Two Pesos
Encyclopedia
Two Pesos was a Tex-Mex
restaurant chain in the U.S. state
of Texas
that opened about 1985 in Houston. It was similar to Taco Cabana
but Two Pesos never opened in Taco Cabana's home market of San Antonio
. The Two Pesos chain was sold to Taco Cabana
in 1993 after losing a drawn-out trade dress
suit that appeared before the United States Supreme Court.
." After many appeals, the case went to the Supreme Court, which in 1992 ruled in Two Pesos, Inc. v. Taco Cabana, Inc. in favor of Taco Cabana. The Two Pesos owner[s] sold to Taco Cabana the next year rather than making the changes required by the judgment.
Tex-Mex cuisine
"Tex-Mex" is a term used to describe a regional American cuisine that blends food products available in the United States and the culinary creations of Mexican-Americans influenced by the cuisines of Mexico. The cuisine has spread from border states such as Texas and those in the Southwestern...
restaurant chain in the U.S. state
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
of 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...
that opened about 1985 in Houston. It was similar to Taco Cabana
Taco Cabana
Taco Cabana is a U.S.-based fast food restaurant chain specializing in Tex-Mex cuisine and is a wholly owned subsidiary of Carrols Restaurant Group. Taco Cabana is headquartered in San Antonio, Texas...
but Two Pesos never opened in Taco Cabana's home market of San Antonio
San Antonio, Texas
San Antonio is the seventh-largest city in the United States of America and the second-largest city within the state of Texas, with a population of 1.33 million. Located in the American Southwest and the south–central part of Texas, the city serves as the seat of Bexar County. In 2011,...
. The Two Pesos chain was sold to Taco Cabana
Taco Cabana
Taco Cabana is a U.S.-based fast food restaurant chain specializing in Tex-Mex cuisine and is a wholly owned subsidiary of Carrols Restaurant Group. Taco Cabana is headquartered in San Antonio, Texas...
in 1993 after losing a drawn-out trade dress
Trade dress
Trade dress is a legal term of art that generally refers to characteristics of the visual appearance of a product or its packaging that signify the source of the product to consumers...
suit that appeared before the United States Supreme Court.
History
Two Pesos was started in 1985 by Houston restaurateur Marno McDermot, who had been in negotiations with Taco Cabana's management to take the patio-restaurant chain nationwide. When Taco Cabana's founding Stehling brothers rejected his advances, McDermot decided to open up his own chain of similarly themed patio-dining Tex-Mex restaurants under the Two Pesos name. When Taco Cabana entered the Houston market, they sued Two Pesos for stealing their business concepts and "trade dressTrade dress
Trade dress is a legal term of art that generally refers to characteristics of the visual appearance of a product or its packaging that signify the source of the product to consumers...
." After many appeals, the case went to the Supreme Court, which in 1992 ruled in Two Pesos, Inc. v. Taco Cabana, Inc. in favor of Taco Cabana. The Two Pesos owner[s] sold to Taco Cabana the next year rather than making the changes required by the judgment.