Del Taco is a chain of North American fast-food restaurants specializing in Mexican-style offerings, as well as
AmericanThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
foods such as burgers, fries, and shakes. Del Taco is led by President Shirlene Lopez, and is headquartered in the city of
Lake ForestLake Forest is a city in Orange County, California, United States. The population was 78,344 as of January 1, 2009. With , it is currently the most densely populated city in South Orange County....
,
CaliforniaCalifornia is the most populous state in the United States, and the third largest by area. California is the second most populous sub-national entity in the Americas, behind only São Paulo, Brazil...
. Their primary rival is
Taco BellTaco Bell is a restaurant chain based in Irvine, California. A subsidiary of Yum! Brands, Inc., it specializes in Mexican-style food and quick service....
.
1960s
Originally named
Casa Del Taco (House of the Taco), the first Del Taco restaurant was founded in
YermoYermo is a town in San Bernardino County, California. It is located 13 miles east of Barstow on Interstate 15, just south of the Calico Mountains. The town has a population of 1,500-2,000 ....
,
CaliforniaCalifornia is the most populous state in the United States, and the third largest by area. California is the second most populous sub-national entity in the Americas, behind only São Paulo, Brazil...
in 1964 by Ed Hackbarth. On the restaurant’s first official day of business, Del Taco made $169. In 1964, Hackbarth partnered with real estate broker David Jameson. Success of the first restaurant led to three in
BarstowBarstow is a city in San Bernardino County, California, United States. The population was 21,119 at the 2000 census.Barstow is a major regional transportation center. Several major highways including Interstate 15 and Interstate 40 converge in the city. It is the site of a large rail...
and a fourth restaurant in
CoronaCorona is a city in Riverside County, California, United States. As of the 2000 census, the city had a total population of 124,966. The city of Norco lies to the northeast, Chino Hills and Yorba Linda to the west, and the Cleveland National Forest to the southwest; unincorporated areas of...
(the first Del Taco with a drive-thru window). Dick Naugle, who installed the kitchen equipment in the Corona store, was impressed by the design and joined Hackbarth and Jameson in the fledgling business. In 1966, the trio founded Red-E-Food Systems, Inc. with the idea of franchising the Casa Del Taco brand. That same year, the original Del Taco sun logo was created and in 1967, Del Taco introduced their famous bean and cheese burrito with green or red sauce to their menu. Before long, the restaurants were being founded throughout Southern California.
1970s
By the 1970s, Del Taco became a franchise of change. Naugle left the company early in the decade to start his own Mexican fast food chain,
NauglesNaugles was a fast-food Mexican restaurant chain that existed from 1970 to 1988. It was founded by former Del Taco employee Dick Naugle. The first Naugles restaurant was located in Riverside, California....
. In 1973, the company dropped “Casa” from its name and Red-E-Food Systems became Del Taco, Inc. By that time, the company was enjoying a remarkable growth spurt; during one period, they were opening a new restaurant every month. However, in 1976, Hackbarth and Jameson sold Del Taco to a group of investors. The new owners sold the exclusive rights to use and develop the Del Taco name throughout the United States (excluding California;
EugeneEugene is the second largest city in the U.S. State of Oregon and the county seat of Lane County. It is located at the south end of the Willamette Valley, at the confluence of the McKenzie and Willamette rivers, about 50 miles east of the Oregon Coast...
,
OregonOregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
; and
YumaYuma is a city in and the county seat of Yuma County, Arizona, United States. The population of the city was 77,515 at the 2000 census, with a 2006 Census Bureau estimated population of 87,423....
,
ArizonaThe State of Arizona is a state located in the southwestern region of the United States. The capital and largest city is Phoenix. The second largest city is Tucson, followed in size by the four Phoenix metropolitan area cities of Mesa, Glendale, Chandler, and Scottsdale.Arizona was the 48th and...
) to the W.R. Grace & Company. Grace, primarily a chemicals company, founded a new company, Del Taco Restaurants Inc. of
DallasDallas , with a population of 1,279,910, is the third-largest city in Texas and the 8th-largest in the United States. The city is the main economic center of the 12-county Dallas–Fort Worth–Arlington metropolitan area that according to the March 2009 U.S. Census Bureau release, had a population of...
,
TexasTexas is the second-largest U.S. state in both area and population, and the largest state in the contiguous United States.The name had wide usage among native Americans, meaning "friends" or "allies"...
, and a new subsidiary, DTG Inc., to oversee the various fast food chains it was acquiring. Nonetheless, the franchise continued to expand. In 1977, there were 50 Del Taco restaurants. A year later in 1978, there were 100. As Del Taco expanded, so did their menu. They included new items such as the Bun Taco, quesadillas, and ice cream sundaes.
