Dallas-based Velvet Taco, a fast-growing fast casual restaurant concept announced Sept. 2 it has received a significant strategic growth investment from L Catterton, the largest consumer-focused private equity firm in the world. Terms of the investment were not disclosed.
Founded in Dallas in 2011, Velvet Taco has grown with locations now in Fort Worth, Houston and Chicago, and will open in Austin this winter.
“Velvet Taco is disrupting the idea of the taco shop, with an inspired response to consumers’ increasing desire for premium quality and a fun, authentic dining experience,” said Randy Dewitt, founder of Velvet Taco and CEO of Front Burner, a restaurant company. “L Catterton has unparalleled experience building great brands in the fast casual restaurant space and a deep understanding of consumer trends. They have a keen instinct for what the consumer wants, and I’m confident that L Catterton will be an incredibly valuable partner as Velvet Taco continues to grow and attract more converts to the taco revolution.”
With the investment, Dewitt and the company have initiated a search process for the next CEO of Velvet Taco so that Dewitt may maintain his role as CEO of Front Burner. Following the appointment of a new CEO, DeWitt and the Front Burner team will continue to be involved in Velvet Taco, according to the press release.
Arlington Capital Advisors LLC, acted as the exclusive financial advisor to Velvet Taco.