Houston-based Mas Restaurant Group has sold 43 Taco Bell locations in Ohio to Southpaw, a franchisee operating 180 restaurants across six states. The transaction allows Southpaw to enter a new market, supplementing its existing Taco Bell and Dunkin’ outlets in New York, New Jersey, Maryland, Kentucky, Georgia, and Louisiana.
Financial details of the sale were not made public. Andrew Mendelsohn, managing director at Bessemer Investors—the investment firm supporting Mas Restaurant Group—stated the deal demonstrated the company’s solid performance in Ohio. He highlighted the restaurants’ reputation, built on strong customer service and a committed team.
“While we are passing the torch on these specific locations,” Mendelsohn said, “our core mission of best-in-class customer service remains unchanged.”
The sale follows an earlier agreement where Mas Restaurant Group sold 44 Taco Bell sites in Texas to Ghai Restaurant Group. Piper Sandler and Unbridled Capital advised on the Ohio transaction, while Sidley Austin handled legal matters.
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Taco Bell has outperformed many competitors, showing steady growth despite industry challenges. Same-store sales increased 8% in the first quarter, a rare bright spot in the sector.
For Mas Restaurant Group, the sale aligns with a broader effort to streamline operations. The company has been reducing its holdings, concentrating on markets where it can maintain strong oversight. Ohio had been a significant region, but the exit suggests a shift toward areas with higher growth potential or profitability.
Taco Bell’s parent company, Yum! Brands, has encouraged larger franchisees, believing they can better handle rising costs and technology investments. The brand has also prioritized modernization, including digital ordering and drive-thru improvements, which require substantial capital from owners.
The remaining Mas Restaurant Group locations continue under the same leadership. The company’s future plans remain uncertain, though analysts anticipate further sales as it narrows its focus. Meanwhile, the Ohio restaurants will become part of Southpaw’s expanding network.
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The transaction occurs as fast-food valuations hold firm despite inflation and wage increases. Taco Bell’s pricing strategy has helped it retain customers during economic downturns. Its menu, featuring items like the Crunchwrap and Doritos Locos Tacos, has proven more resilient than many competitors’ offerings.
As the deal finalizes, both companies will focus on integration. Southpaw aims to preserve the operational standards that made the Ohio locations attractive. For Mas Restaurant Group, the sale provides a chance to reallocate resources, though its next steps remain unclear.
This shift reflects broader changes in the food industry, where operators balance scale with adaptability.