Del Taco vs Taco Bell: Which Franchise Is Best?

Are you searching for the differences between franchising with Del Taco vs Taco Bell?

At Del Taco, we understand you have a lot of choices to make when it comes to finding the best franchise opportunity for you.

In this article, we’ll take an in-depth look at five key differences between Del Taco and Taco Bell when it comes to franchising.

1) Available Markets

Finding an available market to build your locations is one of the most important steps in your franchising journey.

Let’s look at the number of current locations in the United States for both brands:

• Taco Bell: +7,500 Locations
• Del Taco: +590 Locations

You’ll notice Taco Bell has nearly 7,000 more restaurants in the U.S. than Del Taco – leaving plenty of whitespace for Del Taco franchise growth.

This presents an opportunity to build Del Taco locations in some of the most exciting markets in the country. Plus, give you a better chance at finding availability in your preferred location.

When you look at our map of available markets, you’ll see most of the cities and states outside of Idaho, Utah, and Nevada are open for new restaurants.

At Taco Bell, it may be harder to find an available territory simply because there are so many existing Taco Bells across the United States.

2) Investment Requirements

Before you begin the process of becoming a franchisee, you must meet certain investment requirements.

These requirements typically involve a minimum for liquid cash available along with a franchisee fee.

Taco Bell Investment Requirements:

• Minimum Liquidity: $750,000
• Franchise Fee: $45,000 per Location

Del Taco Investment Requirements:

• Minimum Liquidity: $500,000
• Franchise Fee: $35,000 per Location

The liquid assets required to own a Taco Bell are much higher than Del Taco. Plus, they have a slightly higher initial franchise fee per location.

Keep in mind, you’ll also be responsible for paying ongoing royalty fees as a franchisee for both brands.

Del Taco charges an ongoing 5% royalty of net sales and 4% ongoing marketing royalty.

Taco Bell charges an ongoing 5.5% royalty of gross sales and 4.25% ongoing marketing fee.

3) Business Partners

If you’re unable to meet the financial requirements mentioned above, there are many potential sources of liquidity that may be overlooked. For example:

• Business Partners
• Stocks & Bonds
• 401k Rollovers

At Del Taco, we allow our franchisees to have business partners to help them meet investment requirements.

Currently, the Taco Bell franchising website doesn’t mention if they give franchisees the opportunity to operate with business partners.

4) Real Estate Ownership

Another factor to consider when starting a franchise is whether the brand allows you to own the real estate associated with their restaurant.

At Del Taco, our franchisees can purchase or lease the property where their restaurants are located. We even have an entire real estate and leasing team to help you find a location and assist with lease negotiations.

Taco Bell currently does not state if they allow franchisees to own the real estate their location is associated with on their website.

5) Fresh Ingredients

Since 1964, Del Taco has been serving freshly prepared, craveable food at an unbeatable value for our customers.

Our menu features tacos and burritos as well as burgers and fries. Plus, we span a full complement of dayparts from breakfast to dinner to late night and everything in-between.

We believe fresh tastes better, and it shows when you see ingredients like:

• House-Grated Cheddar Cheese
• Slow-Cooked Beans from Scratch
• House-Made Pico de Gallo
• Freshly Grilled, Marinated Chicken
• House-Made Guacamole
• Freshly Grilled, Marinated Carne Asada

Taco bell has made significant improvements to their food to offer affordable, craveable, innovative choices for their customers. Learn more about their ingredients here.

Check Out These Additional Resources

We hope this article gave you a better understanding of the advantages and disadvantages between Del Taco and Taco Bell.

At Del Taco, we work with our franchisees every step of the way to get their restaurants up and running.

Here are some additional online resources you may like to check out:

• 5 Reasons to Buy a Taco Franchise
• Does Del Taco Offer Non-Traditional Franchising?
• 15 Best Taco Franchises to Own from This Year

If you have any questions, please contact our franchise sales and support team.