Mike’s Red Tacos, the San Diego-born birria franchise concept now backed by LeBron James, has signed a 15-unit franchise development agreement covering markets across Michigan. The deal is led by Michael Khalil, a multi-brand franchisee who operates 11 Little Caesars and 14 Jersey Mike’s locations, and represents the brand’s first significant presence in the Midwest.
Mike’s Red Tacos was founded by Mike Touma, who launched a San Diego food truck in 2020 after developing birria recipes as the style surged across social media. The brand opened its first brick-and-mortar restaurant in August 2022, followed by a second location in May 2024. In early 2025, the company brought in a team of restaurant industry professionals with experience scaling fast-casual concepts, and has since logged more than 300 franchise development commitments nationwide.
In September 2026, global entrepreneur LeBron James took a direct equity stake through his investment firm Main Street Advisors, a move the brand described as a reflection of conviction in the leadership team and long-term growth strategy, not a brand ambassadorship.
Mike’s Red Tacos
The Birria Experience
- Restaurant
- Not disclosed
- Liquid capital: $Not disclosed
Little Caesars
“Pizza! Pizza!”®
- Restaurant
- Not disclosed
- Liquid capital: $200000
Jersey Mike’s
A Sub Above
- Restaurant
- Liquid capital: $500000
A 15-Unit Agreement Bringing the Birria Concept to Metro Detroit and Beyond
The Michigan development agreement, announced September 1, 2026, covers 15 locations across the state. The first opening is planned for Royal Oak, a Detroit suburb known for its dense dining corridor, with additional sites to follow over the next several years. The deal was organized through Khalil’s network of existing Michigan operations, where he already has an established presence through his Little Caesars and Jersey Mike’s locations.
No specific timeline was announced for all 15 units beyond the Royal Oak first opening. Vincent Montanelli, President of Mike’s Red Tacos, confirmed the agreement and said the brand is continuing to target experienced multi-unit operators as it enters new markets.
An Operator Who Moved From Accounting Into Multi-Brand QSR
Michael Khalil began his career in accounting before founding a restaurant accounting firm, a background that shaped his approach to franchise due diligence and unit economics. He later transitioned into franchise ownership, building a portfolio of 11 Little Caesars locations and 14 Jersey Mike’s Subs restaurants across Michigan, Indiana, and California. His experience spans both the operational and financial dimensions of multi-unit management, which the brand flagged as a key factor in the selection.
“Michael brings a unique combination of restaurant expertise, financial acumen and hands-on operating experience that makes him an outstanding addition to the Mike’s Red Tacos family,” says Vincent Montanelli, President of Mike’s Red Tacos. The profile mirrors that of other operators who have signed development agreements with the brand: multi-brand franchisees with existing QSR infrastructure in target markets.
A Brand With 300+ Commitments and Two Open Restaurants
Mike’s Red Tacos presents an unusual development profile: more than 300 franchise commitments signed nationwide against a corporate footprint of just two operating restaurants in California at the time of the Michigan announcement, with a third opening in Pasadena, in the Los Angeles area, expected in fall 2026. The brand’s leadership team includes CEO Andrew Feghali and Chairman Bill Phelps, both of whom were involved in building Dave’s Hot Chicken into one of the more active fast-casual expansion stories of the past decade.
The company’s model centers on birria-style beef tacos served with a signature consomé for dipping, a format that built a social media following among Millennial and Gen Z diners before the brand opened its first permanent location. The brand was named a Nation’s Restaurant News Hot Concept in 2026 and a Yelp Top 100 restaurant in 2023.
Michigan Extends a Development Map That Has Moved Quickly
The Midwest had not previously featured in Mike’s Red Tacos’ development pipeline, which had been concentrated in California and markets where the brand’s food truck origins gave it name recognition. The Michigan agreement is the brand’s most geographically distant deal to date. Mike Touma, the founder, has maintained a hands-on role throughout the expansion, and the company has described franchise partner selection as a deliberate process rather than a volume-driven one.
Whether the Royal Oak opening materializes on the original timeline and how subsequent Michigan sites proceed will offer an early read on the brand’s ability to transfer its California-based following into new regional markets.
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