
Del Taco
Food & Beverage · Quick-Service Restaurants
- Active units
- 461
- Avg unit volume
- $1.6M
- Royalty
- 5.0%
Franchised, year-end 2024
of weekly Net Sales
About Del Taco
Del Taco is an American fast-food restaurant chain that specializes in Mexican-style cuisine. It was founded in Yermo, California in 1964 by Ed Hackbarth and David Jameson. The restaurant quickly gained popularity for its unique combination of American and Mexican flavors and was known for offering freshly prepared food at affordable prices. The company's headquarters are currently located in Lake Forest, California. Del Taco is known for its diverse menu, which includes tacos, burritos, quesadillas, nachos, and hamburgers. They also offer a variety of sides, desserts, and beverages, including their famous Crinkle Cut Fries and Del Taco's secret sauce. Del Taco operates primarily in the United States, with over 600 restaurants across 15 states. The company has also ventured into global markets through franchising. In 2015, Del Taco partnered with franchisees to open its first restaurant in the Middle East, located in Dubai. This expansion marked the company's first step towards international growth. In terms of market position, Del Taco is a prominent player in the fast-food industry, particularly in the Mexican fast-food segment. It competes with other major chains such as Taco Bell and Chipotle. Del Taco has managed to maintain its popularity and expand its customer base through its quality food, efficient service, and value-oriented pricing. Over the years, Del Taco has introduced several innovative products and menu items to keep up with evolving consumer preferences. They have introduced breakfast options, such as burritos and quesadillas, which have been well-received by customers. The company has also embraced a strategy of offering healthier alternatives, including fresh ingredients and vegetarian options. As of the latest update, Del Taco continues to grow and expand its presence across the United States. They have been actively opening new restaurants and exploring new markets. The company has also been focusing on digital marketing and delivery services to enhance customer convenience and adapt to changing consumer trends. In conclusion, Del Taco is a well-established fast-food restaurant chain known for its Mexican-style cuisine. With a strong market presence in the United States, the company is expanding both domestically and internationally. By offering a diverse menu and responding to customer preferences, Del Taco remains a popular choice for Mexican fast-food lovers.
Key terms
- Franchise fee
$35k
- Brand fund
4.0% of Net Sales
- Footprint
1,152 – 2,304 sq ft
- Development Agreement (minimum 2 restaurants)
$45k
- Deposit on Franchise Fee for each subsequent restaurant
$10k
- Veteran discount
25.0% off franchise fee — Reduce the Initial Franchise Fee for a qualifying veteran’s first new Restaurant by 25% ($8,750); Initial Franchise Fee becomes $26,250.
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2025 filing).
Growth
- Total locations461
Franchised units open at year-end
- New openings58
Gross new units opened during the calendar year
- 1-year unit growth rate9.5%
Net unit growth versus prior year
- 3-year unit CAGR23.8%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio6.4×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)$1.6M
Average annual sales for freestanding franchised restaurants open at least 12 months; most recent fiscal year.
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$2.4M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open8 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio0.7×
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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