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Del Taco

Information based on 2024 FDD
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Brand Highlights
  • Founded in 1964
  • Franchising Since 1967
  • 421 US Franchises
  • $1,312,200 - $3,085,000 Investment Range
  • $1,630,406 Average Gross Revenue
  • 5% Royalty Fee
  • $35,000 Franchise Fee
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Brand Description

Del Taco, established in 1964, has evolved into a beloved quick-service restaurant chain that masterfully blends Mexican-inspired cuisine with American fast-food favorites. Known for their innovative menu that goes beyond traditional tacos, Del Taco sets itself apart by offering fresh-made-to-order meals using quality ingredients, including freshly grilled chicken, hand-grated cheddar cheese, and handmade pico de gallo.

What truly distinguishes Del Taco in the competitive fast-food landscape is their unique combination of Mexican staples alongside American classics like their famous crinkle-cut fries and premium shakes. Their menu caters to diverse dietary preferences, featuring everything from value-priced tacos to Epic Burritos, and including vegetarian options with Beyond Meat alternatives.

The brand has built a strong reputation for generous portions, competitive pricing, and consistent quality across their locations. Their commitment to customer service is evident through their extended hours of operation, with many locations offering late-night service until 2 AM or later. Del Taco's modern restaurants feature contemporary designs with both indoor and outdoor seating options, creating a welcoming atmosphere for dine-in customers.

Del Taco's success is built on their ability to maintain high food quality while offering exceptional value, making them a strong competitor in both the Mexican fast-food and traditional quick-service segments. Their innovative menu development, commitment to fresh ingredients, and focus on customer satisfaction have helped them build a loyal customer base and continue their expansion across the United States.

DID YOU KNOW?

How much does it cost to start a franchise with Del Taco?

$1,312,200
$3,085,000
Did you know that bringing Del Taco's beloved Mexican-American fusion concept to your community requires a total investment between $1,312,200 and $3,085,000, which covers everything from the $35,000 franchise fee to equipment, build-out costs, and working capital needed to serve up those famous crispy tacos and epic burritos that have made Del Taco a West Coast favorite since 1964?
Financial Summary
Franchise Fee
$35,000
Investment Range
$1,312,200 - $3,085,000
Investment Midpoint
$2,198,600
Minimum Cash Required
$1,312,200
Royalty Fees
5%
Brand Fund
4%
Brand Bragging Rights
60-year proven restaurant concept
592 locations demonstrate system scale
Above-average gross revenue performance
Established Mexican fast-food positioning
Mature franchisor support infrastructure
Multi-daypart breakfast and lunch offerings
Financial Analysis
Del Taco requires a substantial investment of $1.31-$3.09 million, positioning it in the premium tier of fast-food franchises. This investment significantly exceeds sub-sector averages of $713K-$1.81M, reflecting the brand's established market position and comprehensive restaurant infrastructure requirements. The higher capital requirements typically include kitchen equipment, point-of-sale systems, signage, and initial inventory for full-service Mexican fast-food operations.

The 60-year operational history since 1964 demonstrates exceptional system maturity, while 592 units indicate substantial scale and proven replicability. This extensive footprint suggests strong franchisor support infrastructure and refined operational systems. The Mexican fast-food segment benefits from growing consumer demand for authentic flavors and customizable menu options, though faces intense competition from established players.

Reported gross revenue of $1.63 million exceeds sub-sector averages by approximately 42%, potentially reflecting the brand's market positioning and operational efficiency. However, prospective investors should carefully review territory availability, as the mature system may limit prime location access in established markets.

Ideal candidates require substantial liquid capital and restaurant management experience, given the operational complexity of food service operations. The investment level suggests targeting experienced multi-unit operators or well-capitalized first-time franchisees with strong business backgrounds. Market demographics favoring diverse dining options and convenience-focused consumers align well with Del Taco's positioning. Prospective investors should thoroughly review the FDD and conduct comprehensive due diligence before proceeding.
Expected Investment Range
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Average Gross Sales
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Financing
Financing Details

Franzy connects you with top-tier financing partners to help secure the funds to invest in a franchise like Del Taco. Whether you're looking for a loan or exploring other financial products, our partners provide expert guidance to ensure you obtain the necessary capital. They specialize in offering solutions tailored to the needs of franchisees, making the process of securing financing smooth and straightforward.

Why Financing with Franzy Partners?

Choosing to finance through Franzy's partners ensures you get the best terms and support for your franchise investment. Our partners have extensive experience in the franchising industry and offer specialized financial solutions tailored to your needs. With competitive interest rates and flexible repayment options, you can find the right financing plan that fits your budget and goals. Our partners are committed to providing personalized guidance throughout the financing process, making it easier for you to secure the necessary funds and confidently move forward with your franchise venture.

Finance Partners
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CRF USA

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First Bank of the Lake

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Golden Capital Solutions

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Location Analysis
Del Taco maintains a strategic presence across multiple states, with widespread coverage demonstrating strong regional concentration in the Western United States. The brand shows particularly strong presence in California and notable market penetration in Arizona, creating a solid West Coast foundation. The expansion into southeastern markets like Georgia and northern territories like Michigan shows successful market adaptability across diverse regions.

Customer satisfaction metrics are notably strong, with consistently positive ratings across numerous customer reviews, indicating operational excellence across markets. This performance suggests effective market adaptation and strong brand reception in both established and emerging territories.

The franchise shows particular strength in markets with high Hispanic populations and areas with strong quick-service restaurant demand. Growth opportunities exist in underserved markets between established territories, particularly in the Southeast and Mountain regions. Successful locations typically feature high visibility, strong daytime population density, and proximity to major retail corridors or employment centers.

Ideal locations should target areas with median household incomes of $45,000-$75,000, strong lunch crowds, and late-night dining potential. The brand's Mexican-American menu positioning works particularly well in markets with diverse demographic profiles and established quick-service competition.
Total US Locations592
Open Franchises421
Corporate Locations171
Average Sq. FootN/A
Territory Map

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Franchise Net Unit Growth
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Additional Information

Executive Team

Get to know the leadership behind Del Taco. Learn about the experience and expertise of the executive team guiding Del Taco's success. For more details, refer to Item 2 of the Franchise Disclosure Document (FDD).

Litigation

Review any legal actions or pending litigation involving Del Taco. Understanding the legal history helps assess potential risks and the brand's business practices. For more details, refer to Item 3 of the Franchise Disclosure Document (FDD).

Bankruptcy

Review Del Taco's bankruptcy history and any filings by key personnel or affiliates. This critical information provides transparency about the brand's financial stability and management. For more details, refer to Item 4 of the Franchise Disclosure Document (FDD).

Franchisor Assistance

Learn about Del Taco's comprehensive support system for franchisees, including initial training programs and continuous operational assistance. Understanding the available resources and support structure is crucial for franchise success. For more details, refer to Item 11 of the Franchise Disclosure Document (FDD).

Frequently Asked Questions
Disclaimer

The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

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