Taco del Mar
Encyclopedia
San Francisco burrito
San Francisco burrito is a type of burrito, originally a Mexican-American food, that originated in San Francisco, California. The San Francisco burrito is distinguished from a regular burrito partly by the amount of rice and other side dishes included in the package, and partly by its sheer size...
s. Since opening in Seattle on June 8, 1992 by brothers James and John Schmidt, it has expanded into over 260 locations in the U.S.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. It is known for its relaxed, seaside-themed atmosphere.
The name "Taco del Mar," meaning "taco of the sea" in Spanish
Spanish language
Spanish , also known as Castilian , is a Romance language in the Ibero-Romance group that evolved from several languages and dialects in central-northern Iberia around the 9th century and gradually spread with the expansion of the Kingdom of Castile into central and southern Iberia during the...
, refers to the chain's original specialty – fish tacos. Like the larger Subway
Subway (restaurant)
Subway is an American restaurant franchise that primarily sells submarine sandwiches and salads. It is owned and operated by Doctor's Associates, Inc. . Subway is one of the fastest growing franchises in the world with 35,519 restaurants in 98 countries and territories as of October 25th, 2011...
chain, the customer directs the preparation of his or her meal, requesting ingredients as it moves along an assembly line. A standard selection of "Mission Style" (as in San Francisco) Mexican ingredients is available, including wheat, flour, tomato, or spinach
Spinach
Spinach is an edible flowering plant in the family of Amaranthaceae. It is native to central and southwestern Asia. It is an annual plant , which grows to a height of up to 30 cm. Spinach may survive over winter in temperate regions...
tortilla
Tortilla
In Mexico and Central America, a tortilla is a type of thin, unleavened flat bread, made from finely ground maize...
s, and fish, beef, pork, or chicken.
2008 franchisee lawsuit
In 2007, Taco Del Mar announced that more than 30 franchisees closed their restaurants. Taco Del Mar executives cited poor sales and bad locations as the cause of the closures. Previously Taco Del Mar closed restaurants throughout the Dallas and Boston markets due to poor financial performance.However, a group of franchisees and Master Developers called The Truth About Taco Del Mar charged that several Taco Del Mar executives took secret kickbacks from various suppliers that raised restaurant operating costs, hurting franchisee profitability and contributing to the store closures. There is no evidence of alleged kickbacks; furthermore, Taco Del Mar founder James Schmidt said if there ever were kickbacks proven, the money would be returned to the Franchisee.
The group also claims that Taco Del Mar intentionally removed former franchises from its uniform offering circular (UFOC) to mislead potential investors into purchasing restaurants from the franchise. In December 2007, reporter Julie Bennett conducted an investigation and found many franchisees outside of Washington and Oregon were losing money at Taco Del Mar.
There has not been one credible example of kickbacks ever brought to the attention of an attorney, posted here or any one else, that has come to my attention. If we were getting kickbacks and it was proven then franchisees would get money back, we disclose we do not get kickback so if we took them, then prove it and money will be returned - James Schmidt
More than 20 franchisees are currently preparing a class-action lawsuit to recover costs from Taco Del Mar Franchising Corp and Conrad & Barry Investments. In November 2007, Taco Del Mar Franchising Corp President David Huether resigned. Less than one month later, Neal Hollingsworth, Taco Del Mar's VP of Franchising Sales also resigned and left the Seattle/Tacoma
Tacoma, Washington
Tacoma is a mid-sized urban port city and the county seat of Pierce County, Washington, United States. The city is on Washington's Puget Sound, southwest of Seattle, northeast of the state capital, Olympia, and northwest of Mount Rainier National Park. The population was 198,397, according to...
area.
Failure rates of restaurants is commonly thought to be high. Recent studies have mitigated some of those assumptions, but still show three-year failure rates of all restaurants to be about 61.4%, and that franchise restaurants fare slightly better than independently owned locations.
2008 explosion in Vancouver
During the early morning hours of February 13, 2008, a Taco del Mar franchise in VancouverVancouver
Vancouver is a coastal seaport city on the mainland of British Columbia, Canada. It is the hub of Greater Vancouver, which, with over 2.3 million residents, is the third most populous metropolitan area in the country,...
, British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
was destroyed by a large explosion which damaged several nearby businesses. Police confirmed that the blast was caused by an arson
Arson
Arson is the crime of intentionally or maliciously setting fire to structures or wildland areas. It may be distinguished from other causes such as spontaneous combustion and natural wildfires...
ist who had placed an accelerant
Accelerant
Accelerants play a major role in chemistry. Most chemical reactions can be hastened with an accelerant. Accelerants alter a chemical bond, speed up a chemical process, or bring organisms back to homeostasis. Accelerants are not necessarily catalysts as they may be consumed by the process...
inside the restaurant, then set it on fire. Vancouver-area police later arrested Kamal Jeet Singh Josan, suffering from burns to over 40% of his body. The motive for this act is currently not publicly known. In April, 2009 charges against Josan were stayed due to lack of evidence. Harjit Nandha denied police claims that Josan was a family friend.
Manjeet Nanda, one of the co-owners of the bombed restaurant, was later found dead of an apparent suicide. In an interview, she indicated that she originally intended to sell the franchise before it was destroyed.
2010 bankruptcy filing
On Friday, January 22, 2010, Taco Del Mar filed for Chapter 11 bankruptcy protection in Seattle. Among its major creditorCreditor
A creditor is a party that has a claim to the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption that the second party will return an equivalent property or...
s were Suzanne Todd, a franchisee in Maryland
Maryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...
, with a disputed claim for $500,000; Paul & Shahnaz Hendifar, with a $125,416 judgment entered in Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
; Canada Revenue Agency
Canada Revenue Agency
The Canada Revenue Agency is a federal agency that administers tax laws for the Government of Canada and for most provinces and territories, international trade legislation, and various social and economic benefit and incentive programs delivered through the tax system...
, with a $105,324 tax claim, and the city of Seattle, with a $95,289 claim for taxes.
Taco del Mar was auctioned in a bankruptcy sale on September 30, 2010, and the winning bid of $3.25 million came from Connecticut company Franchise Brands LLC, according to a story in the Seattle Times
Franchise Brands was created in 2005 by Fred De Luca and Peter Buck
Peter Buck
Peter Lawrence Buck , is an American rock guitarist who is best known for playing in and co-founding alternative rock band R.E.M....
the founders of Subway restaurants. Both Subway and Franchise Brands LLC are based in
Milford, Conn.