Del Taco’s Double Helping : Restaurants: A result of the chain’s 1989 acquisition of Naugles, the Lake Forest neighbors are thriving, their co-owner says. And store managers find it convenient to cross the street to borrow salsa.
It would seem at first glance to be a bit redundant. The Del Taco restaurants sit less than two football fields apart and vie for the attention of passing motorists with gaudy signs and the promise of drive-through guacamole.
Although close proximity might suggest a fast-food war is being waged at El Toro and Trabuco roads, nothing could be further from the truth. Just ask Richard C. Thompson.
“It is an unusual situation, I know,” said Thompson, co-owner of Del Taco store No. 246 and Del Taco store No. 136, separated only by a bank parking lot and a well-traveled street.
The double Dels are a quirk stemming from Del Taco’s 1989 acquisition of the Naugles restaurant chain. Store No. 246 on the northwest corner had been a Naugles. The stores’ continued existence also is a nod to the impact of South County traffic on storefront commerce, Thompson said.
“There’s a divider on Trabuco that makes it really, really difficult to turn around,” said Thompson whose BEC Enterprises Inc. owns 13 Del Taco franchises. “I’ve heard that El Toro is the second-busiest street in Orange County, so it’s tough sometimes to get where you want to go. We get them going both ways.”
The two stores are thriving, Thompson said, defying conventional business wisdom that duplicative services in a small area are a drain on profits. More than 1,000 customers a day visit the two sites, he estimates, many of them residents from nearby neighborhoods. Annual sales last year were $900,000 at No. 246, the larger store, and $550,000 at the smaller store, No. 136, on the southwest corner.
As long as the area can support two Del Tacos, the sites will remain, said Paul Hitzenberger, executive vice president of marketing for Del Taco Inc. in Orange.
“Those two sites perform equal to and above the average for the company,” Hitzenberger said. “It’s no different than setting up right next door or across the street from Taco Bell. We wouldn’t hesitate to do that.”
Unlike sharing a corner with Taco Bell, however, Del Taco gets all the business--the whole enchilada, if you will. “And we like that,” Hitzenberger said.
He pointed out that another pair of Del Tacos share the intersection of Lincoln and Tustin avenues in Orange--also a result of the acquisition of Naugles.
In Lake Forest, Thompson’s BEC Enterprises opened store No. 136 in 1979 and warily eyed the Naugles that opened across the street about six years later. But the competition ended when Del Taco swallowed up Naugles in 1989, closing some of the restaurants and reopening others as Del Tacos.
Thompson said BEC gambled and took over the neighboring Naugles restaurant, hoping that growing nearby communities, such as Rancho Santa Margarita and Nellie Gail, could sustain a double helping of quick-serve Mexican fare.
The stores’ close proximity draws some double-takes from motorists, but others, jaded by the ubiquitous nature of fast-food chains, just shrug and eat their tacos. “It seems like there’s a couple of these places on every corner,” said an unimpressed woman munching on lunch last week at store No. 136.
That’s not to say that the two stores are carbon copies. Store No. 246, the former Naugles, not only has fancier facilities, it has a 24-hour drive-through. Its sister shop across the street closes window service at 11 p.m. The larger store also has outdoor seating.
And there’s a soda gap.
“This one has a soda refill machine,” customer Victor Kornet said while filling a vat-sized cup with Mr. Pibb at the self-serve beverage dispenser in store No. 246. “The other one doesn’t. Big difference.”
Ah, but don’t assume store No. 136 is some sort of poor stepchild. It may be smaller, but it has more seating (a larger portion of No. 246 is devoted to a kitchen and storage area), and a remodeling is under way to spruce the place up a bit, Thompson said.
Having duo Del Tacos also gives managers a little flexibility. If they run short of salsa, for instance, they can bolt across the street. “Stuff like that happens all the time,” Thompson said, “and sometimes we can use employees from one store to work at the other if someone calls in sick.”
It all sounds so logical. Perhaps it would even make sense to open a third location on that same busy corner?
“Well, I don’t know,” Thompson said mulling over the idea. “I think we might need a new concept. Maybe El Pollo Loco?”
Cornering the Market
Neighboring Del Tacos vie for business at El Toro and Trabuco roads in Lake Forest. Food features are identical, including Tuesday Taco Night and the $1 Buck Breakfast. Here’s how the two stores compare:
DEL TACO NO. 246 * Opened: 1985 as Naugles, became Del Taco in 1989 * Maximum occupancy: 55 * Tables: 16, including three outside * Drinks: Free refills of Coke, Mr. Pibb, Cherry Coke, Hi-C Pink Lemonade, Sprite, Ramblin’ Root Beer, iced tea * Drive-up: Open 24 hours * Restrooms: Inside * Pay phone: Outside * 1994 sales: $900,000 * On the same corner: Albertson’s supermarket
DEL TACO NO. 136 * Opened: 1979 * Maximum occupancy: 70 * Tables: 17 inside * Drinks: No refills; Fanta Orange instead of Hi-C Pink Lemonade * Drive-up: Open 7 a.m.-11 p.m. * Restrooms: Outside * Pay phone: Outside * 1994 sales: $550,000 * On the same corner: Vons supermarket, Unocal 76 service station, Fidelity Federal Bank, Bank of America, Haircut Store salon
Source: Del Taco; Researched by JANICE L. JONES / Los Angeles Times
