Del Taco
Encyclopedia
Del Taco is a North America
n fast food
restaurant chain which specializes in American-style Mexican cuisine as well as American foods such as burgers, fries, and shakes. Del Taco is led by Paul Murphy, Chairman and CEO, and is headquartered in the city of Lake Forest
, California
.
, California
in 1964 by Ed Hackbarth. On the restaurant’s first official day of business, Del Taco made $169. In 1964, Hackbarth partnered with David Jameson. Success of the first restaurant led to two in Barstow
one in Needles, and a fifth restaurant in Corona
(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.
. 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; Eugene
, Oregon
; and Yuma
, Arizona
) to W. R. Grace and Company
. Grace, primarily a chemicals company, founded a new company, Del Taco Restaurants Inc. of Dallas
, Texas
, 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.
In February 1988, Del Taco merged their restaurants 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.. With the merger, Del Taco increased in size, and spread as far east as Hickory, NC. The 1980s also brought change in the operation, as Del Taco began to stay open all night long. In Lake Forest, California
, where the chain is currently headquartered, there are two Del Tacos directly across the street from each other on Trabuco Road - one of these having formerly been a Naugles.
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 recaptured exclusive rights to its name from W. R. Grace and Company and was now able to expand outside of California. 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: cheese
, lettuce
, and tomatoes. Later that year, 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 Vegas
, Nevada
; St. Louis, Missouri; and the Northeast Corridor.
Del Taco filed for protection in 1993 under Chapter 11 in U.S. Bankruptcy Court. 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 with 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 Northeast
with many more in the Southeast
, 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 hoped to be debt-free by 2002.
In early 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 Angeles
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.
In an effort to improve its reputation, Del Taco launched a sports-sponsorship program with teams in eight U.S. states, including the Mighty Ducks of Anaheim
and Phoenix Coyotes
hockey teams, basketball’s Los Angeles Clippers
and Utah Jazz
, 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 American stores, notably McDonald’s and Carl’s Jr., featured a decrease in annual sales.
In 2006, a private Nashville
, Tennessee
based holding named Sagittarius Brands, LLC, which is also the parent company of Captain D's
Seafood, purchased Del Taco.
In January 2008, Del Taco announced the opening of its 500th restaurant in Burbank
, California, USA. On April 27, 2009, a new Del Taco opened in Oviedo, Florida
, marking the first time since the 1980s that Del Taco was available in the Orlando
area.
. W. R. Grace and Company had previously owned and operated locations in Texas with a licensing agreement in 1978, but sold the restaurants to Taco Bell in 1992.
Captain D's was sold in 2010 to Sun Capital Partners.
Guillermo Perales, one of the largest Hispanic restaurateurs in the nation, signed a franchisee agreement to open additional locations in the Dallas-Fort Worth area of Texas.
Las Vegas, Nevada has the most Del Tacos of any one city and California has the most Del Tacos of any one state by far.
. 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 2006, Del Taco used Gregg Binkley
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 featured "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.
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
n fast food
Fast food
Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with preheated or precooked ingredients, and served to the customer in a...
restaurant chain which specializes in American-style Mexican cuisine as well as American foods such as burgers, fries, and shakes. Del Taco is led by Paul Murphy, Chairman and CEO, and is headquartered in the city of Lake Forest
Lake Forest, California
Lake Forest is a city in Orange County, California. The population was 77,264 at the 2010 census.Lake Forest incorporated as a city on December 20, 1991. Prior to a vote of the residents in that year, the community had formerly been known as El Toro since the 1880s...
, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
.
1960s
Originally named Casa Del Taco ("House of the Taco"), the first Del Taco restaurant was founded in YermoYermo, California
Yermo is a town in San Bernardino County, California. Its name is derived from the Spanish word for wilderness. It is located 13 miles east of Barstow in the Mojave Desert on Interstate 15, just south of the Calico Mountains...
, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
in 1964 by Ed Hackbarth. On the restaurant’s first official day of business, Del Taco made $169. In 1964, Hackbarth partnered with David Jameson. Success of the first restaurant led to two in Barstow
Barstow, California
Barstow is a city in San Bernardino County, California, United States. The population was 22,639 at the 2010 census, up from 21,119 at the 2000 census. Barstow is located north of San Bernardino....
one in Needles, and a fifth restaurant in Corona
Corona, California
Corona is a city in Riverside County, California, United States. As of the 2010 census, the city had a population of 152,374, up from 124,966 at the 2000 census...
(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
Naugle left the company early in the decade to start his own Mexican fast food chain, NauglesNaugles
Naugles was a Southern California 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 at the southwest corner of Fourteenth St. and Brockton Ave. 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; Eugene
Eugene, Oregon
Eugene is the second largest city in the U.S. state of Oregon and the 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 east of the Oregon Coast.As of the 2010 U.S...
, Oregon
Oregon
Oregon 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 Yuma
Yuma, Arizona
Yuma is a city in and the county seat of Yuma County, Arizona, United States. It is located in the southwestern corner of the state, and the population of the city was 77,515 at the 2000 census, with a 2008 Census Bureau estimated population of 90,041....
, Arizona
Arizona
Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
) to W. R. Grace and Company
W. R. Grace and Company
W. R. Grace and Company is a Columbia, Maryland, United States based chemical conglomerate.The company has two main divisions, Davison Chemicals and Performance Chemicals. The Davison unit makes chemical catalysts, refining catalysts, and silica-based products that let other companies make...
. Grace, primarily a chemicals company, founded a new company, Del Taco Restaurants Inc. of Dallas
Dallas, Texas
Dallas is the third-largest city in Texas and the ninth-largest in the United States. The Dallas-Fort Worth Metroplex is the largest metropolitan area in the South and fourth-largest metropolitan area in the United States...
, Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
, 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.
1980s
In 1981, Del Taco had roughly 350 restaurants (still located almost exclusively to California).In February 1988, Del Taco merged their restaurants 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.. With the merger, Del Taco increased in size, and spread as far east as Hickory, NC. The 1980s also brought change in the operation, as Del Taco began to stay open all night long. In Lake Forest, California
Lake Forest, California
Lake Forest is a city in Orange County, California. The population was 77,264 at the 2010 census.Lake Forest incorporated as a city on December 20, 1991. Prior to a vote of the residents in that year, the community had formerly been known as El Toro since the 1880s...
, where the chain is currently headquartered, there are two Del Tacos directly across the street from each other on Trabuco Road - one of these having formerly been a Naugles.
1990s
In 1992, Del Taco recaptured exclusive rights to its name from W. R. Grace and Company and was now able to expand outside of California. 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: cheese
Cheese
Cheese is a generic term for a diverse group of milk-based food products. Cheese is produced throughout the world in wide-ranging flavors, textures, and forms....
, lettuce
Lettuce
Lettuce is a temperate annual or biennial plant of the daisy family Asteraceae. It is most often grown as a leaf vegetable. It is eaten either raw, notably in salads, sandwiches, hamburgers, tacos, and many other dishes, or cooked, as in Chinese cuisine in which the stem becomes just as important...
, and tomatoes. Later that year, 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 Vegas
Las Vegas, Nevada
Las Vegas is the most populous city in the U.S. state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as The Entertainment Capital of the World, and is famous...
, Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
; St. Louis, Missouri; and the Northeast Corridor.
Del Taco filed for protection in 1993 under Chapter 11 in U.S. Bankruptcy Court. 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 with 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 Northeast
Northeastern United States
The Northeastern United States is a region of the United States as defined by the United States Census Bureau.-Composition:The region comprises nine states: the New England states of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont; and the Mid-Atlantic states of New...
with many more in the Southeast
Southeastern United States
The Southeastern United States, colloquially referred to as the Southeast, is the eastern portion of the Southern United States. It is one of the most populous regions in the United States of America....
, 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 hoped to be debt-free by 2002.
