Del Taco

Del Taco

Information based on 2024 FDD

Food & Beverage · Fast Food

Investment min
$1M
Total: $1M–$3M
Avg gross revenue
$2M
Unit-level, 2024
Franchise fee
$35K
Per current disclosure
Royalty
5%
of gross revenue
Locations
421
Franchising since 1967

Description

What is Del Taco?

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.
  • 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

Location Analysis

Where Del Taco wins

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 locations
592
Franchise units
421
Corporate locations
171
Avg. sq. footage
N/A

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Financial Analysis

The numbers behind Del Taco

Avg gross revenue$1,630,406
Investment range$1,312,200 – $3,085,000
Investment midpoint$2,198,600
Brand fund4%
Royalty5%
Franchise fee$35,000
Min. net worth
Min. liquid capital
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.
Did you know? 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?

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$1M–$3M
Most common
$1,312,200
Minimum
$2,198,600
Midpoint
$3,085,000
Maximum

Per FDD Item 7, total initial investment ranges from $1,312,200 to $3,085,000. The midpoint $2,198,600 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

FDD Item 19

Average gross sales

$2M$2M$1M$800K$400KN/A
$2M
$2M
$2M
2022
2023
2024
Avg
$2M
YOY change (2023 -> 2024)
+1%

According to Item 19 of the Franchise Disclosure Document, Del Taco has an average gross revenue of $2M. (Note: This information is based on the latest FDD in our records. Please review the Franchise Disclosure Document (FDD) and confirm this information directly with the brand. We make no claims of accuracy for the information presented.)

Growth over time

Franchise footprint

0% YoY
8006404803201600
2018
2019
2020
2021
2022
2023
2024
592 units open as of 2024 FDD+1 in last 12 mo

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Del Taco's 2024 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2024 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a Del Taco franchise typically ranges between $1,312,200.00 and $3,085,000.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

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.

Del Taco
Del Taco
$2M avg revenue · 421+ US franchises

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