San Diego-based Zax Bytes is the second-largest seller of digital tacos in the United States, according to the latest Food and Wine data.
The San Diego company is owned by Zaxi Partners, the private investment arm of Zaxa, a food trucking company that has its headquarters in Zaxbros, San Diego.
Last year, Zaxes revenue hit $4.7 billion, according the latest data from the Food and Retail Marketing Association.
The Zax bytes franchise business, which includes two other Zaxas franchises in San Diego and San Francisco, had revenue of $3.3 billion, the data show.
Zaxies franchise sales were up 12.2% year-over-year to $3,621 million in 2016, the most recent year for which figures are available.
The company’s revenues from digital tacos, which include tacos and burritos, rose 14.4% in 2016.
The sales are growing faster than digital sales at Taco Bell, according a recent report from The NPD Group.
Taco Bell’s digital tacos are sold in about 15% of the restaurant’s restaurants, according its latest revenue report.
Taco’s franchisees have also seen a bump in digital sales, which rose 15.5% year over year to $1.3 million in fiscal year 2018.
Taco Bytes said it would increase its digital tacos business in 2019.
It did not disclose the specific growth targets.
Z Axby, which also owns the ZZT digital taco business, said last year it would expand digital tacos into six more states.
The Taco Bell franchise is based in Los Angeles, but operates in San Francisco and New York.