Taco Cabana was founded in 1978 in San Antonio, Texas, by Felix Stehling. The original location was an abandoned Dairy Queen drive through. The original design of the building gave it an open-air feeling, which Stehling continued to recreate at other locations. Unfortunately, all of the outdoor patio furniture was stolen after the first day. Stehling then decided to keep his locations open 24 hours to prevent this in the future.
Today, almost all 166 locations are open 24 hours and have drive-through service. The company focuses on preparing fresh food each day, rather than relying on pre-packaged food as many other restaurants do. The company was purchased by Fiesta Restaurant Group in 2012 and works as a subsidiary.
Taco Cabana opened a new location in Albuquerque, New Mexico, in May of 2018.
The company is perhaps best known for it’s freshly made food, especially fire grilled fajitas, that customers can watch being made, as well as their patio and open air, semi-enclosed seating areas.