A nightmare tale in eight words: Private equity just put money into my favorite BLANK.

The idea that PE spoils everything has become common, yet it stems from real patterns.

Private equity players have often broken firms apart and loaded them with loans, leaving buyers puzzled over changes to beloved items.

Thus it made sense that some loyal customers of Los Tacos No. 1, the Manhattan Tijuana-style taco spot, worried a fresh PE deal might spoil the experience.

Christian Pineda, the chain's CEO and cofounder, explained to BI's Martina Nacach Cowan Ros that he aims to avoid such outcomes and noted that private equity can bring benefits.

The strong response was precisely what drew TSG Consumer, backer of Crumbl and Dutch Bros Coffee, to the taco brand. TSG executive Colin Welch told Martina that Los Tacos No. 1 enjoys devoted fans, and the firm must prove to doubters that nothing will change.

Before dismissing the point, consider a recent case of mostly favorable PE involvement in restaurants. Blackstone spent two years readying founder-led Jersey Mike's for an IPO.

Though the PE firm made moves to formalize operations at the 51-year-old sandwich chain, it left portion sizes and suppliers untouched. Blackstone also set up an employee ownership plan so staff could benefit from this summer's IPO.

Results have been mixed. Shares debuted under the $23 IPO price, a poor signal, and now trade near $18.

Private equity may not appeal, yet few other choices remain.

Los Tacos No. 1 grew over 13 years to ten Manhattan locations plus the sister spot Los Mariscos. Scaling further in a costly city poses challenges. Rising prices for beef, limes, and avocados make expansion plans tougher still.

Other capital sources exist beyond PE, but current conditions make them unappealing.

The debt market stays troubled. With possible additional rate increases looming, borrowing expenses are unlikely to ease soon.

Public markets also offer little welcome. Heavy attention on AI leaves non-AI firms at risk of investor neglect. Even leading AI names like OpenAI show no haste to list publicly.

This discussion does not defend private equity. It simply notes how economic and market conditions have narrowed options for many businesses.