisee from theprobably first month.
But we end up not doing itbecause you know we have a
belief that any store you openyou have to operate as a
corporate for three years 1,000days before you can start
(10:44):
actually opening franchiseestores.
So we had a.
We opened first, second andthird store our own in first
three years we run it, weoperate it and we see it
successful and then we startdoing franchisee model.
But we do have a few corporatestores as well.
So it all depends on locationsand if we have a franchise in
(11:05):
that area then we of course giveit to franchisee as a first
option, but if you don't haveanybody, then we can do as a
corporate.
Brian Sheehan (11:13):
That's great.
So, going forward, you're goingto be opening a mix of
corporate locations andfranchise locations, depending
on the market.
Bhagyesh Patel (11:20):
Yep.
Brian Sheehan (11:20):
Let's talk about the square foot size range or
footprint of a typical store.
What's your sweet spot,size-wise?
Bhagyesh Patel (11:27):
So we love to have 1,700 to 2,000 square feet.
That's our sweet spot.
We cannot go below 1,500because then it's too cramped.
So smallest we do have 1,500.
If the plaza is really nice wecan find a space.
Then we try to squeeze in 1,500.
But our ideal size is 1,700 to2,000 square feet.
Brian Sheehan (11:48):
Okay, and how many current open locations are
there in the US?
Bhagyesh Patel (11:52):
So currently we have 20 stores that open in.
Brian Sheehan (11:57):
US and how many will be open by the end of 2024?
.
Are there any new openingsplanned this year?
Bhagyesh Patel (12:03):
Yes, so we have about seven or eight opening
this year alone.
So we're opening every otherweek now for until end of the
year.
So we have a.
We will have probably 28, 30 byend of the 2024.
Brian Sheehan (12:17):
That's amazing.
How many openings do you haveplanned for 2025?
Bhagyesh Patel (12:22):
Oh boy, we signed 40 locations.
They're under development rightnow four zero.
Wow.
And we gave out 90 totalfranchises with other master
agreements.
Basically, people come andbought 20 stores and 10 stores
at a time.
So we have a 90 locationalready sold and 60 is under
(12:46):
development right now.
Brian Sheehan (12:47):
That's awesome.
What are your growth goals forTacoPros over the next, say,
five years?
Bhagyesh Patel (12:53):
So next five years as a company.
The next say five years.
So next five years as a company.
You know, when we started acompany our goal was to do 100
stores by 2030.
And I think so we'll achievethat by 2025.
So now as a company, our goalto do 500 by 2030.
And we are very optimisticWe'll be able to get those store
(13:15):
in next five, six years.
Brian Sheehan (13:18):
Amazing.
Where are you growing?
Are you focused on specifictarget markets for future
locations?
Bhagyesh Patel (13:26):
So until now you know we have we were growing
only in Midwest region, inWisconsin, Illinois and
northwest Indiana, because wewanted to make sure we support
our franchisees and we can alsolearn about our model, and it's
one and two hour drive so it'seasier to go there make sure
everything is happening the wayit's supposed to be.
And we're doing this for thelast year and a half.
(13:48):
This next six months we're alsoplanning to expand only in this
region, Starting 2025,.
We just worked out with alogistic partner, US Food, and
they were able to supply ourproprietary items and everything
else throughout the US.
So next we're actually going inOhio.
(14:09):
We have a guy who just signed25 locations, so he's opening in
Ohio.
We are growing in Atlanta,Maryland, New Jersey.
That's our next market we areexpanding to.
Brian Sheehan (14:21):
What are some of the key factors you're looking
for when you evaluate apotential property?
We talked about your robusttravel schedule here.
Who do you like to be near?
How do you go about selecting asite?
Bhagyesh Patel (14:36):
so we always like to be near some other food
options.
We are not those guys where welike to stay away from food.
I feel like when you are withina food distance, people intend
to travel and then they can pickwhat they like.
And we also like some biganchor stores if those are
nearby.
You know, like Walmart orMariano's that we have here in
(14:59):
Midwest region, kroger, probablyon the East Coast, if there is
a bigger anchor stores are inthe plaza with other food.
That's the ideal location forus.
Brian Sheehan (15:09):
When we first met , I think we initially looked at
and leased up some inlinespaces.
Has that changed?
Are you now looking for end capspaces?
Do you need a drive-through orare you still looking to take
some inline opportunities?
Bhagyesh Patel (15:25):
No, so we do take some inline opportunities.
If the plaza is right, ifthings are like we really like
the area, then we have noproblem taking inline.
Do we prefer end-CAP?
Yes, we only currently have onedrive-through location and
we're testing it, how it'sworking and how can we make it
better.
But we do have some futurelocation coming up.
(15:49):
Those will be a drive-throughas well.
Brian Sheehan (15:51):
Are you guys looking at any new construction
opportunities?
Are you doing any ground updevelopment?
Bhagyesh Patel (15:57):
Yes, we actually currently talking to a couple
of the areas and spaces that wehope to do ground up.
Do we love to do it at thismoment?
No, I think it takes a lot oftime and energy and we want to
focus our energy and time intogrowing rather than developing
something.
So right now that's not ourpriority.
(16:18):
But if something comes, youknow, and if some deal is right,
then we can.
We can do that as well.
Brian Sheehan (16:25):
You mentioned a fast, casual type of restaurant
and, for anybody that hasn'tbeen inside of one of your
stores yet, is there anythingunique to a TakaPro's build out
in terms of the utilities orHVAC, electrical water?
Bhagyesh Patel (16:40):
Our build-out is pretty simple.
It looks good, but to build outsomething, the store like Taco
Bell.
It doesn't cost you as much andit's very simple to build out
and very quickly.
