
While Captain Ds and Del Taco are two very different restaurant concepts under the ownership of Sagittarius Brands, they share several traits of interest to potential franchisees.
When asked what makes Del Taco appealing to a potential franchisee, Ron Petty, president of development for Sagittarius Brands, quickly rattles off a list of impressive numbers: 15 years of positive comps in the last 17, the leader in average unit volume among quick-service Mexican concepts, consistent growth in earnings, and a record of success in moving the brand into 14 states.
But the restaurant business is not just about numbersits also about food. Everything we do is fresh-made, says Petty. We give you a one-pound burrito for under $4, and you would have paid $7 elsewhere. We cook the beans daily and chicken every hour. We grate the cheese twice daily. Its similar to Fresh Mex fast-casual concepts, but you get a lot more value.
Del Taco also offers burgers, fries, and shakes, and while these are a small percentage of overall sales, Petty notes that they are keys in avoiding the veto vote from customers.
We offer a lot of variety and flexibility in our menu, he says. Were continuing to upgrade our menu. Its a two-tier strategy: We always strive to improve our current product quality while also introducing new quality menu items.
Del Taco is primarily looking to expand in the Southeast, where 70 new commitments were signed in 2007. Petty says this is a big opportunity, since the brand was actually the leading quick-service Mexican concept in the area until 1983, when the then-owner sold the eastern region. Everyone is waiting for it to come back, says Petty. Theres a lot of pent-up demand.
Captain Ds is already primarily a Southeastern concept, and Petty says thats where the brand will continue to grow. It has heavy penetration in most Southeastern markets, so the strategy is to fill in the areas where it is currently under-penetrated. Texas is also a big push. Based on the stores we already have there, its a great opportunity, says Petty.
Like Del Taco, Captain Ds offers fresh-made menu items. This includes hand-cut fish dipped in batter that is made daily, and hushpuppies made from scratch. Petty points to the check averageabout $6and notes that Captain Ds offers a great value proposition in terms of quality and portion.
In terms of what Sagittarius Brands is looking for in a franchisee, Petty says they want experienced operators, though not necessarily big operatorspreferably someone who has three to five stores. They like to do two- to three-store deals and look for a minimum of $1 million net worth and $350,000 in liquid assets.
Sagittarius offers full support to franchisees, from real estate and market planning to a POS system with an in-house help desk to an opening team to help get new stores off the ground.
Also noteworthy for potential franchisees is the fact that more than 50 percent of Sagittarius Brands locations are company owned. Thats a good thing for franchisees, says Petty. Because we have so many company stores, you can be sure anything we put in the field is well thought-out. And we make most of our money from running restaurants, so were not driven to do franchise deals just for the sake of deals. Were very careful in the selection of new franchisees.
For more information about franchising opportunities, visit www.deltaco.com or www.captainds.com.

