Private Equity's Growing Role in Restaurants Draws Backlash From Younger Diners
Critics point to New York taco chain Los Tacos No 1 as private equity investment reshapes the city's food scene, according to the Guardian.
According to the Guardian, as private equity firms increasingly invest in restaurants, some diners, including younger customers, are criticizing what they describe as the "same-ification" of New York City's restaurant scene.
The report cites Los Tacos No 1, a Mexican-style taco chain that opened in 2013 and grew to nine locations after gaining a following for its al pastor and handmade tortillas. This September, the chain received an undisclosed amount of funding from private equity firm TSG Consumer, which said in a press release that the investment would support "thoughtful, founder-led growth."
The Guardian reports that the deal drew criticism on social media, with some customers voicing concern the investment could lead to a decline in quality.
Sources
- ‘Don’t spend $20 on an acai bowl’: gen Z are shunning private equity’s restaurant takeover — The Guardian — Business
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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