Mike’s Red Tacos Franchise FDD, Profits & Costs (2026)
Mike’s Red Tacos is a fast-casual Mexican restaurant franchise built around birria-forward comfort food and a visually striking menu. Founded in 2021 in San Diego, California by entrepreneur Mike Touma, the concept began as a local food truck serving the Bay Park neighborhood.
The brand quickly developed a following thanks to its slow-cooked birria and vibrant red-dipped tortillas, which helped propel the business from a mobile operation into multiple physical restaurant locations. Its appeal blends traditional Mexican flavors with a contemporary presentation designed to resonate with modern diners.
Today, Mike’s Red Tacos is based in Pasadena, California and operates under Mike’s Red Tacos Franchise Co, LLC. After gaining momentum across Southern California, the company launched its franchising program in 2025 to support broader expansion.
The menu is centered on birria-based offerings, including tacos, quesadillas, burritos, mulitas, ramen, and loaded fries. A focused menu and efficient kitchen setup allow operators to control labor and ingredient costs while maintaining consistency across locations.
Initial Investment
How much does it cost to start a Mike’s Red Tacos franchise? It costs on average between $640,000 – $1,988,000 to start a Mike’s Red Tacos franchised facility.
This investment includes costs related to restaurant build-out, kitchen equipment, furniture, fixtures, initial food inventory, and other pre-opening operating expenses. The total amount required can vary depending on factors such as the size of the location, local market conditions, and whether the franchisee leases or purchases the space.
| 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
Frequently Asked Questions
How many Mike’s Red Tacos locations are there?
As of the latest available information, Mike’s Red Tacos has two locations in the United States.
What is the total investment required to open a Mike’s Red Tacos franchise?
The total investment required to open a Mike’s Red Tacos franchise ranges from $640,000 to $1,988,000.
What are the ongoing fees for a Mike’s Red Tacos franchise?
Mike’s Red Tacos franchisees pay ongoing fees that include a 5% royalty on gross sales and a 3% marketing and advertising contribution based on gross sales. These recurring fees support brand use, system-wide operations, and collective marketing efforts across the franchise network.
Who owns Mike’s Red Tacos?
Mike’s Red Tacos franchise is owned by entrepreneur Michael (Mike) Touma, a San Diego–born restaurateur who launched the concept as a birria taco food truck before expanding into brick-and-mortar restaurants and developing the franchise model.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. SharpSheets is an independent educational resource and is not affiliated with, endorsed by, or representing any franchisor mentioned on this website. Where noted, figures are taken from the franchisor’s Franchise Disclosure Document (FDD). In some cases, we may provide independent calculations or estimates based on publicly available information. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
