Del Taco

Del Taco entered the quick service restaurant sector on September 16, 1964, when Ed Hackbarth and David Jameson opened the first Casa Del Taco in Yermo, California. Its opening menu included 19¢ tacos, tostadas, fries, and 24¢ cheeseburgers. Del Taco is headquartered in Lake Forest, California. As of early 2025, it operated approximately 595 locations in 18 U.S. states. Reports for 2025 list 594 units, including 461 franchised owned restaurants and 133 company owned restaurants, serving more than three million guests each week. The brand positions itself in the QSR+ category with fresh ingredients and a value focused menu. USA Today named it the number 1 Fast Food Brand in 2024, and readers voted it Best Fast Food Restaurant in the 2024 10 Best Reader's Choice Awards. The QSR market is projected to reach $330.56 billion in 2025 and grow at a CAGR of 7.2% to $436.07 billion by 2029. The Mexican restaurant industry generated approximately $73 billion in revenue in 2023 and grew at an annual rate of 3.5% over the prior five years.

The U.S. limited service restaurant market is estimated at $97.85 billion in 2025 and is projected to reach $133.71 billion by 2030 at a CAGR of 6.45%. Globally, the market was valued at $871.02 billion in 2025 and is expected to grow at 5.7% to approximately $1.436 trillion by 2034. Convenience, speed, value, and interest in diverse and authentic food continue to support demand. Del Taco's QSR+ model pairs drive thru access with food prepared from fresh ingredients, mobile ordering, and delivery options. The related fast casual segment is expected to generate $84.5 billion between 2025 and 2029 at a CAGR of 13.7%. The category attracts franchise investment because of transaction volume and its ability to respond to demand for customization and efficient service. Del Taco has been described as a very strong regional second player behind Taco Bell in the Mexican QSR market. Urbanization and busy lifestyles continue to support demand for accessible fast food.

The initial franchise fee is $35,000 per location, with a promotional fee of $10,000. Estimated opening costs range from $1,497,200 to $3,321,000. Listed expenses include architectural and engineering services of $27,000 to $124,000, environmental assessment costs of $2,500 to $34,000, on site improvements of $186,000 to $650,000, building improvements of $490,000 to $1,200,000, and furnishings, fixtures, and equipment of $400,000 to $750,000. IT equipment, installation, computer services, and licensing cost $59,000 to $100,000. Security cameras cost $6,000 to $8,000, while technical support costs $1,700 to $3,500. Initial training is estimated at $194,000 to $253,000, with crew training at $48,000 to $68,000. Three months of working capital is budgeted at $28,000 to $65,000. Inventory costs $7,000, and licenses, fees, and deposits cost $3,000 to $6,000. A trade area survey analysis fee is listed in the source but is omitted here because its stated range includes a data gap. Candidates must show at least $500,000+ in liquid capital and $1,000,000+ in net worth. Ongoing fees are a 5% royalty on net sales and a 4% advertising fee for the national brand fund. Qualified multi unit operators can receive reduced royalty rates of 1% in year 1, 2% in year 2, 3% in year 3, 4% in year 4, and 5% thereafter. Yadav Enterprises Inc. acquired Del Taco for approximately $119 million in December 2025 after the brand had been part of Jack in the Box Inc. since March 2022. The company is led by CEO Anil Yadav.

Del Taco supports franchisees with operating procedures, supply chain standards, training, and restaurant design initiatives. Daily responsibilities include scheduling employees, following food preparation standards, and maintaining access to required ingredients and supplies. Its Fresh Flex Store Design uses updated exterior and interior concepts intended to lower net investment costs, increase real estate flexibility, and improve convenience. The Ultimate Convenience Platform includes efficient kitchen layouts, dedicated mobile app and delivery drive thru lanes, and contactless pickup stations for third party delivery. New franchisees complete 456 hours of initial training, including 48 hours in the classroom and 408 hours of hands on, on the job training. The program typically lasts two to three weeks and takes place at the corporate training center and an operating Del Taco location. Ongoing education, operational manuals, and structured onboarding support continued training and new team members. Franchisees do not receive exclusive territory. They receive an approved restaurant location, and operations outside that location require prior written approval. Del Taco encourages multi unit development through an incentive program for qualified buyers who sign a Development Agreement covering at least three restaurants. Its refranchising strategy requires buyers of existing company owned stores to develop additional locations. The preferred candidate is an experienced multi unit operator or a well capitalized first time franchisee with a strong business background.

Del Taco aims to be more than 90% franchised by 2026. Since the start of fiscal year 2021, it has signed agreements for 303 new restaurants across the U.S. and planned 150 additional restaurants by 2025. Florida is a priority market, with 44 locations planned. The southernmost planned location opened in Port St. Lucie on February 26, 2025, and additional locations in Stuart and West Palm Beach are scheduled for 2026. In fiscal year 2023, Del Taco signed 52 Florida commitments, representing more than 740% growth from the seven restaurants open there as of October 1, 2023. A 10 unit Indiana agreement targets Bloomington, Bedford, Columbus, Greenwood, Plainfield, and Avon. This represents the brand's 12th new market entry in three years. New agreements were signed in North Carolina and South Carolina, the first Virginia unit recently opened, and the first Mississippi location opened. Commitments were also signed for Texas, Montana, and Wyoming. California has 354 restaurants, or 60% of the system, while Nevada has 44 locations. Fresh Flex Store Design and the Ultimate Convenience Platform support the brand's convenience and operating strategy. Refranchising also supports multi unit expansion.

Del Taco generally seeks experienced multi unit operators or well capitalized first time franchisees with strong business backgrounds. Its incentive program applies to qualified buyers signing a Development Agreement for at least three restaurants and provides reduced royalty rates during the first years. Buyers of existing company owned restaurants must also commit to additional development. Growth markets include Florida, Indiana, North Carolina, South Carolina, Virginia, Mississippi, Texas, Montana, and Wyoming. Florida had 52 commitments in fiscal year 2023, more than 740% growth from its seven locations as of October 1, 2023. Indiana has a 10 unit agreement, and the brand has entered 12 new markets in three years. California accounts for 354 locations, or 60% of the system, and Nevada has 44. The 456 hour training program, generally completed in two to three weeks, provides the main preparation period before opening.

Del Taco operates in the $330.56 billion QSR market and the $73 billion Mexican restaurant segment. Since December 2025, Yadav Enterprises Inc., led by CEO Anil Yadav, has owned the brand. Brand President Tom Rose is overseeing a plan aimed at making more than 90% of the system franchised by 2026. Fresh Flex Store Design and the Ultimate Convenience Platform address convenience, speed, value, and restaurant efficiency. Estimated initial investment ranges from $1,497,200 to $3,321,000. PeerSense is a commercial capital advisory firm that introduces franchise buyers to SBA and conventional lenders. It does not lend or approve loans. Its Del Taco research includes SBA lending history, Loan Activity Score, location maps with Google ratings, FDD financial data, and comparison tools.