Taco Franchise vs Coffee Franchise: Everything You Need to Know

Are you interested in learning the differences between owning a taco franchise vs coffee franchise? You’re in the right place!

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 a look at three key differences between a taco restaurant and coffee store when it comes to franchising.

What is a Taco Franchise?

A taco franchise is typically defined as a restaurant that primarily focuses their menu on the Mexican segment with a focus on tacos.

Some of the most popular taco franchises in the United States are:

• Del Taco
• Taco Bell
• Moe’s
• Taco John’s
• Qdoba
• TacoTime
• Rusty Taco
• Taco Bueno

These brands have a long history of serving tacos along with other Mexican favorites like burritos, nachos, quesadillas, and more.

Taco franchises are some of the most popular restaurants in the United States and have been expanding into international markets.

What is a Coffee Franchise?

On the other hand, a coffee franchise is commonly known as a shop that primarily serves coffee and other beverages.

Here are a few examples of well-known coffee franchises from around the world:

• Starbucks
• Dunkin’
• Peet’s Coffee & Tea
• Caribou Coffee
• Gloria Jean’s Coffees
• Scooter’s Coffee
• Aroma Joe’s Coffee
• Maui Wowi Hawaiian Coffees & Smoothies
• Cafe2U
• Biggby Coffee
• Dunn Brothers Coffee
• Coffee Beanery
• Café Barbera
• The Human Bean
• PJ’s Coffee
• Tim Hortons

These brands are well known for serving a wide range of different coffees. Plus, they typically offer pastries, teas, and smoothies too.

If you need a caffeine fix, you shouldn’t have trouble finding a Starbucks near you. They have more than 38,000 locations worldwide!

Menu Variety

Most coffee franchises have a fairly complex menu with drinks that are often customized for each individual customer.

Coffee orders are typically taken in the drive-thru, at the counter, or on an app where customers can earn loyalty points.

Some coffeeshops also serve breakfast food like pastries, bagels, and other sweet treats to accompany the guest’s coffee of choice.

Taco franchises tend to carry burritos, nachos, quesadillas and other Mexican favorites alongside tacos with your choice of hard or soft shells.

At Del Taco, 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.

Did you know we also sell coffee too? We serve iced or regular Café del Olla Coffee made with 100% single origin sustainable Arabica beans.

This medium roast combines the hints of brown sugar and cinnamon to create a unique experience and wake up your taste buds any time of day.

Real Estate & Site Requirements

Most taco and coffee franchises offer flexible prototypes that can fit in a wide variety of traditional and non-traditional venues like c-stores, airports, and college campuses.

However, when it comes to Del Taco, we require all of our restaurants to have a drive-thru lane. This is why we prefer free-standing locations or end caps.

While most coffee franchises have a drive-thru lane, the requirement for each location to have one will vary depending on the brand you’re interested in.

Financial Requirements

The total initial investment cost for a taco or coffee franchise can range anywhere between a few hundred thousand to over two million dollars.

You can learn more about the estimated initial investment for each brand by referencing Item 7 in their most recent Franchise Disclosure Document.

As a franchisee, you’ll also be responsible for paying ongoing fees. These fees will vary depending on the brand you decide to do business with.

For example, Del Taco has three minimum financial requirements all our potential franchisees must meet.

• Minimum Liquidity: $500,000
• Minimum Net Worth: $1.0MM
• Franchise Fee: $35k per Location

As a franchisee, you’ll also be responsible for paying the ongoing royalty fees below…

• 5% Royalty of Net Sales
• 4% Marketing Fee of Net Sales

These royalties ensure you have the best possible resources to run your taco business and bring customers to your location.

Check Out These Additional Resources

We hope this article gave you a better understanding of the differences between owning a taco franchise vs coffee franchise.

At Del Taco, we serve freshly prepared, craveable food at an unbeatable value and are looking for franchisees who want to grow with our brand.

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

• How Much Does a Taco Franchise Cost?
• 10 Best Taco Franchises in the USA
• Which Taco Franchise Makes the Most Money?

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