1980s
In 1981, the
New York Times reported that competition between Del Taco and Taco Bell was “very intense.” However, that rivalry was a mismatch, as Del Taco had roughly 350 restaurants (still located almost exclusively to California) in comparison to Taco Bell’s 1,400 plus restaurants throughout the U.S.A., at the time. Likewise, Taco Bell easily outstripped Del Taco in the perception of customers and the amount of money spent on ads (Taco Bell spent $22 million on television ads, whereas Del Taco spent $2.5 million, mainly on radio ads). In the meantime, though, Del Taco slowly expanded to roughly 200 restaurants by late 1987.
In February 1988, Del Taco’s 202 restaurants merged with the 171 Naugles’ Mexican fast food outlets owned by one-time Del Taco owner Dick Naugles. Anwar Soliman was the man behind the move and was, ironically, the mastermind behind the purchase of the rights to expand Del Taco throughout the United States back in 1977. In addition, the new Del Taco absorbed some of the Naugles menu, including the “Macho” items of current-day Del Taco. With the merger, Del Taco increased in size, and spread as far as
St. LouisSt. Louis is an independent city in the U.S. state of Missouri. With an estimated population of 354,361 in 2008, it is the principal municipality of Greater St. Louis, population 2,866,517, the largest urban area in Missouri and sixteenth largest in the United States...
,
MissouriMissouri is a state in the Midwest region of the United States bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. Missouri is the 18th most populous state with a 2008 estimated population of 5,911,605. It comprises 114 counties and one independent city....
. The 1980s also brought change in the operation, as Del Taco began to stay open all night long.
1990s
In 1990, Kevin K. Moriarty joined Del Taco as the new CEO, soon becoming the owner of the brand in conjunction with his management team. His team launched new efforts to grow the brand’s image while improving the total customer experience, setting the stage for extreme growth.
In 1992, Del Taco launched a $14 million program to redesign its restaurant exteriors, kitchens, and corporate logo. The company presented its Concept 2000 restaurant design and in August 1992 introduced its new logo. In place of the old orange and blue sunset, there was a yellow sun that rose over green mountains against a red background; these colors represented the primary ingredients of Del Taco food:
cheeseCheese is a food consisting of proteins and fat from milk, usually the milk of cows, buffalo, goats, or sheep. It is produced by coagulation of the milk protein casein. Typically, the milk is acidified and addition of the enzyme rennet causes coagulation. The solids are separated and pressed into...
,
lettuceLettuce is a temperate annual or biennial plant of the daisy family Asteraceae. It is most often grown as a leaf vegetable. In many countries, it is typically eaten cold, raw, in salads, sandwiches, hamburgers, tacos, and in many other dishes...
, and tomatoes. Later that year, Del Taco executives announced far-reaching plans to expand the chain to 500 stores by 1995 and to add another 225 by 2000. The first new markets it set its sights on were
Las VegasLas Vegas is the most populous city in the U.S. state of Nevada, the seat of Clark County, and an internationally renowned major resort city for gambling, shopping, fine dining, and entertainment. Las Vegas, which bills itself as The Entertainment Capital of the World, is famous for the number of...
,
NevadaNevada is a state located in the western region of the United States. The capital is Carson City and the largest city is Las Vegas. The state's nickname is Silver State, due to the large number of silver deposits that were discovered and mined there...
; St. Louis, Missouri; and the Northeast Corridor.
1993 featured Del Taco in a financial quagmire. They filed for protection under Chapter 11 in U.S. Bankruptcy Court, which puzzled many observers. In spite of the fact that renovations were made to keep Del Taco profitable, the company continued to pay rent on several unprofitable outlets that had already been closed. They also attempted to negotiate lease reductions on a number of other high cost sites. To make matters worse, Del Taco had been hit a $3 million lawsuit from a former supplier, which was later settled out of court.
In the five years from 1994 through 1998, Del Taco saw their company decrease and (eventually) increase in size. Though the company signed a deal to open 15 franchise stores in the
NortheastThe Northeastern United States is a region of the United States. According to the definition used by the United States Census Bureau, the Northeast region consists of nine states: the New England states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island and Connecticut; and the...
with many more in the
SoutheastThe US Southeast is the eastern portion of the Southern United States, but the Census Bureau does not provide a standard definition of a "Southeast" region of the United States, and organizations that need to subdivide the US are free to define a "Southeast" region to fit their needs...
