According to The Strange History Of Taco Tuesday, the phrase "Taco Tuesday" was coined by the Mexican food chain, Taco John’s, in 1989 who have since trademarked the phrase but after they filed a suit against another restaurant chain resulting in bad press, they have not enforced the trademark since.
Taco Tuesday is a custom in many US cities of going out to eat tacos or in some cases select Mexican dishes typically served in a tortilla on Tuesday nights. Restaurants will often offer special prices, for example, "$1 fish tacos every Tuesday night". It is popular in many big cities across the nation and especially popular in the beach cities of Southern California. Taco Tuesday is similar to Happy Hour in that restaurants vary in their participation, hours, and specials offered.