Del Taco Fires Up Florida Development with New Multi-Unit Franchise Deal and New Restaurant Growth

Rhea-AI Summary

Del Taco (NASDAQ: TACO) continues its expansion in Florida, announcing a multi-unit development deal with FreshMex FL LLC, a seasoned operator with 200-plus locations. This partnership aims to increase Del Taco's footprint, particularly in the Tampa metro area. Notably, the company reported a 14.0% increase in systemwide sales at franchise restaurants compared to 2020. As part of its growth strategy, Del Taco is implementing the Fresh Flex design, allowing flexibility in site selection and modernizing its service approach.

Positive

• 14.0% increase in Q1 systemwide sales at franchise locations compared to 2020.
• Multi-unit development agreement with experienced franchisee FreshMex FL LLC.
• Expansion plans in the lucrative Tampa metro market.

Negative

• None.

Leading QSR-Plus Concept Continues Penetration Across Florida and the Southeast

LAKE FOREST, Calif., May 13, 2021 (GLOBE NEWSWIRE) -- Del Taco (NASDAQ: TACO), the nation’s second largest Mexican quick-service restaurant chain*, announced continued growth plans in Florida as new multi-unit franchisees drive development across the region.

In support of national growth efforts, Del Taco has signed a multi-unit development deal with FreshMex FL LLC—a well-established quick service operator equipped with more than 20 years of restaurant experience and 200-plus operating units across multiple brands. Broadening their portfolio with Del Taco, they are focused on growing the brand primarily in the Tampa metro market on Florida’s west coast.

The news comes as Del Taco announced impressive first-quarter systemwide sales growth of 14.0% at franchise restaurants versus 2020. Although the company is strongly-rooted on the west coast, Del Taco’s sales trends continue to reiterate the strength of non-California restaurants, which are primarily franchise operated.**

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

In addition to the new FreshMex FL LLC signing, over on the east coast of Florida multi-unit operator, Navdeep Bassi is expected to open his first Del Taco restaurant in Melbourne on May 19^th. This will be the first restaurant as part of Bassi’s plans for several new units across the Space Coast region.

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. Reconceptualizing the brand’s restaurants inside and out, the distinct design includes tech-savvy, innovative options like third-party pick-up stations and double drive-thru lanes with a dedicated lane for mobile orders and delivery pick-ups.

Rounding out Florida development news, the brand’s initial Fresh Flex prototype restaurant, the first of several planned Orlando openings, breaks ground this month and will open this fall. Ranked in the top five U.S. markets*** for development opportunities, 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, creating perfect alignment with franchisees on strategies to drive both top and bottom line results. With locations in 16 states today, the company still has tremendous white space 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.

*By number of units.
** See 2021 Franchise Disclosure Document
***See CBRE’s U.S. Development Opportunity Index

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.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c129fd35-822b-46b3-83cc-51dcc1a60b97 

FAQ

What are Del Taco's recent sales growth figures for Q1 2021?

Del Taco announced a 14.0% increase in systemwide sales at franchise restaurants in Q1 2021 compared to 2020.

Which franchisee is partnering with Del Taco for expansion in Florida?

Del Taco has signed a multi-unit development deal with FreshMex FL LLC to grow its brand in Florida.

What is the Fresh Flex design being implemented by Del Taco?

The Fresh Flex design allows for flexible real estate opportunities, including small footprint drive-thru models and tech-savvy options.

What market is Del Taco targeting for growth in Florida?

Del Taco is primarily focusing on the Tampa metro market for its expansion efforts.

When will Del Taco's first restaurant by franchisee Navdeep Bassi open?

Navdeep Bassi is set to open his first Del Taco restaurant in Melbourne, Florida, on May 19.