If you want to start your own business in fast food, a Del Taco franchise might be right for you. It’s a big name in Mexican-style quick meals in the United States, around since 1964. Del Taco has over 580 places across the country and is a favorite spot for tacos, burritos, and more.
This article will give you all the details about starting a Del Taco franchise, including its costs, fees, training, and support from the people who run the business. You’ll also learn about rules on owning a franchise, how to renew it, and what you might earn from it.
About Del Taco
Del Taco offers good food with fresh things to make it and quick service. It’s a mix of a fast food place and a nicer sit-down restaurant.
You can get tacos, burritos, burgers, and fries at Del Taco any time of the day or night. Del Taco knows how to keep customers coming back, which helps them stay ahead of the competition.
History Of Del Taco
Del Taco, a top place for Mexican-American quick meals, started in 1964 in California. At the beginning, they only sold tacos, fries, and shakes, but people loved it. Three years later, there were 29 stores in California, and business was up by over 300%.
In 1969, new people bought Del Taco and added new foods like burritos, nachos, hamburgers, and breakfast items. In the 1970s, Del Taco became very popular in Southern California, with more than 150 locations.
Today, Del Taco has over 600 restaurants in 21 states across the United States. The company keeps focusing on fresh food, made when you order it, with friendly service and good prices. Del Taco is still a top place to go for Mexican food, and people of all ages love it.
Del Taco Franchise Model
Initial investment: $862,700 – $2,136,500
Royalty fee: 5% of sales
Franchise fee: $35,000
Total Outlets: 600
Reasons To Invest
- Proven performance and demand in new markets supported by smart advertising.
- A growing brand that could help you make more money.
- Second-best brand in the fast Mexican quick-service restaurant category.
- Fresh, creative food that many people like.
- Available areas across the country for you to start a business.
Del Taco has plans to help get more people to love the brand. These include things to use where the food is sold, mail and print ads, social media, and TV, cable, and radio spots. They also use online ads on Pandora and Hulu.
Common Franchising Rules
When you own a taco franchise, such as a Del Taco, there might be some basic restrictions or rules that you have to follow. These could include:
- Location Restrictions: Often, you must open the franchise in an area that the company approves. They may not allow two franchises too close to each other.
- Menu Restrictions: You might be required to only sell items from the approved menu. This ensures that every franchise offers the same food quality and taste.
- Operating Hours: The company might set specific opening and closing times, so all locations have the same hours.
- Use of Branding: You’ll likely have to use the company’s logo, advertising materials, and follow their guidelines on how to decorate the restaurant.
- Quality Standards: The franchise will have rules about how the food is made, the cleanliness of the restaurant, and the training of the staff. This helps keep the same level of quality across all locations.
- Royalty Fees: Most franchises require you to pay a percentage of your sales back to the company. This is often called a royalty fee.
- Renewal Terms: There may be specific rules about how and when you can renew your franchise agreement.
- Resale Restrictions: If you want to sell your franchise, the company might have to approve the buyer.
These rules help keep the same look, feel, and quality across all the restaurants in the franchise.
Del Taco Comparison
|Company||Del Taco||Taco Bell|
|Initial Investment||$862,700 – $2,136,500||$525,100 – $2,622,400|
|Annual Revenue||$513 Million||$2.03 Billion|
Frequently Asked Questions
Does Del Taco offer Franchise?
Del Taco is a fast-food restaurant chain that specializes in American-style Mexican cuisine. It offers franchise opportunities to investors with a proven business model.
How much does a Del Taco franchise cost?
An initial investment required to open a Del Taco Franchise is $862,700 – $2,136,500, with a franchise fee of $35,000.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.