The Legal Battle Over "Taco Tuesday": Who Owns the Phrase?

The Legal Battle Over "Taco Tuesday": Who Owns the Phrase?

A Trademark War Over Tacos? Yes, Really.

In the world of intellectual property law, trademarks protect businesses from unfair competition. But what happens when a phrase becomes too popular for its own good? That’s exactly what happened in the long and surprisingly heated legal battle over "Taco Tuesday."

For years, a single company owned the rights to this beloved alliterative phrase, sending cease-and-desist letters to businesses that dared to use it. But in 2023, a new challenger stepped in to "free Taco Tuesday" for all. Let's break down the legal case, its implications, and what it means for businesses and trademarks going forward.

Who Owned the "Taco Tuesday" Trademark?

If you've ever run a restaurant or marketed a taco special, you might be surprised to learn that "Taco Tuesday" was actually a registered trademark in most U.S. states.

Since 1989, the phrase was owned by Taco John’s, a regional fast-food chain based in Wyoming. With over 400 locations across the Midwest and West, Taco John’s aggressively defended their trademark, sending cease-and-desist letters to smaller restaurants using the phrase. Their stance was simple: If you weren’t Taco John’s, you couldn’t legally use "Taco Tuesday" in your marketing.

What Is a Trademark and Why Does It Matter?

A trademark is a legally registered word, phrase, symbol, or design that distinguishes a brand’s goods or services. Owning a trademark gives a business exclusive rights to use that term in commerce and the power to take legal action against unauthorized use.

For more on U.S. trademark law, check out the USPTO’s official trademark guide.

The Legal Challenge: Taco Bell vs. Taco John’s

In May 2023, Taco Bell filed a legal petition with the U.S. Patent and Trademark Office (USPTO) to cancel Taco John’s exclusive trademark rights, arguing that "Taco Tuesday" was too generic to be owned by any one company.

Taco Bell’s Argument:

• "Taco Tuesday" had become a widely recognized phrase used by businesses across the country.

• No single company should have the right to own and restrict the phrase.

• Consumers associate "Taco Tuesday" with tacos in general, not a specific brand—making it a generic term, which cannot be trademarked under U.S. law.

To strengthen their case, Taco Bell launched a marketing campaign urging people to join their fight to "liberate" Taco Tuesday. They even gained support from basketball superstar LeBron James, who had previously tried (and failed) to trademark the phrase himself.

Read Taco Bell’s full legal petition here.

The Inevitable Defeat: Taco John’s Surrenders

Faced with legal pressure, public scrutiny, and a strong challenge from a major competitor, Taco John’s ultimately decided to give up its claim to "Taco Tuesday" in July 2023.

In a public statement, Taco John’s CEO admitted that the cost of defending the trademark wasn't worth it, humorously adding:
"We’d rather spend our money on tacos than lawyers."

With that, the phrase "Taco Tuesday" became free for all to use, except in New Jersey, where Gregory’s Restaurant & Bar still holds the trademark. (Yes, there’s another Taco Tuesday trademark—only in New Jersey!).

What This Means for Businesses and Trademark Law

The Taco Tuesday case is a valuable lesson in trademark law and a prime example of what happens when a phrase becomes too common to be enforceable. Here’s what businesses should take away from this case:

1. Generic Terms Can’t Be Trademarked Forever

• Trademarks protect distinctive brand identifiers, but common phrases used by the public can lose protection.

• This concept, known as genericide, has led to the loss of trademarks like "aspirin," "escalator," and "thermos."

2. Defending a Weak Trademark Can Backfire

• Taco John’s spent decades policing the phrase, but their actions led to public backlash.

• Instead of strengthening their brand, they ended up handing Taco Bell a marketing victory.

3. Your Trademark Must Be Distinctive to Be Enforceable

• Strong trademarks are unique and tied to a specific brand identity (e.g., "Nike" or "Coca-Cola").

• Businesses should be cautious about trademarking everyday phrases, as they may eventually lose exclusivity.

Final Verdict: Taco Tuesday Is Free for All!

With Taco John’s surrender, any restaurant, bar, or taco truck can now use "Taco Tuesday" without legal risk—except in New Jersey (for now). This case serves as an important lesson in trademark law, showing that popular phrases may not remain protected forever.

So, whether you're a taco shop owner or just a taco enthusiast, you can now celebrate Taco Tuesday without worrying about a cease-and-desist letter.

For more legal insights, visit Atreya Choudhary’s Blog