2000s
In 2000, Del Taco had 372 stores located in ten U.S. states. Also that year, an important deal was signed with the Compass Group PLC that enabled Del Taco stores to open on American military bases. The first to do business was the store at Patuxent River Naval Air Station at Maryland, USA in early 2001. Other Del Tacos were planned for American bases in Puerto Rico, Naples, and Italy.In early 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 Angeles
Los Angeles, California
Los Angeles , with a population at the 2010 United States Census of 3,792,621, is the most populous city in California, USA and the second most populous in the United States, after New York City. It has an area of , and is located 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.
In an effort to improve its reputation, Del Taco launched a sports-sponsorship program with teams in eight U.S. states, including the Mighty Ducks of Anaheim
Anaheim Ducks
The 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 Coyotes
Phoenix Coyotes
The Phoenix Coyotes are a professional ice hockey team based in Glendale, Arizona. They are members of the Pacific Division of the Western Conference of the National Hockey League . They play their home games at Jobing.com Arena....
hockey teams, basketball’s Los Angeles Clippers
Los Angeles Clippers
The Los Angeles Clippers are a professional basketball team based in Los Angeles, California, United States. They play in the Pacific Division of the Western Conference of the National Basketball Association...
and Utah Jazz
Utah Jazz
The Utah Jazz is a professional basketball team based in Salt Lake City, Utah. They are currently a part 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 American stores, notably McDonald’s and Carl’s Jr., featured a decrease in annual sales.
In 2006, a private Nashville
Nashville, Tennessee
Nashville is the capital of the U.S. state of Tennessee and the county seat of Davidson County. It is located on the Cumberland River in Davidson County, in the north-central part of the state. The city is a center for the health care, publishing, banking and transportation industries, and is home...
, Tennessee
Tennessee
Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area...
based holding named Sagittarius Brands, LLC, which is also the parent company of Captain D's
Captain D's
Captain D’s is a U.S.-based chain of fast-food restaurants, specializing in seafood and fish and chips. The restaurant also features a low-carbohydrate menu. The restaurant chain's headquarters is located in Nashville, Tennessee....
Seafood, purchased Del Taco.
In January 2008, Del Taco announced the opening of its 500th restaurant in Burbank
Burbank, California
Burbank is a city in Los Angeles County in Southern California, United States, north of downtown Los Angeles. The estimated population in 2010 was 103,340....
, California, USA. On April 27, 2009, a new Del Taco opened in Oviedo, Florida
Oviedo, Florida
Oviedo is a city in Seminole County, Florida, United States. The population was 26,316 as of the 2000 census. As of 2009, the population recorded by the U.S. Census Bureau is 32,961...
, marking the first time since the 1980s that Del Taco was available in the Orlando
Orlando, Florida
Orlando is a 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 area. According to the 2010 US Census, the city had a population of 238,300, making Orlando the 79th largest city in the United States...
area.
2010s
Del Taco returned to Texas with a new location in the north Dallas suburb of Denton, TexasDenton, Texas
The city of Denton is the county seat of Denton County, Texas in the United States. Its population was 119,454 according to the 2010 U.S. Census, making it the eleventh largest city in the Dallas/Fort Worth Metroplex...
. W. R. Grace and Company had previously owned and operated locations in Texas with a licensing agreement in 1978, but sold the restaurants to Taco Bell in 1992.
Captain D's was sold in 2010 to Sun Capital Partners.
Guillermo Perales, one of the largest Hispanic restaurateurs in the nation, signed a franchisee agreement to open additional locations in the Dallas-Fort Worth area of Texas.
Demographics
The chain is concentrated in 16 states in the U.S.A., with the majority of its restaurants on the west coast (California, Oregon, and Washington) or in other western states (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, and Utah).Las Vegas, Nevada has the most Del Tacos of any one city and California has the most Del Tacos of any one state by far.
Products
Del Taco serves two different types of food: Mexican and American. Their standard menu includes Hard Shell Tacos, Soft Tacos, Burritos, Quesadillas, Nachos, Jalapeño 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 figureZorro
Zorro is a fictional character created in 1919 by New York-based pulp writer Johnston McCulley. The character has been featured in numerous books, films, television series, and other media....
. 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 2006, Del Taco used Gregg Binkley
Gregg Binkley
Gregg 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 featured "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.