| ||||
Updated RecentlyDel Taco vs Pepe's Mexican Restaurants Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Del Taco vs Pepe's Mexican Restaurants including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
||
| Investment | $859,700 - $2,116,500 | $207,000 - $652,000 |
| Franchise Fee | $35,000 | $10,000 - $15,000 |
| Royalty Fee | 5% | 4% |
| Advertising Fee | 4% | - |
| Year Founded | 1964 | 1967 |
| Year Franchised | 1967 | 1967 |
| Term Of Agreement | 20 years | 20 years |
| Term Of Agreement | 20 years | 20 years |
| Renewal Fee | $25K | - |
Business Experience Requirements |
||
| Experience | Del Taco is seeking passionate candidates who are committed to outstanding customer service to join us as we rapidly expand across the country. Our ideal franchisee is an experienced restaurant operator or an investor who will partner with an experienced operator and is committed to developing at least two restaurants over time. | - |
Financing Options |
||
| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/Yes | No/Yes |
| Start-up Costs | No/Yes | No/Yes |
| Equipment | No/Yes | No/No |
| Inventory | No/Yes | No/Yes |
| Receivables | No/Yes | No/No |
| Payroll | No/Yes | No/No |
Training & Support |
||
| Training | Our leadership team, brand legacy and proven business model offer our franchisees the personal support, systems and resources needed to help establish manage and grow their business. From referring financing sources, site selection assistance and construction oversight to extensive hands-on management and crew training, new store opening support and robust marketing materials, our assistance doesn’t end when you open your doors. On-The-Job Training: 400 hours Classroom Training: 40 hours Additional Training: At training store | - |
| Support | Our professional and experienced support team provides: Ongoing management/crew training and manuals State-of-the-art POS systems to help franchisees track business indicators 24-hour technical support help desk and customer comment line Local store marketing toolbox, including community-based programs Effective advertising materials and market research Assistance from a dedicated Franchise Business Consultant and Franchise Marketing Manager Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform | Newsletter, Meetings, Grand opening, Field operations/evaluations, Purchasing cooperatives |
| Marketing | Co-op Advertising Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Co-op advertising, Ad slicks, National media, Regional advertising |
| Operations |
Franchisees required to buy multiple units/master licenses; 40% of all franchisees own more than one unit Number of employees needed to run franchised unit: 50 Absentee ownership of franchise is NOT allowed. (35% 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 |
||
| US Expansion | No | Yes |
| Canada Expansion | No | No |
| International Expansion | No | No |
Company Overviews
About Del Taco
Ed Hackbarth opened the first Del Taco restaurant in Barstow, California, in 1964. A few months later, he added a second restaurant with a drive-thru window in Corona, California. Locations eventually spread across California and many parts of the United States. Del Taco restaurants offer items including a value menu of tacos, burritos and nachos priced under $1, a Macho menu of large burritos, nachos and drinks, and an American menu featuring hamburgers, French Fries and shakes.
!["franchiserankingscom"]("https://d3t9r0kmeshe93.cloudfront.net/settings/71116cc7-281b-43ed-8275-5087635f96d8.png")
!["Entrepreneur]("https://d3fg11dgb68kbp.cloudfront.net/assets/photos/franchise-badge-22686037fc120ba1bd59c2c9fd6e0fbf.png"){kind=icon}
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.