Del Taco Will Push Franchising

After concentrating on developing an extensive network of company-owned stores, the Del Taco chain of Mexican-style fast-food restaurants said it plans to start aggressively franchising.

Only about 25% of the 279 units in the Del Taco/Naugle’s chain are franchised, but Paul Hitzelberger, executive vice president, said the field is ripe for expansion.

That’s because Mexican food is becoming more popular as a fast-food alternative across the country, with boulevards already bulging with burger joints. Also, Del Taco is prepared to offer exclusive territories to franchisees who can develop several restaurants in them.

Del Taco collects a total of $55,000 in fees for each franchised restaurant, then royalties of 5% and marketing fees of 4% on gross sales.