, the chain was nowhere near the goals publicized years earlier. In 1995, Del Taco (hurt by the closing of numerous unprofitable units) had only 300 stores, instead of growing to 500 stores. However, the chain began to prosper in 1997, when their total sales had reached an estimated $250 million. By December 1998, Del Taco boasted 325 stores in twelve states and President Kevin Moriarty predicted that the company would be debt-free by 2002.
2000s
In 2000, Del Taco had 372 stores located in ten states. That same year, the average Del Taco made $927,000 in sales, one of the tops in the fast food industry, and beat out giant rival Taco Bell by almost $10,000 per store. Also that year, an important deal was signed with the Compass Group PLC that enabled Del Taco stores to open on military bases. The first to do business was the store at Patuxent River Naval Air Station at Maryland in early 2001. Other Del Tacos were planned for bases in Puerto Rico, Naples, and Italy.
In 2001,
Nation's Restaurant News reported that Del Taco had the largest average sales volume per store of any chain in the sandwich category, a remarkable achievement for a Mexican food chain, which traditionally ranked low in average sales.
In
FebruaryFebruary is the second month of the year in the Julian and Gregorian calendars. It is the shortest month and the only month with fewer than 30 days. The month has 29 days in leap years, when the year number is divisible by four...
2002, a group of former Del Taco employees, all of whom were black, brought a discrimination suit against the chain. The group claimed that while working at Del Taco in the
Los AngelesLos Angeles is the largest city in the state of California and the second largest in the United States. Often abbreviated as L.A. and nicknamed The City of Angels, Los Angeles has an estimated population of 3.8 million and spans over in Southern California...
area, they had suffered verbal abuse, had been passed over for promotions in favor of Hispanic workers, and were being fired and replaced by illegal immigrants. The case had not been settled.
However, in an effort to raise its public profile in a positive light, Del Taco launched a sports-sponsorship program with teams in eight states, including the
Mighty Ducks of AnaheimThe Anaheim Ducks are a professional ice hockey team based in Anaheim, California, USA. They are members of the Pacific Division of the Western Conference of the National Hockey League...
and
Phoenix CoyotesThe Phoenix Coyotes are a professional ice hockey team currently based in Glendale, Arizona, just outside of Phoenix. They are members of the Pacific Division of the Western Conference of the National Hockey League...
hockey teams, basketball’s
Los Angeles ClippersThe Los Angeles Clippers are a professional basketball team based in Los Angeles, California. They play in the National Basketball Association and are members of the NBA Western Conference's Pacific Division. The club's home games are played at the Staples Center, which they share with the Los...
and
Utah JazzThe Utah Jazz are a professional basketball team based in Salt Lake City, Utah. They are currently members of the Northwest Division of the Western Conference in the National Basketball Association...
, the University of Nevada at Las Vegas’s football and basketball teams, and several minor league hockey and baseball teams. The deal placed the Del Taco logo on signs, drink cups, and special promotional items at the stadiums of the partner teams. It paid off as, in 2003, Del Taco announced that their restaurants topped $1 million per store in average annual sales, which was more remarkable considering that other stores, notably McDonald’s and Carl’s Jr., featured a decrease in annual sales.
In 2006, a private
NashvilleNashville is the capital of the U.S. state of Tennessee and the county seat of Davidson County. It is the second most populous city in the state after Memphis. It is located on the Cumberland River in Davidson County, in the north-central part of the state...
,
TennesseeTennessee is a state located in the Southeastern United States. According to the 2008 census, it has a population of 6,214,888, an increase of nearly 9.5% since 2000. Tennessee is the 14th fastest growing state in the US and is ranked 17th by population. It is ranked 36th by total land area. In...
based holding named Sagittarius Brands, LLC, which is also the parent company of Captain D’s Seafood, purchased Del Taco.
In
JanuaryJanuary is the first month of the year in the Julian and Gregorian calendars, and one of seven Gregorian months with the length of 31 days. The first day of the month is known as New Year's Day...
2008, Del Taco announced the opening of its 500th restaurant in
BurbankBurbank is a city in Los Angeles County, California, United States. The estimated population in 2007 was 107,921.Burbank is located in two distinct areas, with its downtown, civic center and key neighborhoods nestled on the slopes and foothills that rise to the Verdugo Mountains, and other areas...
, California.
On Monday, April 27, 2009, a new Del Taco opened in
Oviedo, FloridaOviedo is a city in Seminole County, Florida, United States. The population was 26,316 at the 2000 census. As of 2006, the population recorded by the U.S...
