In 1988, Foley sold the company and chain to a former executive from KFC. The meat recipe, which gave Taco Tico tacos their unique flavor, was changed at that time. most likely as a result of corporate influence, in an effort to lower costs. The meat, at that time, was sent in frozen tubes, from the home office. The flavoring was shown to be unpopular and Taco Tico has since switched back to the original flavoring.
Expansion continued and locations are throughout the Midwest and Southeastern states. Taco Tico developed 4 distinctive taco sauces (mild, medium, hot, and volcano) in 1971 and continues to use them today. They also offer a green chili sauce. Newer buildings are adobe with teal-green and orange awnings, signs, and trim.
On March 5, 2013, ten restaurants were closed by the Kansas Department of Revenue for failure to remit $434,939.23 in sales tax collections. The restaurants were later reopened after a bankruptcy filing and a deal made between Ajax International Group and Kansas Department of Revenue. Three independently franchised locations were unaffected by the closure or bankruptcy filing.
On July, 11, 2013 The State of Kansas re-closed 10 Taco-Tico franchise in relation to failure to pay state taxes.