LAKE FOREST, Calif.,
April 1, 2021 /PRNewswire/
-- Del Taco, the nation's second largest Mexican quick service
restaurant chain, is carrying tremendous momentum into the first
quarter of 2021. Despite pandemic-induced pressures, the brand was
resilient during the initial COVID-19 slowdown and began to thrive
during the second half of 2020. This led to their eighth
consecutive year of positive franchise same store sales growth
which provides a great trajectory for the brand as it continues
through 2021. Underscoring their tremendous performance, franchised
locations have enjoyed topline sales strength that far exceeds
industry trends.*
In Del Taco's recent financial reports, the following notable
highlights were included:**
- In Q3, franchised same store sales increased 6.5%;
- In Q4, franchised same store sales increased 7.5%;
- For fiscal year 2020, franchised same store sales increased
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," said John D.
Cappasola, Jr., President and Chief Executive Officer of Del
Taco. "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."
Existing Del Taco franchisees are riding this wave into 2021 as
multi-unit developers continue to sign franchise agreements in both
established and untapped markets. Recognizing the opportunity to
meet accelerating demand, seasoned multi-unit owner Dennis Ekstrom recently signed a new development
agreement to add more units to his existing portfolio. Ekstrom
opened his 12th restaurant, in Truth Or Consequences, New Mexico, which was
one of 3 existing franchisee openings that occurred in March.
"After 20-plus years in restaurant franchising, Del Taco has far
exceeded my expectations with clever marketing, smart operations
and strong development support," said Ekstrom. "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 horizon."
Beyond existing franchisee growth, Del Taco continues to make
progress partnering with experienced operators to help grow the
brand through new development agreements in both established and
emerging markets. Most recently, the brand signed an 11-restaurant
development agreement with multi-brand franchise operator Peachtree
Development. Bringing strong development and restaurant experience,
the group is focused on growing the brand in South Carolina and Georgia.
The focus on franchisee growth and recruitment is helped by the
recent unveiling of the bold new Fresh Flex design that
reconceptualizes Del Taco restaurants inside and out.
Striking exteriors and distinctive interiors evoke a fresh, fun and
contemporary feel, all while improving real estate access for
franchisees, and providing ultimate convenience for guests and
operators.
With tech-savvy, innovative additions like third-party pick-up
stations and double drive-thru lanes with a dedicated lane for
mobile orders and delivery pickups, the future-focused model
optimizes operational efficiencies and caters to modern consumers'
expectations: accessibility, speed of service, and brand
transparency.
Del Taco is leveraging the Fresh Flex design to offer multiple
buildout options, maximizing growth opportunities 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. Likewise,
the design will also play an integral role in the brand's
remodeling program to contemporize the fleet and help drive
returns.
The brand continues to operate nearly half of the system's
restaurants, creating perfect alignment with franchisees on
strategies to drive top and bottom line results. Across 16 states
today, Del Taco has tremendous white space capacity to grow and is
looking to develop with experienced individuals and operating teams
across the nation.
To learn more and to inquire about available franchise
opportunities, visit www.deltacofranchise.com.
About Del Taco Restaurants, Inc.
Del Taco (NASDAQ: TACO) offers a unique variety of both Mexican
and American favorites such as burritos and fries, prepared fresh
in every restaurant's working kitchen with the value and
convenience of a drive-thru. Del Taco's menu items taste better
because they are made with quality ingredients like fresh grilled
chicken and carne asada steak, sliced avocado, freshly grated
cheddar cheese, slow-cooked beans made from scratch, and creamy
Queso Blanco.
Founded in 1964, today Del Taco serves more than three million
guests each week at its approximately 600 restaurants across 16
states. Del Taco's commitment to providing guests with the best
quality and value for their money originates from cooking,
chopping, shredding and grilling menu items from scratch. For more
information, visit www.deltaco.com.
*Black Box Intelligence
**Please refer to
Del Taco 2020 Amended FDD
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SOURCE Del Taco