Taco Bell vs Pepe's Mexican Restaurants Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Taco Bell vs Pepe's Mexican Restaurants including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Taco Bell Franchise
Pepe's Mexican Restaurants Franchise
Investment $152,250 - $3,049,100$207,000 - $652,000
Franchise Fee $25,000 - $45,000$10,000 - $15,000
Royalty Fee 5.5%4%
Advertising Fee 4.25%-
Year Founded 19621967
Year Franchised 19641967
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee --


Business Experience Requirements
 
Taco Bell Franchise
Pepe's Mexican Restaurants Franchise
Experience Multi-unit Operations Background

Restaurant, retail and/or gas convenience experience

Geographically Desirable

Open to locate in a strategic market and have local market knowledge

Experience/skills

Run a successfull business, with p/l responsibility, and development experience

Team Builder

Experience in staffing and retaining employees, demonstrated leadership skills

A culture fit with taco bell

Commitment to world class operations with strong recognition mindset

Financial Strength

Minimum of $750,000 liquid assets and $1,500,000 net worth

-

Financing Options
 
Taco Bell Franchise
Pepe's Mexican Restaurants Franchise
  In-House/3rd PartyIn-House/3rd Party
Franchise Fees No/NoNo/Yes
Start-up Costs No/NoNo/Yes
Equipment No/NoNo/No
Inventory No/NoNo/Yes
Receivables No/NoNo/No
Payroll No/NoNo/No

Training & Support
 
Taco Bell Franchise
Pepe's Mexican Restaurants Franchise
Training Available at headquarters, Additional training available-
Support Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluationsNewsletter, Meetings, Grand opening, Field operations/evaluations, Purchasing cooperatives
Marketing Co-op advertising, National media, Regional advertisingCo-op advertising, Ad slicks, National media, Regional advertising
Operations Franchisees required to buy multiple units/master licenses

Number of employees needed to run franchised unit: 25

Absentee ownership of franchise is allowed. (95% of current franchisees are owner/operators)

 Franchisees required to buy multiple units/master licenses; 25% of all franchisees own more than one unit

Number of employees needed to run franchised unit: 10

Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

Expansion Plans
 
Taco Bell Franchise
Pepe's Mexican Restaurants Franchise
US Expansion -Yes
Canada Expansion NoNo
International Expansion YesNo

Company Overviews

About Taco Bell

After leaving the Marine Corps at 23, Glen Bell came home to San Bernardino, California and opened a hot dog stand. But his real interest was in alternative menu items, so he began selling tacos for 19 cents from a side window of the hot dog stand. When the tacos proved as popular as he had hoped, he started opening Taco Tia stands where tacos were the stars of the menu. In 1962, Bell sold the Taco Tia brand to his partners and opened the first Taco Bell in Downey, California. Franchising began two years later. Taco Bell is the country's driving Mexican-propelled snappy administration eatery (QSR) mark. We serve made-to-request and adaptable tacos and burritos, among other craveable decisions, and are the primary QSR eatery to offer American Vegetarian Association (AVA)- confirmed menu items. Taco Bell and our more than 350 establishment associations work over 6,500 eateries throughout the United States that gladly serve around 40 million clients consistently.

Outside of our eateries, individuals can simply get to the Taco Bell mark through our Mobile Ordering and Payment App. In 2014, Taco Bell turned into the main QSR to dispatch a versatile application at eateries across the nation for both drive-through and feasting orders. Notwithstanding the portable application, individuals can arrange their most loved menu things by means of desktop on Ta.co or for conveyance through our association with DoorDash.

While Taco Bell is fundamentally a U.S. mark, Yum! Brands managed to make it the Company's third worldwide brand. Outside the U.S., we have over 300 Taco Bell units in 24 nations, barring the Yum! China Division.

The initial investment necessary to begin operation of a Taco Bell Express Unit ranges from $252,550 to $580,100 for a Custom Façade Unit, including $22,500 that must be paid to the licensor and $2,000 to $5,000 that must be paid to its affiliate for the first unit only.
For a Power-Pumper or In-Line Unit, the total investment ranges from $345,950 to $701,100, including $22,500 that must be paid to the licensor and $3,500 to $5,000 that must be paid to its affiliate for the first unit only.
The total investment necessary to begin operation of an existing restaurant ranges from $152,250 to $1,766,250 or more, excluding real property, all of which must be paid to licensor or an affiliate.

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About Pepe's Mexican Restaurants

Pepe's concept began in 1954 as a taqueria in Chicago. Pepe's Incorporated has been franchising Pepe's Mexican Restaurants since 1967. Pepe's prepares and serves a full menu of Mexican food items for dining-in or carryout. It also operates a 57,000 square foot U.S. commissary where it produces food products for its franchised restaurants and its branded product program. The branded product program sells food products to schools, factories, and office cafeterias, as well as the U.S. Military for use at military bases in the United States and abroad.