Del Taco Brand Refresh, Positioning, and Hospitality Helping Build Even Stronger Sales

It’s a refreshing time to be a part of Del Taco. The value-oriented QSR-plus brand is coming off 5 years of positive company sales growth*. If that’s not enough to grab your attention, the brand just launched a brand refresh initiative that is generating buzz among franchisees and customers alike. It’s all doing wonders to further differentiate and separate the California-based Mexican quick serve brand in a crowded field.

Del Taco’s brand refresh adds a new tagline – Fresh Mexican Grill - to the iconic name, a new advertising campaign reinforces the brand’s fresh ingredient preparation, including chopping, grilling, slicing, and shredding, there’s updated packaging, new hospitality initiatives, and redesigned menu boards, among other fresh changes.

Its new advertising campaign, “Celebrating the Hardest Working Hands in Fast Food,” is one more way the company communicates its commitment to providing guests with fresh, quality food prepared by hand every day.

Officials say the brand is employing a combination of new back-of-house and guest-facing initiatives to further differentiate and separate itself in the crowded QSR and fast casual landscape.

“We’re leaning into what enables this brand to continue to differentiate itself from Taco Bell and Chipotle, with industry-leading value and traditional food prep, where our team members chop, dice, shred and grill throughout the day,” said M. Barry Westrum, Del Taco’s Chief Marketing Officer.

One way Del Taco demonstrates its commitment to delivering high quality, fresh and made-to-order items is by expanding its Buck and Under Menu with the introduction of its new Chicken Quesadilla Snacker. The new value-priced Chicken Quesadilla Snacker combines freshly grilled chicken and hand-grated cheddar cheese, cooked to perfection in a flour tortilla and great for people on-the-go.

The brand’s refresh initiatives, positioning, and hospitality are helping boost results at the cash register. Del Taco’s company restaurant’s average unit volume (AUV) grew from $1.2M in 2013 to $1.5M in 2017

“Since fiscal 2013, our company AUV’s have grown by more than 24%, helping us achieve enhanced unit economics that are driving company and franchise growth opportunities,” said John D. Cappasola, Jr., president and chief executive officer of Del Taco.

With a high profile brand refresh, AUV growth, and 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 offers a great investment opportunity for franchisees.

To find out more about franchising with Del Taco, visit www.deltacofranchise.com.

*Figures are for freestanding franchisor-owned restaurants. In FY 2013, 147 or 51% had average sales ≥$1,207,784; in FY 2014, 144 or 51% had average sales ≥ $1,278,853; in FY 2015 143 or 51% had average sales ≥ $1,376,622; in FY 2016, 137 or 48% had average sales ≥ $1,459,541; and in FY 2017, 139 or 48% had average sales ≥ $1,497,155.

See Item 19 of our May 2018 Franchise Disclosure Document for more information.  There is no assurance that you will do as well, a new franchisee’s results may differ from the represented results.  

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