The Investors Behind Dave’s Hot Chicken Are Betting Big On Birria

Ben Phelps and Andrew Feghali, the investors responsible for the viral success of Dave’s Hot Chicken, are backing San Diego-based Mike’s Red Tacos, with plans to franchise the local joint and open hundreds of locations across the U.S.

Birria comes from Jalisco, Mexico, where it started as a slow-braised stew made with goat (now often beef) in a chile-rich broth. Once served mainly as a bowl with consommé, it evolved into quesabirria tacos, crispy, cheese-filled tortillas dipped in broth that helped push the dish from regional staple to street food star.

According to Dataessential, birria now appears on 3.7% of restaurant menus and is projected to grow by 118% over the next four years. Major chains from QDOBA to El Pollo Loco have tested their own variation of birria menu items, signaling that the once-regional speciality is now treading towards the mainstream market.

With franchisors stepping in, Mike’s Red Tacos could follow the same trajectory of Dave’s Hot Chicken-transitioning from a local favorite into a nationwide chain. As conversations around birria continue to trend on social media, this investment is more than just betting on another delicious idea–instead it’s responding to another hot consumer demand this year.