Operations
Del Taco logs 8th year franchise same-store sales growth
March 25, 2021
The nation's second-largest Mexican QSR, Del Taco, said its financial results indicate it not only survived the most odious pandemic pressures in the first half of 2020, but began to thrive during the second half of 2020, leading the brand to log its eighth consecutive year of positive franchise same-store sales growth, according to a press release.
Over the last half of 2020, Del Taco:
• Saw Q3 same-stores sales grow 6.5%.
• Saw Q4 same-store sales grow 7.5%.
• Saw 2020 franchised same-store sales grow 1.4%.
"Our brand's QSR-plus positioning continues to resonate with fans across a wide geographic footprint, and we couldn't be more pleased with our systemwide results led by strong franchise same store sales growth," Del Taco President and CEO John D. Cappasola, Jr. said in the release. "Moving forward we are focused on systemwide growth led by franchising and we are excited to work with active developers to bring the Del Taco brand to guests in new and existing territories. These strong franchised same store sales results and the launch of the new Fresh Flex prototype make it an exciting time be part of our great brand."
The brand is continuing to grow through existing and new franchise deals, including a pact with multi-unit owner Dennis Ekstrom to add more units to his portfolio, like his twelfth store which will open this month in Truth Or Consequences, New Mexico and an 11-restaurant development agreement with Peachtree Development to bring additional stores to South Carolina and Georgia.
"After 20-plus years in restaurant franchising, Del Taco has far exceeded my expectations with clever marketing, smart operations and strong development support," Ekstrom said in the release. "We're well aligned with the leadership team as they make decisions to enhance our bottom line, and I'm confident in the growth opportunities that are on the
Additionally, Del Taco is using its recently introduced Fresh Flex design to offer multiple build out options through a "Menu of Venues" strategy with building prototypes that vary in size from 1,200 to 2,400 square feet. The various prototypes allow company or franchise developers more flexibility in choosing real estate opportunities, including small footprint drive-thru only models, drive-thru endcaps, conversions and freestanding sites.
Del Taco is based in Lake Forest, California and has approximately 600 stores in 16 states.