, marking the first time since the
1980sThe 1980s was the decade that ran from January 1, 1980, to December 31, 1989.The time period saw social, economic and general change as wealth and production migrated to newly industrializing economies...
that Del Taco was available in the
OrlandoOrlando is a major city in the central region of the U.S. state of Florida. It is the county seat of Orange County and the center of the Greater Orlando metropolitan region...
area.
On
SaturdaySaturday is the day of the week between Friday and Sunday. Saturday is considered either the sixth or seventh day of the week....
, June 6, 2009 Del Taco
celebrated the grand opening of its first and only store in South Carolina, located at 1800
Boiling Springs Road in Boiling Springs. The stores manager trained at a Del Taco location in the city of
San BernardinoSan Bernardino, California is a large city in the Inland Empire Metropolitan Area of Southern California.San Bernardino may also refer to:*San Bernardino of Siena , Italian priest, Franciscan missionary, and Catholic saint...
in southern
CaliforniaCalifornia is the most populous state in the United States, and the third largest by area. California is the second most populous sub-national entity in the Americas, behind only São Paulo, Brazil...
which means that this new Del Taco location has the same high quality and high standards that Del Taco regular customers are accustomed to and new customer will come to enjoy.
Demographics
The chain is concentrated in 18 states in the U.S.A.. Though nearly half of the states that contain a Del Taco are east of Texas (Illinois, Indiana, Michigan, Missouri, Ohio, Tennessee, and Wisconsin), and recently three locations in South Carolina and one in Florida. The vast majority of the restaurants are located on the West Coast (Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, and Washington) with Las Vegas, Nevada having the most Del Tacos of any one city and California having the most Del Tacos of any one state by far.
Products
Unlike other fast food restaurants, Del Taco specializes in serving two different types of food: Mexican and American. Their standard menu includes Hard Shell Tacos, Soft Tacos, Burritos, Quesadillas, Nachos, Jalapeno Rings, Deluxe Taco Salad, Crinkle Cut French Fries, Chili Cheddar Fries, Double Del Cheeseburger, Bacon Double Del Cheeseburger, Triple Del Cheeseburger, Shakes, and at least four types of Breakfast Burritos.
Marketing
The first mascot of Del Taco was a character of the same name used from 1999 through 2000. While popular, Del Taco (the company) was hit by a lawsuit from Zorro Productions, Inc. and Tristar Pictures, Inc., who claimed that the "Del Taco" character – masked and costumed in black – infringed on their rights to the trademark Zorro figure. Del Taco settled the suit in January 2000, agreeing to make changes to the Del Taco character, but soon discontinued the ad campaign altogether.
In its place, from 2000 through early 2007, Del Taco used
Gregg BinkleyGregg Binkley is an American television actor. Binkley grew up in Topeka, Kansas, and graduated from Washburn Rural High School. He is best known for his roles as Kenny James on the NBC sitcom My Name Is Earl and as Dan, the Del Taco spokesperson...
to play
Dan in their commercials. Dan, a clumsy marketing spokesman for Del Taco, was famous for his antics during their commercials. Among other things, Dan destroyed cars, broke hockey-rink glass, and mistakenly held a sales event at a nude beach, all while promoting a specific item for Del Taco.
From August 2007 through July 2008, Del Taco employed
Chris WyldeChris Wylde is the stage name of an American actor who was born on August 22, 1976 in Hackettstown, New Jersey as Christopher Scott Noll.His parents are both United Methodist ministers. While he was a young boy he attended the St. Thomas Choir School in Manhattan. He sang with the St...
to play
"The Beast" in their commercials. "The Beast", a personification of hunger, typically stood next to a customer and persuaded him to order a particular item (or particular items) so that they could "Feed the Beast" (which was Del Taco's slogan at the time). "The Beast" made his debut in August 2007 promoting Del Taco's improved Chicken Soft Taco. In addition, he endorsed the Crispy Fish Taco in February 2008, the improved Chicken Quesadilla (with 50% more chicken) in April 2008, and Del's Deal (two half-pound bean and cheese burritos, a regular crunchy taco, and a small drink for $2.99) in June 2008.
Currently, Del Taco uses a variety of commercials to promote their new slogan, "Go Bold or Go Home." The first commercial featured a team of miniature "Mole Men" to promote the Spicy Chicken Mole Soft Taco, which aired in August 2008. Future ads included Del Taco's promotion of their improved regular taco in September, the Classic Combo Deal in November, three separate meal deals for under three dollars (including the aforementioned deal) in January 2009, the crispy shrimp taco in February, the chicken soft taco in April, and the chicken fajita burrito in June.