Taco Cabana is a fast-casual Mexican restaurant franchise serving tacos, fajitas, and freshly prepared salsas in a relaxed, colorful setting.
KEY FRANCHISE STATS
Franchisees
?
6
+
0%
0%
Franchise fee
?
$45,000
Investment
?
$1,267,000 - $2,776,000
Revenue (AUV)
?
Undisclosed
$1,452,000
+
n.a.
n.a.
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Founded in 1991 by Felix Stehling in San Antonio, Texas, Taco Cabana began as a humble taco stand in a repurposed Dairy Queen building. The restaurant's open-air patio concept and 24-hour service quickly garnered a loyal following, setting the stage for its expansion.
Today, Taco Cabana is headquartered in San Antonio and operates numerous locations across Texas.
In 2023, Taco Cabana launched its franchising program, allowing the brand to extend its reach beyond Texas.
Taco Cabana's menu features a variety of Tex-Mex favorites, including tacos, burritos, quesadillas, and their signature margaritas. The brand differentiates itself through its commitment to fresh, handmade food and a vibrant, patio-style dining experience.
Initial investment
The initial investment required for a Taco Cabana franchise is
$1,267,000 - $2,776,000.
That is the total cost you would need to finance 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
$35,000 - $45,000
Grand Opening Advertising
$10,000
Real Estate
$25,000 - $150,000
Construction/Leasehold Improvements
$635,000 - $1,685,000
Travel and Living Expenses While Training
$9,500 - $14,000
Furnishing, Fixtures, Equipment
$274,000 - $322,000
Signage
$60,000 - $155,000
Initial Inventory
$25,000 - $30,000
Miscellaneous Opening Costs
$100,000 - $180,000
Register or Point of Sale System
$18,000 - $50,000
Additional Funds - 3 Months
$75,000 - $135,000
Total
$1,266,500 - $2,776,200
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Type of Expenditure
Amount
Initial Franchise Fee
$35,000 - $45,000
Grand Opening Advertising
$10,000
Real Estate
$25,000 - $150,000
Construction/Leasehold Improvements
$635,000 - $1,685,000
Travel and Living Expenses While Training
$9,500 - $14,000
Furnishing, Fixtures, Equipment
$274,000 - $322,000
Signage
$60,000 - $155,000
Initial Inventory
$25,000 - $30,000
Miscellaneous Opening Costs
$100,000 - $180,000
Register or Point of Sale System
$18,000 - $50,000
Additional Funds - 3 Months
$75,000 - $135,000
Total
$1,266,500 - $2,776,200
Franchise Disclosure Document
Below is Taco Cabana's 2025 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
Taco Cabana had 146 total units in 2025, of which 6 were franchised-owned and 140 company-owned.
Frequently Asked Questions
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Taco Cabana
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Taco Cabana
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Taco Cabana
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Taco Cabana provides an extensive training program designed to equip franchisees and their staff with the necessary skills and knowledge to operate a successful restaurant. The training is structured in several phases:
Initial Training Program (ITP) Before opening, the Operating Principal, General Manager, and two other designated managers must complete the ITP. This program may be held at Taco Cabana-operated facilities, designated training centers, or online, and includes certification in ServSafe food safety. Attendance is required and all associated costs such as travel and lodging are borne by the franchisee.
Franchise Operator Training Activities This includes in-restaurant, virtual, and classroom sessions tailored to operational roles. Topics cover shift leadership, general management, new product launches, equipment, and operational initiatives. Each segment has designated hours with both theoretical and practical components.
Opening Assistance At the time of launch, Taco Cabana may provide in-person help with training staff and setting up operations, depending on the franchisee’s needs and the availability of corporate staff. Additional support beyond standard assistance may incur fees.
Territory Protection
Taco Cabana provides limited territory protection through what it terms a “Protected Area.” In urban regions, this typically spans four city blocks in each direction from the franchise’s front door.
In suburban and rural areas, protection may include a surrounding population of at least 30,000 residents or a one-mile radius, respectively, within which Taco Cabana will not authorize or operate another restaurant, assuming the franchisee remains in compliance.
However, this protection comes with significant exceptions. Taco Cabana reserves the right to operate in the Protected Area through venues like airports, universities, military bases, and other captive market locations.
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