Downtown Indianapolis Taco Bell operator seeks to shut down planned Cantina
Update: This story was updated on Tuesday to reflect the Taco Bell Cantina's plans to open on Saturday.
The owner of Circle Centre Mall's Taco Bell franchise has asked a Marion County court to block the opening of an anticipated Taco Bell Cantina across the street in downtown Indianapolis.
Alfarah Restaurant Group, which operates the Taco Bell in the mall's food court, filed a lawsuit in Marion County Commercial Court against the fast food chain's franchising company and Flynn Restaurant Group, the franchisee planning to open the Cantina, in November.
After news of the lawsuit broke Monday, Flynn announced Tuesday morning the Cantina would open to the public at 10:30 a.m. Saturday.
The legal complaint claims the Cantina, which would use a version of Taco Bell's menu and feature alcohol sales, live music and later operating hours, violates the Indiana Deceptive Franchise Practices Act, which deals with franchisor/franchisee competition within the state.
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The lawsuit was first reported by the Indiana Business Journal.
The new Taco Bell Cantina would "rob Alfarah's business" by providing the same food options within a small geographic area, according to the lawsuit. The Cantina will occupy the ground floor, basement and mezzanine of the Lieber Building at 24 W. Washington St.
Although Alfarah and Taco Bell's franchise agreement does not guarantee Alfarah exclusivity in the area, the lawsuit said, state law does not allow "the franchisor to compete unfairly with the franchisee within a reasonable area." The mall location and Cantina would be about one-tenth of a mile apart.
A local attorney for Flynn Restaurant Group and Taco Bell's media contact did not respond to a IndyStar's requests for comment. According to its website, Flynn is based in California and the largest restaurant franchisee in the nation.
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On Monday, Flynn asked the court for a one-month extension to formally respond to the lawsuit. Taco Bell has not yet responded to the filing.
As part of its lawsuit, Alfarah attached an email purported to be from a Taco Bell executive who said the mall location is a "captive restaurant," in that it primarily serves customers visiting a host location.
Alfarah rejects the characterization, saying in the lawsuit that its restaurant attracts "office workers, conventioneers and others" in addition to mall shoppers. It also claims that its franchise agreement with Taco Bell makes no such distinction.
The lawsuit asks for a judge to permanently block the Taco Bell Cantina from opening.
In the Tuesday morning news release, Flynn noted the Cantina would feature "classic menu items," "specialty beverages like piña coladas, margaritas, orange creamsicles and liquor versions of the brand’s classic Freezes" and local beers including Sun King.
Saturday's opening event will also feature live music from 8 p.m. until midnight.
The Cantina is the first of its kind in Indiana. It will be open daily from 8 a.m. until 4 a.m.
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Rory Appleton is the pop culture reporter at IndyStar. Contact him at 317-552-9044 and rappleton@indystar.com, or follow him on Twitter at @RoryEHAppleton.
This article originally appeared on Indianapolis Star: Taco Bell Cantina Indianapolis: Franchise owner asks court to block opening
