Mike's Red Tacos

Mike's Red Tacos Franchise FDD, Costs & Fees (2025)

Mike's Red Tacos is a fast-casual Mexican franchise offering birria tacos, quesadillas, and shareable plates, serving flavor-driven diners and late-night crowds, and known for richly stewed meats, vibrant red tortillas, lively branding, and roots in San Diego’s taco culture.

KEY FRANCHISE STATS

Franchisees

?

0
+
n.a.
n.a.
Franchise fee

?

$40,000
Investment

?

$640,000 - $1,988,000
Revenue (AUV)

?

Undisclosed

$0

+
n.a.
n.a.

Mike’s Red Tacos is a fast-casual Mexican food franchise known for its bold birria tacos and creative, crave-driven menu. The brand was founded in 2021 in San Diego, California by entrepreneur Mike Touma, starting as a neighborhood food truck in the Bay Park area.

Its slow-simmered birria and signature red-dipped tortillas quickly gained a loyal following, leading to the opening of multiple brick-and-mortar locations. The concept centers on authentic flavors paired with a modern, social-media-friendly presentation.

Mike’s Red Tacos is headquartered in Pasadena, California and operates through Mike’s Red Tacos Franchise Co, LLC. The company began franchising in 2025, responding to strong customer demand and rapid brand recognition in Southern California.

The menu focuses on birria-based items such as tacos, quesadillas, burritos, mulitas, birria ramen, and loaded fries, all built around a streamlined kitchen process. This simplicity helps franchisees manage labor and food costs while delivering a highly repeatable customer experience.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $40,000
Architect / Engineer $14,000 – $50,000
Business Licenses and Permits $1,000 – $30,000
Construction, Remodeling and Leasehold Improvements $275,000 – $875,000
Equipment $110,000 – $315,000
Furniture, Fixtures and Decorations $11,500 – $100,000
Smallwares $11,000 – $18,000
Signage $17,000 – $110,000
Graphics and Artwork $30,000 – $70,000
Grand Opening Kit, Menu Boards $12,500 – $15,000
Drive-Thru, Loop Timers and Signage $0 – $35,000
Computer Equipment and POS Systems $13,500 – $40,000
Office Supplies $1,000 – $3,000
Uniforms $1,500 – $5,000
Initial Inventory and Supplies $20,000 – $50,000
Insurance Deposits $1,500 – $4,000
Pre-Opening Rent $5,000 – $20,000
Initial Training $12,000 – $23,000
New Restaurant Opening Fee $0 – $15,000
Pre-Opening Labor Expense $15,000 – $40,000
Pre-Opening and Grand Opening Advertising $10,000 – $12,000
Miscellaneous Opening Costs $1,000 – $20,000
Professional Fees $1,000 – $15,000
Media Fee $20,000 – $35,000
Additional Funds (3 Months) $16,300 – $48,000
Total Estimated Initial Investment $639,800 – $1,988,000
Type of Expenditure Amount
Initial Franchise Fee $40,000
Architect / Engineer $14,000 – $50,000
Business Licenses and Permits $1,000 – $30,000
Construction, Remodeling and Leasehold Improvements $275,000 – $875,000
Equipment $110,000 – $315,000
Furniture, Fixtures and Decorations $11,500 – $100,000
Smallwares $11,000 – $18,000
Signage $17,000 – $110,000
Graphics and Artwork $30,000 – $70,000
Grand Opening Kit, Menu Boards $12,500 – $15,000
Drive-Thru, Loop Timers and Signage $0 – $35,000
Computer Equipment and POS Systems $13,500 – $40,000
Office Supplies $1,000 – $3,000
Uniforms $1,500 – $5,000
Initial Inventory and Supplies $20,000 – $50,000
Insurance Deposits $1,500 – $4,000
Pre-Opening Rent $5,000 – $20,000
Initial Training $12,000 – $23,000
New Restaurant Opening Fee $0 – $15,000
Pre-Opening Labor Expense $15,000 – $40,000
Pre-Opening and Grand Opening Advertising $10,000 – $12,000
Miscellaneous Opening Costs $1,000 – $20,000
Professional Fees $1,000 – $15,000
Media Fee $20,000 – $35,000
Additional Funds (3 Months) $16,300 – $48,000
Total Estimated Initial Investment $639,800 – $1,988,000

Franchise Disclosure Document

Create an account to access and download this FDD. For more information, see our plans here.

