With two stores already open in the Orlando, Florida area, the fast-food chain Del Taco is planning to open 10 additional stores in the city over the next few years.
To do so, the brand is looking for operators to join as franchisees of five or more Del Taco stores and is offering incentives like "discounted initial fees and reduced royalties for up to three years, aiding unit-level profitability early on in the initial entrance phase of development in a new market," according to a recent press release.
Founded in 1964, the West Coast brand has 560 stores in 14 states but is aiming to expand on the East Coast.
“From our culinary and marketing teams to our operations and franchise executives, the entire Del Taco leadership group is guided by our focus on unit-level economics, providing the blueprint for success,” said Laura Tanaka, Del Taco’s director of franchise development in a press release. “Additionally, our working kitchens and a wide range of value, mid-tier and premium products designed to appeal to consumers across multiple dayparts and occasions are a competitive advantage that resonates with consumers regardless of market.”
The brand, that prides itself on being the "nation’s second-leading Mexican quick-serve restaurant," is taking a hands-on approach and Tanaka will be hosting meetings with multi-unit operators in the Orlando area next week.
2018 has been a strong year for the fast food chain too. The chain's total revenue increased 6.8% to $112.6 million in the first quarter of 2018.
“Restaurant results were generally in-line with our expectations and we are pleased to reaffirm our guidance for the year. System-wide comparable restaurant sales growth of 3.7%, or 7.9% on a two-year basis, was a strong outcome, and we view the franchise restaurants 5.2% comparable restaurant sales increase as a reflection of Del Taco’s strength in varied geographies. We are very pleased with the continued AUV growth within our franchise base which is driving increased traction on franchise development across the country," said John D. Cappasola, Jr., president, and CEO of Del Taco in a press release announcing the 2018 fiscal first-quarter results earlier in May.
Do you think Del Taco will catch-up to its rival and master marketer Taco Bell?