Taco Bell recently unveiled its full 2024 menu, generating excitement like a new iPhone launch. This move seemed to solidify its confidence in the fast food market. However, a recent report from Restaurant Dive reveals a potential challenger. Del Taco, previously seen as the underdog, is now making bold moves to expand across the country.
This ambitious plan puts Del Taco in direct competition with Taco Bell, aiming to become a leading force in the fast food taco industry.
Taco Bell and Del Taco: The Battle for Tex-Mex Supremacy
Del Taco, a fast-food chain known for its Tex-Mex menu similar to Taco Bell's offerings, currently operates in just 16 states with nearly 600 locations across the U.S. This starkly contrasts Taco Bell's vast network of 8,000 outlets nationwide. Del Taco signed 138 new franchise deals in 2023 alone in a bold move to bridge this gap.
Del Taco is aggressively expanding beyond just adding new outlets. The chain is set to open 52 franchises in Florida and establish a presence in Texas, Montana, and Wyoming.
Further expansion plans include California, Nevada, Georgia, South Carolina, and the upcoming North Carolina and Virginia debuts. Van Ingram, VP of Franchise Development, highlights Florida's rapid growth as pivotal for Del Taco's success, aiming to rival Taco Bell.
Both chains offer similar Tex-Mex menus featuring burritos, tacos, nachos, and quesadillas. Del Taco, however, often incorporates more traditional Mexican items like tamales and guacamole. Some Del Taco products, such as the Crunchtada, mirror Taco Bell's offerings, indicating fierce competition in the fast-food Tex-Mex sector.
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Del Taco's Impressive Expansion in Florida and Beyond
Del Taco is making significant strides in Florida, showcasing a remarkable growth strategy for the upcoming year. In fiscal 2023, the company secured 52 new commitments in the state, signaling a massive 740% increase in its presence there once these outlets open.
As of October 1, 2023, Florida had only seven Del Taco restaurants, but this number is set to skyrocket.
Van Ingram, the Vice President of Franchise Development at Del Taco, noted the exceptional performance of the new Florida stores. He says these locations are "killing it," demonstrating robust business. This success has attracted experienced operators eager to expand the brand in Florida.
With its 600 units spread across 16 states, Del Taco isn't just focusing on Florida. The Mexican food chain is also eyeing growth in other Southeastern areas. Last year marked the opening of Del Taco's first outlet in Mississippi, and plans are in place for expansion into Texas.
Additionally, Del Taco is branching out to the Northwest, with commitments signed for new locations in Montana and Wyoming, marking a significant step in the company's nationwide growth strategy.
In 1964, founders Ed Hackbarth and David Jameson launched the first Del Taco in Yermo, California. Their initial menu was simple yet appealing, offering items like 19¢ tacos, tostadas, fries, and cheeseburgers for just 24¢.
On its opening day, Del Taco experienced a promising start, earning $169 in sales, roughly the equivalent of selling 900 tacos. This marked the beginning of what would become a major player in the fast-food industry.
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