Franchising

Del Taco closes 2 multi-unit deals for Florida

Del Taco's Fresh Flex store model is key to Florida expansion. (Provided)

May 14, 2021

Del Taco is expanding in the Sunshine State thanks to several multi-unit deals recently, according to a news release. The company inked a deal with multi brand QSR company, FreshMex FL LLC, to grow Del Taco's presence in the Tampa metro market on Florida's west coast. It also closed a deal with multi-unit operator, Navdeep Bassi, to open the franchisee's first Del Taco in Melbourne, on Florida's East Coast May 19 as part of several units Bassi plans for the Space Coast area of the state.

The news comes on the heels of Del Taco's Q1 earnings report that showed systemwide sales growth of 14% at franchise restaurants over the same period last year. Although the company is strongly-rooted on the nation's West Coast, the company said sales data shows the brand's popularity outside of California where stores are mostly run by franchisees.

"Strong franchisee performance, especially outside of California, is helping to attract the highest caliber, growth-oriented operating teams to join our momentum," Del Taco President and CEO John D. Cappasola, Jr., said in the release. "We're thrilled to welcome experienced groups like FreshMex FL LCC that will further contribute to our significant franchise growth opportunity."

As the brand's Florida pipeline builds, franchise growth and recruitment efforts are fueled by Del Taco's new Fresh Flex design that allows company and franchise developers more flexibility in choosing real estate opportunities, including small footprint drive-thru only models, drive-thru endcaps, conversions and freestanding sites. The design includes options to accommodate restaurant tech, like third-party pick-up stations and double drive-thru lanes with a dedicated lane for mobile orders and delivery pick-ups.

In fact, the brand's initial Fresh Flex prototype restaurant breaks ground in Orlando this month and will open this fall. Ranked in the top five U.S. markets for development opportunities, Del Taco said Orlando is a new company seed market to support statewide growth and further efforts to build brand presence in the Southeast.

Del Taco continues to operate nearly half of the system's restaurants, with current locations in 16 states, including approximately 600 restaurants total. The brand is based in the Los Angeles suburb of Lake Forest, California.