Xperience Restaurant Group expands into Texas with acquisition of RM Restaurant Group portfolio

Why is Xperience Restaurant Group acquiring Rio Mambo and THE RIM from RM Restaurant Group in Texas?

Xperience Restaurant Group, one of the leading players in the American casual and fine dining landscape, has made a strategic foray into Texas by acquiring a six-restaurant portfolio from RM Restaurant Group. The announcement confirms that the California-based restaurant operator is expanding its footprint to include four Rio Mambo Tex Mex y Mas locations and two THE RIM scratch craft eats restaurants across Fort Worth, Colleyville, Burleson, and Weatherford, Texas.

Although financial terms of the transaction have not been publicly disclosed, the acquisition immediately strengthens Xperience Restaurant Group’s national presence and marks its first physical entry into the high-growth Texas market. The addition of Rio Mambo and THE RIM aligns with the restaurant group’s continued push for regional diversification and culinary variety, particularly in markets where Tex-Mex and retro-American dining concepts have sustained high customer loyalty.

How do Rio Mambo and THE RIM strengthen the Xperience Restaurant Group portfolio?

With a combined total of six operating units, RM Restaurant Group’s portfolio introduces new regional dining concepts that enhance the cultural and culinary diversity within the broader Xperience Restaurant Group system. Rio Mambo Tex Mex y Mas is best known for its vibrant menu of Tex-Mex classics, specialty blended margaritas, and a commitment to dietary inclusivity—offering both gluten-free and low-fat options alongside traditional favorites.

Meanwhile, THE RIM scratch craft eats brings a differentiated offering to the table with a retro-American menu that emphasizes house-made, scratch-prepared comfort food. Operating in Fort Worth and Burleson, the two THE RIM outlets complement Xperience Restaurant Group’s casual dining expertise with a unique brand identity that resonates with local Texan sensibilities.

Randy Sharpe, Chief Executive Officer of Xperience Restaurant Group, emphasized the importance of continuity and cultural fit in the acquisition. “We are honored to welcome founder Brent Johnson and the Johnson family to our family of restauranteurs,” Sharpe stated. He added that the group is committed to preserving the legacy of both restaurant brands while staying engaged in the local communities they serve.

What is the strategic significance of Xperience Restaurant Group’s expansion into Texas?

Xperience Restaurant Group’s move into Texas reflects a calculated expansion strategy aimed at tapping into a resilient and rapidly growing hospitality market. The Texas restaurant sector has seen robust post-pandemic recovery, driven by population growth, real estate development, and consumer demand for diverse dining options. Metro areas like Fort Worth and Dallas are especially attractive due to their expanding middle-class demographics and increasing interest in experiential dining.

By acquiring Rio Mambo and THE RIM, Xperience Restaurant Group gains immediate access to an established customer base, trained staff, and prime real estate locations without the overheads and uncertainties of greenfield expansion. The move also enables the portfolio operator to cross-leverage supply chains, technology platforms, and operational best practices from its broader brand family, which includes iconic chains like El Torito, Chevys Fresh Mex, Acapulco, and SOL Mexican Cocina.

Institutional investors view such tuck-in acquisitions as an efficient way to enter new regional markets with minimized operational risk. For Xperience Restaurant Group’s parent company, Z Capital Partners—a private equity firm under Z Capital Group—the move aligns with its investment thesis of value creation through operational scale, brand synergy, and disciplined expansion.

What other growth plans are in motion for Xperience Restaurant Group in 2023?

In addition to its newly acquired Texas portfolio, Xperience Restaurant Group is actively pushing forward on its East Coast ambitions. The group has confirmed plans to open new SOL Mexican Cocina locations in New York City and Boston later in 2023. This East Coast expansion marks a continuation of the brand’s bi-coastal growth strategy, positioning its upscale Mexican dining concept in key metropolitan markets where demand for elevated Latin cuisine is growing steadily.

Across its national footprint, Xperience Restaurant Group currently operates 68 restaurant locations under a diverse banner of brands, including El Torito, El Torito Grill, Chevys Fresh Mex, Acapulco, SOL Mexican Cocina, Solita Tacos & Margaritas, Sinigual, Las Brisas, and Who Song & Larry’s. The company has been steadily increasing both same-store sales and unit count since its Z Capital-backed restructuring.

This ongoing expansion—spanning West Coast legacy brands, East Coast launches, and now a Texas market entry—demonstrates a balanced growth approach that prioritizes both operational resilience and regional adaptability.

How does Z Capital Partners fit into the long-term strategy of Xperience Restaurant Group?

Z Capital Partners, the private equity fund management arm of Z Capital Group, continues to play an instrumental role in the financial and strategic planning of Xperience Restaurant Group. Known for its hands-on operational support, Z Capital Partners specializes in distressed asset turnarounds, consumer brand revitalization, and portfolio company scaling. Since acquiring Xperience Restaurant Group, the firm has helped streamline operations, reposition legacy brands, and identify strategic growth opportunities.

The Texas acquisition further exemplifies Z Capital’s private equity playbook: acquiring high-potential regional brands and integrating them into a larger, professionally managed hospitality platform. While the current transaction size remains undisclosed, such bolt-on acquisitions typically fall within a range that allows for rapid integration, cost optimization, and accretive growth without requiring external financing.

Analysts covering the casual dining sector have pointed out that portfolio diversification—across cuisine types, geographies, and price points—is becoming a critical risk mitigation strategy. As inflation and labor shortages continue to pressure the hospitality sector, multi-brand operators like Xperience Restaurant Group are better positioned to reallocate resources and shift marketing focus across segments based on performance and macroeconomic trends.

What are analysts saying about the future of regional restaurant group consolidation?

The Xperience Restaurant Group–RM Restaurant Group transaction highlights a broader industry trend of mid-cap restaurant consolidation, particularly in secondary markets with favorable demographics. Analysts believe that regional concepts like Rio Mambo and THE RIM are prime acquisition targets because of their established customer base, localized branding, and steady EBITDA performance.

Furthermore, private equity-backed restaurant operators are showing a growing appetite for such acquisitions as they seek to build multi-regional networks that can resist demand shocks and shift operational capacity in real time. Texas, Florida, and Arizona continue to feature prominently in this M&A trend, driven by population inflows and economic resilience.

By strategically entering the Texas market while also expanding on the East Coast, Xperience Restaurant Group is effectively triangulating its growth trajectory to hedge against regional volatility and capture emerging dining trends.

Can Xperience Restaurant Group’s acquisition unlock long-term value in Texas?

The acquisition of Rio Mambo Tex Mex y Mas and THE RIM scratch craft eats marks a calculated and potentially high-reward expansion for Xperience Restaurant Group into the lucrative Texas market. With six new restaurants added to its roster, the California-based hospitality operator strengthens its presence in casual and fine dining while diversifying its regional footprint.

Backed by Z Capital Partners and supported by a diversified brand portfolio, Xperience Restaurant Group appears well-positioned to extract synergies, optimize operations, and capitalize on growing consumer demand in key Sun Belt markets. If successful, this acquisition could serve as a blueprint for similar regional roll-ups across the U.S.

As restaurant consolidation accelerates and consumers seek authentic, high-quality dining experiences, Xperience Restaurant Group’s Texas play may prove to be both timely and strategically astute.