Number of units

Training

Mike’s Red Tacos offers a comprehensive and multi-phase training program to prepare franchisees for successful restaurant operation. The key components of this training are:

  1. Initial Training Program
    The Initial Training Program is conducted at the franchisor’s training facilities in San Diego or another designated location. It is mandatory for the Franchisee, Operating Principal, Director of Operations, and up to six additional team members for the first location. The program includes system methods, operational standards, and practical application.
  2. Extra Practice Week and Online Training
    Franchisees must also complete an "Extra Practice Week" and online training, typically scheduled at least 60 days before opening. This includes hands-on training to reinforce key operational tasks. Participation is required for final approval to open the restaurant.
  3. On-Site Opening Assistance
    A New Restaurant Opening (NRO) Team provides on-site assistance around the grand opening, unless the franchisee has four or more locations and certified internal trainers. This support ensures real-time coaching during the critical launch period.

Territory Protection

Mike’s Red Tacos provides franchisees with a defined territory that may include a geographic radius or specifically described area as outlined in the franchise agreement.

However, the franchise does not guarantee exclusive territorial rights. Even within an assigned territory, the franchisor retains broad rights to open company-owned restaurants, authorize others to operate Mike’s Red Tacos outlets, or sell through other channels.

In some cases, a franchisee may receive a limited Area of Protection, but this protection does not apply to non-traditional venues such as airports or malls, nor does it restrict the franchisor from operating under different brand names within the area.

Competitors

Below are some of

Mike's Red Tacos

key competitors in the

Mexican

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Sign up
Gross Profit
Sign up
EBITDA
Sign up

0

New
+
n.a.
n.a.

$40,000

$640,000

$1,988,000

n.a.

$0

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Competitors

Taco Rico or Taco Works

Taco Rico / Taco Works is a Tex-Mex restaurant franchise offering tacos, burritos, fajitas, chimichangas, salads, and salsa bars, serving families and office crowds, and known for quick counter service, complimentary chips, and approachable, value-focused neighborhood locations.

Franchisees

?

3
+
0%
0%
Investment

?

$155,000 - $341,000

Mike's Red Tacos

Mike's Red Tacos is a fast-casual Mexican franchise offering birria tacos, quesadillas, and shareable plates, serving flavor-driven diners and late-night crowds, and known for richly stewed meats, vibrant red tortillas, lively branding, and roots in San Diego’s taco culture.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$640,000 - $1,988,000

Mucho Burrito

Mucho Burrito is a fast-casual Mexican restaurant franchise offering burritos, bowls, tacos, and catering, serving lunch and dinner guests seeking bold flavors, and known for fresh-prepared ingredients, customizable entrees, and a contemporary brand backed by strong training and support.

Franchisees

?

1
+
n.a.
n.a.
Investment

?

$470,000 - $925,000

District Taco

District Taco is a fast-casual Mexican franchise offering made-to-order tacos, bowls and margaritas, serving lunch and dinner crowds, and known for fresh ingredients, bold regional flavors and franchise growth momentum.

Franchisees

?

2
+
n.a.
n.a.
Investment

?

$734,000 - $1,458,000

Chronic Tacos

Chronic Tacos is a fast-casual franchise offering customizable tacos, burritos, bowls, and Mexican favorites, serving lunch and late-night diners, and known for fresh ingredients, made-to-order prep, and a laid-back California vibe.

Franchisees

?

29
+
-36%
-36%
Investment

?

$284,000 - $884,000

Taco Cabana

Taco Cabana is a fast-casual Mexican restaurant franchise serving tacos, fajitas, and freshly prepared salsas in a relaxed, colorful setting.

Franchisees

?

6
+
0%
0%
Investment

?

$1,267,000 - $2,776,000

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