Private equity firm Z Capital Partners LLC has agreed to buy the Pink Taco restaurant brand for an undisclosed amount.
Pink Taco was started in the Hard Rock Hotel Las Vegas in 1999 by Harry Morton. The target is known for its tacos and tequila. Morton will remain with the company leading marketing efforts including future restaurant designs and locations and launching Pink Taco’s packaged food and beverage product line. In addition to Las Vegas, Pink Taco has another location on the sunset strip in Los Angeles. The Las Vegas restaurant will continue to be owned and operated by the Hard Rock after the transaction closes.
“We believe there is tremendous potential to elevate the brand and expand its unique restaurant experience both domestically and internationally,” says Z Capital CEO James Zenni. The PE firm is also invested in Real Mex Restaurants and is planning on using marketing and operational resources from Real Mex to help expand Pink Taco. Z Capital became Real Mex’s largest shareholder in 2013.
PE firms have been going after regional restaurant chains that have growth potential. In 2015, General Atlantic said it will make a minority growth investment in fast casual chain operator Barteca Holdings and Stone-Goff Partners is buying sports bar chain Greene Turtle Sports Bar & Grille.