Two Pesos
The Two Pesos chain was sold to Taco Cabana in 1993 after losing a drawn-out trade dress suit that appeared before the United States Supreme Court.Two Pesos was started in 1985 by Houston restaurateur Marno McDermot, who had been in negotiations with Taco Cabana's management to take the patio-restaurant chain nationwide.When Taco Cabana's founding Stehling brothers rejected his advances, McDermot decided to open up his own chain of similarly themed patio-dining Tex-Mex restaurants under the Two Pesos name.When Taco Cabana entered the Houston market, they sued Two Pesos for stealing their business concepts and "trade dress."[1] As a result of the ruling, in 1993, Bombaywala sold Two Pesos, by then profitable, for $30 million to Taco Cabana rather than making the changes required by the judgment.