As private equity firms continue acquiring restaurants in New York, attention is focused on what changes may occur at a restaurant that received funding to pursue founder-led growth.
As acquisitions of restaurants by private equity (PE) firms increase worldwide, concern is growing over developments following acquisitions in New York’s restaurant industry as well. Los Tacos No. 1, a taco chain, announced that it had received funding from TSG Consumer to pursue founder-led growth, prompting widespread reactions on social media. The founders denied plans to charge extra for guacamole or switch to horse meat, and issued comments denying any decline in taco quality.
The New York Times ran a headline in April 2026 stating that “Big Money Is Betting on Bagels,” fueling doubts about the influence of PE firms. Media outlet Ravennas and others have pointed out that PE firms consider “food that can be made cheaply and quickly” attractive, and that businesses such as cookies, bagels and ice cream tend to be profitable.
PE involvement has prompted debate over its impact on diversity and local character in the restaurant industry, while concerns about changes in quality and service following acquisitions are spreading, particularly among young people in New York. The article conveys reactions from the field and promises made by the founders, while also introducing reporting by The Guardian and views from multiple media outlets as external information.