Del Taco recently commenced the marketing of certain company-operated restaurants across four non-core Western markets. The refranchising of these restaurants is expected to be completed by the summer of 2020 and is planned to help shift company ownership to approximately 45 percent of the Del Taco system while stimulating growth in new restaurants and existing restaurant AUVs.
Del Taco first announced its Restaurant Portfolio Optimization plan in January 2019 and subsequently retained The Cypress Group, a leading restaurant and franchise investment banking firm, to manage this refranchising initiative. Cypress has more than 25 years of multi-unit and franchise M&A experience in the restaurant industry, including significant engagements related to corporate refranchising processes.
The marketing process is targeting new or existing franchise groups with proven restaurant operations capabilities and a strong, consistent track record of new unit development who commit to continued brand growth in existing and/or other markets.
John D. Cappasola, Jr., President and Chief Executive Officer of Del Taco, says, “We are excited to be launching these opportunities to the franchise M&A marketplace through our partnership with The Cypress Group. The Del Taco brand has proven portability across a broad geographic footprint and we believe refranchising our non-core Western markets provides potential franchise partners with an attractive entry point to our system from which they can drive further system-wide growth through new development.”