So in fact, all the generalcontractors love us because they
do a lot of the constructionwith the big brand and it's
sometimes very complicated,overcomplicated.
(17:01):
We don't do that.
But one thing we do have in ourstore as of right now we, we
love art, we love design.
Uh, so we have actually acouple of the artists that go to
every taco pros, um, and theyactually do a draw artwork of
mountain and cactus and it's ahand hand draw, right, like they
(17:23):
paint everything with the handand we like that.
You know I'm not a big guy ofwallpaper and just no human
touch, right.
So that's what we are doingright now.
So if you go to any taco place,you see the design that in
there is done by one of thelocal artists from the city we
love too.
Brian Sheehan (17:42):
I think that's such a special aspect of your
brand identity and unique, Ithink, in this space where
everything's become kind ofhomogenized to a certain extent.
Bhagyesh Patel (17:55):
Yep, and people appreciate that.
When they come in and they findout like local resident people,
they're like, oh, these artistsdid this.
We're like, yeah.
They're like, oh, dude, itlooks so good.
And we think sometimes peopledo not notice that stuff, but
they do and they also appreciatesupporting local artists and
(18:16):
bringing artwork to thecommunity.
Brian Sheehan (18:18):
I'm curious, I guess, how you go about finding
those local artists.
Bhagyesh Patel (18:25):
It's hard and now it's easy thanks to social
media and luckily, you know, allthese artists has a friend in
different states.
So now every state we areopening, we are trying to ask
them hey, do you have somebodylocally there?
And most of the time they havesomeone, if not meantime, they
are willing to travel and do theartwork there.
(18:47):
And I know once we do it,people will come eat and they
will like hey, dude, I do thistype of work, would you mind
giving me a next project?
I'm like yeah, let's do that.
So that's the plan right now.
Brian Sheehan (19:00):
It could really happen organically through the
power of social media.
Yes, For anyone that wants topresent a site to you and your
team.
What's the best way to go aboutthat?
Bhagyesh Patel (19:09):
So if somebody would like to present a site,
then go to the website.
You know, just there is acontact form.
You fill that out, say, hey, Ihave a site and we have a lot of
people reach out to us, andthat email I personally get it,
my team also gets it, and thenwe reach out to those people and
(19:30):
then you know we start fromthere.
Brian Sheehan (19:33):
That's great.
And can we talk AUV for asecond?
What's the average sales volumefor Taco Pros?
Bhagyesh Patel (19:42):
Yeah, of course I mean you would.
Uh, I would talk about thecorporate store that we have,
right, because that's I don'thave to get a permission from
anyone.
But our current taco pros, aovsare, you know, we do, about one
plus million dollar, uh, eventhe small footprint, about 15 to
1800 square feet, uh, and andwe have some store that does
(20:03):
about two plus near two milliondollar sales as well and with no
dining, you know, just carryout.
We have a sum with the bar,small like a margarita and stuff
, and so our goal as a companywe want to have average one plus
million AV for all our stores.
Brian Sheehan (20:21):
That's excellent, begash.
Last question Taco Pros has, Inoticed, a rewards program and
I'm curious how important thatis.
You can talk about thepercentage of sales volume
that's generated online versusin-store, and have you seen a
shift to more in-store pickupversus, say, delivery?
Bhagyesh Patel (20:45):
Yes, I think so.
After we launched the rewardprogram and the purpose was the
reward program we want to saythank you to our loyal customers
.
They come to our store, spend alot of money every week, every
month, and this is a small thankyou from us.
So we give them a point Intheir birthday.
(21:07):
We give them a point, we give a, but in their birthday we give
free entry and randomly, we sendout a lot, of, a lot of
promotion and exclusive billjust for the members.
Uh, it's, people love that.
They appreciate, you know,whenever they get the message or
promo from the corporate team,our team, and also that helps us
to bring more in-store revenueand pick up from our website,
(21:28):
because they get a points whenthey place an order with us.
Right, and before used to be,you know, we didn't have this
platform so they place an orderfrom other parties and they
don't get points.
Now we have a system so they doget a points and they like that
Right now.
I want to say about 45% isonline, 55%.
(21:50):
It's 60% in-store right now,but our online presence is very
strong as well, so we are reallygood with both online and
in-store sales.
Brian Sheehan (22:00):
That online versus in-store are you seeing
any kind of sales?
That online versus in-store areyou seeing any kind of you?
Bhagyesh Patel (22:09):
know dramatic change in that, or is that
staying pretty consistent?
I want to say staying prettyconsistent.
We have more takeout orders.
I noticed in the last year anda half more and more people are
ordering takeout and I think so.
Our food also travels very well.
So you know, you order tacosand you eat after an hour.
It still stays the same right.
So, people, because of theirreason, we're seeing some small
(22:30):
percentage increase on deliveryand takeout orders.
Brian Sheehan (22:34):
Okay, well, that's amazing.
What a great story.
And, bagash, it was greatspeaking with you today.
Thank you for joining me onRetail Intel.
Be on the lookout for new TacoPros locations opening near you
and be sure to check them out onInstagram at taco underscore
pros.
Whether you're an aspiring realestate mogul, a seasoned pro or
(22:57):
simply curious about the placeswhere we shop, dine, play and
work, this podcast is yourall-access pass to the world of
commercial real estate.
If you're interested in being apart of the Retail Intel
podcast, connect with me onLinkedIn or send a message to
nationalaccounts atphillipsedisoncom.
If you want to hear more aboutnew and expanding brands like
(23:18):
Taco Pros, keep tuning in toRetail Intel and please
subscribe, follow, like andrepost.
Talk to you next time.
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