A View From The Top

Armando Flores, head of Supply Chain at Taco Cabana, discusses how she focuses on strategic sourcing, meaningful partnerships and regional efficiency to keep costs down.

Photo: Taco Cabana

April 28, 2025

In today’s rapidly evolving economic landscape, one of the most persistent challenges restaurant brands face is the pressure of rising costs. For many, supply chain disruptions have become an all-too-familiar hurdle, especially as inflation continues to impact key sectors quarter after quarter. At Taco Cabana, we’ve had to remain nimble, creative and relationship-focused to navigate these complexities while maintaining the quality and consistency our guests expect.

We are doubling down on strategic sourcing and distribution initiatives to ensure stability for franchisees. From securing a 25% reduction in tequila costs through direct bottler relationships to eliminating middlemen in key supply chains — reducing costs by 15% — we are proactively mitigating cost pressures while maintaining high-quality standards.

Balancing cost and value in an inflationary environment

Perhaps the most significant hurdle we face right now is managing cost amid sustained inflation. Rather than simply absorbing or passing on these costs, Taco Cabana takes a targeted approach. We look for opportunities in specific sectors where pricing is more favorable to help offset those where inflation has a greater impact. This balancing act allows us to maintain menu integrity and value for guests while preserving margins.

Leveraging relationships

A major contributor to Taco Cabana’s supply chain resilience has been our many longstanding relationships with key suppliers. These partnerships extend beyond transactional agreements; we see our vendors as part of the team. When suppliers feel like they’re in the boat with you, you move forward together. This collaboration ensures consistent product availability and greater flexibility in navigating tough market conditions. Our suppliers are motivated to innovate and help us meet shared goals, particularly during high-pressure periods.

For example, our decade-long partnership with PFG has been instrumental in navigating distribution challenges, ensuring franchisees have reliable access to essential ingredients. Beyond cost efficiencies, we are leveraging supplier relationships to drive innovation — introducing menu exclusives like the Tajín Mango Dessert Pie and Dr Pepper-branded beverages, as well as expanding our partnership with EcoLab to help franchisees earn Science Safe Certification.

Staying local: A strategic advantage

One of Taco Cabana’s greatest logistical advantages is our regional footprint. With most restaurants in Texas, we’ve prioritized partnerships with Texas-based suppliers. The result? A local supply chain that reduces transportation costs, shortens delivery timelines and supports the in-state economy. In many cases, our suppliers are located no more than 300 miles from our restaurants, which allows us to procure high-quality ingredients at competitive prices. As the brand looks to expand beyond Texas, this regional model is a blueprint for scalable growth. By replicating the same supplier relationship-driven approach in new markets, Taco Cabana is well-positioned to maintain supply chain efficiency, product consistency and cost control as it enters new regions.

Building a resilient supply chain

For other restaurant brands seeking to build a stronger, more resilient supply chain, my number one piece of advice is to focus on relationships. It can be tempting to chase the lowest costs, but that approach often sacrifices long-term reliability. Consider everything a supplier brings to the table—not just price, but also quality, delivery consistency, innovation and communication. Establishing trust and shared goals with suppliers pays dividends over time. When challenges arise, those relationships often determine whether a brand can adapt quickly or get left behind.

The future is regional

Looking ahead, I believe we’ll see the rise of regional supply chain strategies. The days of shipping products from coast to coast are waning as brands seek more efficient, local solutions. Future-focused restaurant brands will invest in distribution and manufacturing partnerships tailored to the needs of each region. This will cut costs and delivery times, and it will add a layer of flexibility that national networks often lack. Having region-specific contracts and relationships allows brands to pivot more effectively as demand shifts and market conditions evolve.

Taco Cabana remains extremely proud of how we’ve built a supply chain that supports our growth while staying true to our brand values. Through strategic sourcing, meaningful partnerships and a commitment to regional efficiency, we continue to adapt and lead in a challenging environment. The lessons we’ve learned can benefit any brand willing to invest in the foundations of a resilient and efficient supply chain.

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