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Because trademarks are about market. There is no reason for a business in California to have a say over what a business in New York is named if neither will be entering the other's market.
It happens sometimes that two businesses will have the same mark in different markets but one outpaces the other in growth. If one starts encroaching on the other it typically comes down to a determination of which one was used first in that area. This is why you have the example I gave. It's also why Burger King is called Hungry Jack's in Australia.
Another issue is one of identification. Is this mark associated with this business? Unless you happen to live in an area where there's a Taco John's did you even know they existed? I had never heard of them because the nearest one to me in is fuckin' Arkansas about 400 miles from here. They're concentrated in the midwest. It's a regional chain. Why should they have any claim to a trademark in Florida? Simple answer is: They shouldn't and don't. The term is too generic and has been used by places that sell tacos for longer than this company has been around. They knew they would lost just on basic facts and no matter how they try to spin it as "BIG COMPANY BAD" the fact is they shouldn't have had the mark in the first place.