Taco Bell franchisee Diversified Restaurant Group reshuffles leaders to drive growth

One of Taco Bell’s largest franchisees has redrawn its leadership map across more than 360 restaurants, a move that will shape how stores are run as Diversified Restaurant Group pushes for more growth. Todd Kelly was named brand president, Tom Douglas became chief operating officer and Jason Dunn took the chief restaurant officer role, putting clear owners on brand direction, daily operations and restaurant execution.

Kelly had been serving as COO and will now focus on brand vision, operational strategy and long-term growth priorities. Douglas will oversee day-to-day restaurant operations, while Dunn will lead brand relations and restaurant excellence. Diversified Restaurant Group said the changes were designed to improve operational clarity, strengthen cross-functional collaboration and position the company for its next phase of strategic growth. For restaurant teams, that kind of split usually means fewer gray areas between field leadership, operations and brand standards, and a more defined chain of command when problems hit the floor.

The restructuring also lands at a moment when DRG is still experimenting with what Taco Bell restaurants can be. The franchisee operates several Cantina locations and was the first franchisee to add the Live Más Café concept, which has grown to more than 30 locations. Taco Bell opened the first Live Más Café in San Diego in November 2024, later said beverages were part of a plan to reach $5 billion in system sales by 2030, and laid out a plan to add 30 more Café locations across Southern California, Dallas and Houston by fall 2025, with several in partnership with DRG. Taco Bell’s concept materials say the café offers 20-plus new drinks, while the Chula Vista location page says Bellristas serve more than 25 handcrafted beverages.

That matters for workers because innovation at the unit level changes training, pacing and the way shifts are staffed. More beverage volume can mean more line complexity, more emphasis on speed and consistency, and more pressure on managers to keep labor and service times under control. It can also create new openings for trainers, shift leads and assistant managers if DRG keeps opening cafés and new units at the same pace.

The broader context is a Taco Bell system that has been leaning hard into growth. The brand said it reached $1 billion in profit for the first time in 2024 and more than $6 billion in digital sales, up 32%. In that kind of environment, a franchisee’s executive shuffle is more than internal housekeeping. It is a signal that store-level standards, promotion paths and field accountability are likely to get tighter as DRG tries to scale without losing control of the restaurants that drive its business.