A beach-area favorite is planning to expand with a restaurant in Middletown this summer.

Taco Reho, which operates a food truck and restaurant in Rehoboth Beach, will be opening in the former location of Steak 'n Shake at 100 Sandhill Drive off of Middletown-Warwick Road. The Middletown mayor and council approved the plan March 6.

Middletown's Steak ‘n Shake opened in 2018 but closed as the chain struggled because of the pandemic. The number of Steak ‘n Shake locations fell from 626 in 2018 to 506 in 2022, according to a report by QSR, a restaurant industry magazine and website.

The building, about 4,200 square feet, includes a drive-thru.

More Middletown development news:Judge dismisses Capano lawsuit against Middletown over the developer's apartment project

How Taco Reho got its start

Billy Lucas is the founder and one of the owners of Taco Reho, which is part of La Vida Hospitality, the management company for restaurants that include Crooked Hammock Brewery, which has locations in Middletown, Lewes and North Myrtle Beach, South Carolina.

He developed the Taco Reho concept, inspired by his experiences eating the best street food in Los Angeles, said Kelly Repka, Taco Reho marketing manager.

As a roadie helping move equipment and set up the stage for musical performers, Lucas had the chance to cook for celebrities including Jay-Z, Beyoncé, Michael Bublé and the Jonas Brothers.

When he moved to Rehoboth, he started the Taco Reho food truck in 2014 with many of the same dishes he served to the stars.

Last year, he opened his first restaurant at 18784 Coastal Highway in Rehoboth, combining his love of cooking and music.

“We will be updating the [Middletown] building to Taco Reho's distinct music-inspired branding … design elements paying homage to the greatest rock bands of all time,” Repka said.

The color theme is black, white and red with wall art by local artists.

“Taco Reho Middletown will also have an expanded bar area with the same iconic look and feel of the guitar bar in Rehoboth, as well as a stage for live music and a patio with an overhang for al fresco seating,” Repka said.

The southern New Castle County site was attractive because of the growth in the area and the chance to serve customers who are already familiar with the restaurant from their visits to the beach.

“Taco Reho saw an opportunity to give the people of Middletown a different option – serving up fresh, fast, exciting food and an experience that could only be offered by such a unique brand,” Repka said.

The management team plans to hire about 40 workers at the new restaurant.

Development north of Middletown:A Royal Farms is among 2 stores planned in southern New Castle County. We have details.

What's on the menu?

The menu will include the same lunch and dinner dishes offered in Rehoboth, but with an expanded cocktail list.

Taco Reho serves tacos, burritos, quesadillas called “dillas,” buffalo shrimp and hot dogs like their “Danger Dog” wrapped in bacon with black beans, shredded cheese, avocado, yellow mustard, chipotle mayo, queso fresco, pickled red onion, pico and cilantro.

All of the food is made fresh to order.

“Just like Rehoboth, we will also have the industry’s best tortilla press in-house for making fresh organic tortillas from Mexican heirloom corn kernels every day,” Repka said.

Reporter Ben Mace covers real estate, housing and development news. Reach him at rmace@gannett.com.

This article originally appeared on Delaware News Journal: Taco Reho expanding from Rehoboth site to Middletown. What to know