Del Taco Fuels Southeast Growth With Multi-Unit Florida Panhandle Deal

Rhea-AI Summary

Del Taco Restaurants (NASDAQ: TACO) has signed a franchise agreement with Consolidated Taco Holdings to open 12 new locations in Florida's Panhandle. The partnership aims to accelerate Del Taco's growth in the region, benefiting from CTH's proven success in the restaurant industry. CEO Ed Stutz emphasized the strategic alignment and strong unit-level economics of Del Taco, while Jeff Little, Senior VP of Development, highlighted the commitment to operational excellence. Del Taco's unique QSR+ positioning offers significant growth potential for multi-unit operators.

Positive

• Franchise agreement to open 12 new locations in Florida's Panhandle.
• Partnership with an established franchise group with a proven track record.
• Strong unit-level economics and strategic alignment with the franchise partner.
• Continued expansion of Del Taco's brand presence in the Southeast.

Negative

• None.

Leading Mexican Chain Signs 12 Unit Franchise Deal with Established Multi-Unit Franchise Group

LAKE FOREST, Calif., July 20, 2021 (GLOBE NEWSWIRE) -- Del Taco Restaurants, Inc. (NASDAQ: TACO), the nation’s second largest Mexican quick service restaurant*, announced its new franchise partnership with Consolidated Taco Holdings (CTH) – a sister company to Consolidated Burger Holdings (CBH). Continuing its expansion throughout Florida, where Del Taco has recently seen an influx of growth and development, the deal is expected to bring 12 new Del Taco locations to Florida’s Panhandle.

“We’ve been in the burger franchise business for quite some time and are more than excited to partner with Del Taco to add a Mexican restaurant to our portfolio,” said Ed Stutz, CEO of CTH. “When choosing new brands to add to our portfolio, we go through a rigorous exercise to ensure we’re very aligned with their vision. We believe Del Taco checks all the boxes to include a strong leadership team, a compelling brand identity, a highly distinctive value proposition, and strong unit level economics. We are really looking forward to partnering with the Del Taco team on the nationwide expansion by bringing the concept to Panhandle of Florida and beyond.”

Stutz, an Army veteran, has been in the restaurant industry since 2002, previously serving as North Division Vice President for Arby’s Restaurant Group where he oversaw nearly 800 locations in the U.S. and Canada. In his role as CEO of CTH and CBH, Stutz has become well-versed in strategic business planning, team alignment, change management and new unit and revenue growth. CBH is an emerging restaurant conglomerate that has proven its success in owning and operating more than 60 Burger King locations throughout Georgia and Florida.

“This new multi-unit plan to expand throughout Florida propels us forward in realizing our vision for significant brand growth led by franchisees in the Southeast region of the U.S.,” said Jeff Little, Senior Vice President of Development. “Our goal is to continue to partner with successful franchise organizations like CTH who are aligned with Del Taco’s commitment to bringing the brand to life by combining great real estate with operational excellence. The CTH team has a phenomenal track record of success in this region and is an ideal partner to continue growing Del Taco’s presence and reputation throughout Florida.”

Del Taco’s unique QSR+ positioning within the Mexican quick-service segment presents great growth potential for experienced multi-unit operators and private equity firms looking to diversify portfolios. With development areas open across the U.S., Del Taco is continuing to seek multi-unit operators who are looking for the opportunity to claim a territory and grow alongside the company.

To learn more about Del Taco’s franchise opportunity, visit www.deltacofranchise.com.

^{*By number of units.}

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, freshly made guacamole, 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.

Media Contact
Tara Woodall
Allison + Partners
deltaco@allisonpr.com
619-342-9386

FAQ

What is the significance of the new franchise deal for TACO?

The franchise deal is significant as it will lead to 12 new Del Taco locations in Florida, enhancing brand presence and market penetration.

Which franchise group is partnering with Del Taco?

Del Taco is partnering with Consolidated Taco Holdings to expand its franchise operations.

When was the franchise agreement signed?

The franchise agreement was signed on July 20, 2021.

How does the franchise deal affect Del Taco's growth?

The deal is expected to propel Del Taco's growth in Florida, aligning with its vision for national expansion.

What is Del Taco's market position?

Del Taco is the nation’s second largest Mexican quick service restaurant chain by number of units.