In today’s challenging economic landscape, escalating food costs and widespread labor shortages—both in the front and back of the house—are squeezing restaurant margins tighter than ever.
These pressures are reshaping the industry, driving a fierce battle among private equity firms eager to acquire promising restaurant concepts to fortify their portfolios.
The stakes are high, as these firms recognize that success hinges not only on innovative menus or appealing spaces but also on securing visionary and seasoned management teams capable of navigating complex operational challenges.
With profit margins already razor-thin, strategic leadership is essential to implement cost controls, streamline operations, and foster a culture that attracts and retains talent in an environment of acute labor shortages.
For private equity investors, the right management team represents a vital asset—a driving force to scale brands effectively, maximize ROI, and sustain growth even in turbulent times.
This competitive scramble reflects a broader industry shift, where agility, innovation, and strong leadership are no longer optional but indispensable in steering restaurant concepts toward profitability and long-term success.
CapitalSpring, a private equity powerhouse specializing in restaurant and foodservice investments, has long been a key player in identifying untapped potential within the industry.
With over $2.5 billion in committed capital and investments in more than 75 restaurant brands, the firm focuses on building sustainable, scalable businesses through operational expertise and strategic leadership.
When CapitalSpring acquired Mas Mex in late 2023, it was already home to Escalante’s Fine Tex Mex & Tequila, a Texas staple for over 30 years, and Fat Rosie’s Taco and Tequila Bar, a Chicagoland favorite.
However, transforming these beloved brands into a cohesive, multi-brand operator required more than just financial backing—it demanded a visionary leader who could execute a bold growth strategy.
Enter John Iannucci, a seasoned industry veteran with a proven track record in scaling restaurant concepts.
John Iannucci’s extensive career in the restaurant industry made him the ideal candidate to helm Mas Mex. With over 25 years of experience at iconic brands like TGI Fridays, The Cheesecake Factory, and Founding Farmers, Iannucci has cultivated a reputation for operational excellence and brand innovation.
He also served as Vice Chair of Restaurants for the Nevada Restaurant Association and contributed to advocacy efforts through the National Restaurant Association.
“I understood the challenges and opportunities at Mas Mex from day one,” Iannucci said. “The first priority was to stabilize operations, refine the leadership structure, and create a scalable growth framework.”
Iannucci’s strategic vision for Mas Mex centers on three critical priorities: building a strong team, stabilizing operations, and charting a sustainable path for expansion.
From the outset, he focused on assembling a leadership team capable of driving the company’s long-term objectives rather than just addressing immediate needs. This involved restructuring roles and hiring top talent to align with the company’s ambitious growth plans.
Stabilizing operations was another immediate focus, as the company faced financial and sales challenges common in today’s restaurant landscape. To address these, Iannucci implemented purchasing systems and operational checks to tighten controls, manage escalating costs, and ensure consistent performance.
Beyond stabilization, Iannucci laid the groundwork for Mas Mex’s growth strategy, emphasizing shared services to optimize resources across its multiple brands. This approach allows the organization to operate efficiently while preserving the unique identity of each concept.
“We’re building a platform that supports multiple concepts, ensuring efficiency while maintaining brand integrity,” Iannucci explained. By focusing on these foundational areas, he has positioned Mas Mex for significant expansion and long-term success.
Escalante’s long-standing reputation and Fat Rosie’s vibrant appeal offered unique opportunities to merge tradition with innovation. Iannucci emphasized the importance of honoring each brand’s identity while integrating new technologies.
“From scratch kitchens to award-winning margaritas, we’re preserving what makes these brands special,” he shared.
“At the same time, technology like pay-at-table systems and automated scheduling is helping us navigate rising labor costs and improve efficiency. These challenges force us to think differently,” Iannucci said. “Whether it’s streamlining menus or leveraging technology, we’re constantly innovating to maintain our edge.”
Under Iannucci’s guidance, Mas Mex is poised for significant growth, with plans to open three new units in 2024 and explore opportunities for further expansion in the Midwest and Southeast.
“We have a long runway of opportunities,” the Houston, TX based executive concluded. “I’m excited to grow these brands, create memorable guest experiences, and build something that lasts.”.
