LeBron James backs 3-location birria chain Mike's Red Tacos
What's the deal? Mike's Red TacosDealroom has a profile for this one. Try Dealroom →, a Southern California birria brand that started as a single San Diego food truck in 2021, has landed an undisclosed investment from LeBron JamesDealroom has a profile for this one. Try Dealroom →. The four-time NBA champion joins a company that runs three locations, with a company-owned restaurant and training center opening in Pasadena next month.
Why now? The chain is scaling: several franchise locations are under construction across the country. James called it a group "building something authentic with a long-term vision."
Why this fit? James was an early backer of Blaze PizzaDealroom has a profile for this one. Try Dealroom → and Dave's Hot ChickenDealroom has a profile for this one. Try Dealroom →, both co-founded by Bill PhelpsDealroom has a profile for this one. Try Dealroom → — now Mike's Red Tacos' chair and an early investor. He also launched BucketsDealroom has a profile for this one. Try Dealroom →, a full-service restaurant in his hometown of Akron, Ohio, earlier this year.
What's the endgame? Founder Mike Touma sees the deal as a credibility signal for prospective franchisees, operators, and landlords. James's link to tacos runs deep: he fronted Taco BellDealroom has a profile for this one. Try Dealroom →'s Taco Tuesday campaign in 2023 and tried to trademark the phrase in 2019.
"LeBron's connection to Taco Tuesday is authentic and already part of pop culture," Touma told IncDealroom has a profile for this one. Try Dealroom →.
What could go wrong? Dave's Hot Chicken chief executive officer Jim Bitticks cautioned that visibility is only one piece of the puzzle. Given the brand's small footprint, the endorsement is a promising start, but other factors matter just as much.
The signal: The deal reflects how top athletes are shifting from endorsements to ownership stakes. As Adam Mendler, host of the Thirty Minute Mentors podcast, put it, athletes "have capital, enormous reach, and relationships that can help a consumer brand grow, and increasingly they're using all three to build ownership stakes in companies they believe can scale."
Image credit: joshuaheller
