With the addition of Uncle Julio’s, major multi-unit franchisee Sun Holdings is becoming a larger player as a brand owner and franchisor. It now has Mexican brands in the QSR, fast-casual and casual dining sectors.
Sun Holdings, a multi-brand franchisor and franchisee with more than 1,200 locations across the United States, has been strengthening its presence in the Mexican category over the last few years.
After acquiring the quick-service franchise Taco Bueno in 2019, it picked up fast-casual concept Freebirds World Burrito in August last year. To finish 2024, Sun Holdings acquired casual dining brand Uncle Julio’s, which has 39 locations. The process began in mid-2024 with Sun Holdings acquiring the company’s debt before netting its assets in December.
“We had been looking for other Mexican brands to expand with and found the opportunity to buy the debt and the foreclosed assets with Uncle Julio’s,” said Sun Holdings President and CEO Guillermo Perales. “We’re looking for areas to expand with new sites, too. We already have three in the pipeline, as we’re an aggressive developer.”
Sun Holdings is No. 2 on the Franchise Times’ Restaurant 200 ranking, with its portfolio stretching well beyond Mexican cuisine. Founded in 1997 and based in Texas, Sun Holdings is a franchisee of Applebee’s, Arby’s, Burger King, Papa Johns, Popeyes Louisiana Kitchen, McAlister’s Deli, Golden Corral, IHOP, T-Mobile and GNC.
With its Mexican brand trio, Perales said the goal is to franchise each concept once they’re ready. But first, some work is needed. For example, with Uncle Julio’s, Perales said he plans to roll out smaller, cantina-style restaurant prototypes.
“The strategy for us also includes looking at new menu ideas,” Perales said. “We’re looking to choose where we should cross the line and have more Mexican items, versus broader products. That means deciding if we want to bring in some products that are more unique, spicy and different. So, we’re looking at what ideas can be winners on the menu. Where we can innovate with successful Mexican cuisine that can be translated to the market and create a ‘wow’ effect.”
Perales said the timing with Uncle Julio’s, a brand established in 1986, is opportune, citing On the Border Mexican Grill & Cantina’s recent bankruptcy filing and Chuy’s being bought out after some closures. Perales said Uncle Julio’s, meanwhile, has proven its success across multiple states including Illinois, Virginia, Washington, Florida and Texas.
Since the acquisition, Perales said the Sun Holdings team has made a point of communicating the potential menu changes and anticipated growth for the brand, which is expected to ramp up in the near future.
“On average, we build 40 to 50 units per year,” Perales said. “Because of the construction costs this year, we’re likely to be down to 35. But we’re still actively building and I think Uncle Julio’s will be a good growth vehicle for us.”
The 39 existing units brings Sun Holdings’ Mexican concept locations to more than 200; Taco Bueno has 130, while Freebirds has 64. Across all three concepts, Perales said they’ve started a rebranding effort.
“We were just meeting recently to discuss the new signage and logo for Freebirds,” Perales said. “In two weeks, we’re having more meetings on what kind of log and signage we should do for the new Uncle Julio’s, as well as what kind of remodels are going to be needed for the old stores. It’s all a work in progress.”