Taco Cabana Announces Alternative Development Test

Business Wire, Nov 4, 1996

SAN ANTONIO--(BUSINESS WIRE)--Nov. 4, 1996--Taco Cabana Inc. (NASDAQ:TACO) announced today that they have entered into an agreement with the San Antonio-based H-E-B Grocery Co. for a two unit test of locating a Taco Cabana inside an H-E-B.

Taco Cabana has leased space inside two H-E-B units, located in the San Antonio area, where a complete Taco Cabana restaurant will be built. The restaurant will include interior seating, with a patio atmosphere, as well as accommodating take-out orders.

The partnership between H-E-B and Taco Cabana is viewed by both as having tremendous potential. San Antonio is home for both chains.

Stephen Clark, president and chief operating officer, said, "We are extremely excited about this. H-E-B is a very highly respected company and is the primary food retailer in many of the same markets where we do business. A chance to expand our points of distribution gives us an opportunity for further growth in some of our core markets."

Mike De La Garza, vice president of Public Affairs & Communications for H-E-B, said, "Taco Cabana is a hometown favorite when it comes to fast, fresh, Tex-Mex food. Locating a Taco Cabana inside an H-E-B makes a lot of sense to us because it is viewed as adding another service of value to our customers. The greater convenience we give our customers, the better we serve them."

Both units are slated to be included as part of store remodels and will open in early 1997.

H-E-B was founded in 1905, in Kerrville, Texas, and today operates 234 stores in 126 communities across Texas, serving more than 4.5 million customers per week.

Taco Cabana was founded in San Antonio in 1978 and currently has a systemwide total of 124 restaurants including 104 company-owned, three joint venture-owned and 17 franchised restaurants.

CONTACT: Taco Cabana, San Antonio

David G. Lloyd, 210/804-0990