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Del Taco


Del Taco is an American fast-food restaurant chain specializing in Mexican-inspired cuisine including tacos, burritos, quesadillas, and nachos, alongside American items such as French fries, hamburgers, and shakes.
Founded in 1964 by Ed Hackbarth and David Jameson, the first location opened in Yermo, California, offering inexpensive tacos for 19 cents and cheeseburgers for 24 cents.
The chain pioneered a hybrid menu blending Mexican staples with fast-food staples like fries and burgers, emphasizing fresh, made-to-order preparation in the quick-service restaurant plus (QSR+) segment.
As of early 2025, Del Taco operates 594 locations across 15 states, with a strong concentration in California, and underwent acquisition by Yadav Enterprises in October 2025.
Notable for its longevity among Mexican QSR brands and franchise model supporting expansion, Del Taco maintains a loyal customer base through value-driven meals and innovations like the Epic Burrito line, while retaining original recipes at select legacy sites in Barstow, California.

History

1960s

Del Taco traces its origins to , when Ed Hackbarth and David Jameson opened the chain's first restaurant, initially named Casa Del Taco, in , on September 16. The location, situated along , served as a roadside stand targeting highway travelers with a simple menu featuring tacos priced at 19 cents, tostadas, , and cheeseburgers at 24 cents. Hackbarth, who had prior experience operating food stands including a hot dog venue, partnered with Jameson to launch the venture amid rising demand for affordable, quick-service Mexican-inspired food in Southern California. Early operations emphasized fresh preparation and low prices, contributing to immediate popularity; the inaugural site reportedly sold dozens of tacos on its first day of business. In 1966, Hackbarth, Jameson, and associate Dick Naugles incorporated Red-E-Food Systems, Inc., to oversee the brand's development and initiate , marking the start of systematic expansion. By the end of the decade, Del Taco had established a handful of additional outlets primarily in the region, blending tacos and burritos with burgers to appeal to a broad customer base distinct from emerging pure-Mexican competitors like .

1970s

In 1973, Red-E-Food Systems, Inc., the parent company of the chain formerly known as Casa del Taco, rebranded to Del Taco, Inc., coinciding with a period of accelerated expansion in which the company opened approximately one new restaurant per month. This growth built on the chain's early success in , where it had established a foothold with affordable Mexican-inspired like tacos and burritos. By 1976, founders Ed Hackbarth and David Jameson sold Del Taco to a group of investors, enabling further scaling amid rising demand for quick-service dining. The acquisition supported operational enhancements, including menu diversification to attract broader customers; new items such as the —a soft taco variant wrapped in a hamburger-style —were introduced to differentiate from competitors. Del Taco's footprint expanded steadily through the latter half of the decade, reaching 50 locations by 1977 and doubling to 100 restaurants by 1978, primarily concentrated in but beginning to extend into adjacent markets. This milestone reflected effective strategies and site selections in high-traffic suburban areas, though the chain remained regionally focused without national penetration at the time.

1980s

In the early 1980s, Del Taco operated amid fierce competition from chains like , with the Mexican fast-food market experiencing saturation from prior expansions but sustained demand for affordable tacos and related items. By mid-decade, the chain had grown to hundreds of locations under W.R. Grace & Co.'s ownership, reflecting aggressive development in and select other markets. In October 1986, Del Taco announced the acquisition of 181 restaurants from W.R. Grace & Co., a move that strengthened its operational base and facilitated further consolidation. To address growing late-night consumer preferences, Del Taco introduced 24-hour operations at select outlets during the decade, enhancing accessibility and sales potential. The most transformative development came in 1988, when investor Anwar Soliman acquired Del Taco and merged it with the chain, adding approximately 170 locations primarily in and integrating complementary elements like charbroiled items. This merger roughly doubled Del Taco's scale overnight, enabling broader geographic reach and economies of scale in supply and marketing, though it also introduced integration challenges from differing operational styles.

1990s

In January 1990, Del Taco, then operating as Del Taco/Naugles Inc., was acquired in a management-led buyout from investor Anwar Soliman by a team including former president Wayne W. Armstrong, amid efforts to stabilize operations following the 1988 merger with the Naugles chain. Later that year, in August, Kevin K. Moriarty, a veteran executive from Burger King, joined as president and chief executive officer, leading initiatives to reposition the chain competitively against larger rivals like Taco Bell. By the early 1990s, the company operated approximately 320 restaurants, with only 75 franchised, and announced plans to reach 500 locations by 1995 through aggressive expansion. In 1992, Del Taco regained exclusive nationwide rights to its brand name from W.R. Grace and Company, removing prior territorial restrictions primarily limited to California and facilitating broader U.S. growth. The expansion efforts strained finances, culminating in a Chapter 11 bankruptcy filing on March 30, 1993, triggered by $94 million in debt accumulated from the 1990 , though the underlying operations remained profitable. Under Moriarty's leadership, the company restructured during bankruptcy, focusing on cost controls, menu enhancements, and marketing to improve customer experience and brand perception. By 1995, Del Taco had grown to around 300 stores, falling short of its aggressive targets but stabilizing amid the recovery. The latter half of the decade marked a rebound, with total systemwide sales reaching an estimated $250 million by 1997 and per-store sales at established locations more than doubling since 1990, driven by operational efficiencies and targeted pushes. These gains positioned Del Taco for further national footprint expansion into the , emphasizing fresh ingredients and value pricing to differentiate from competitors.

2000s

In 2000, Del Taco operated 372 restaurants across ten U.S. states, reflecting steady growth from the prior decade's recovery efforts under CEO Kevin Moriarty, who had led the company since 1990. The chain expanded into markets such as and that year, while achieving per-store sales of approximately $1 million annually by early 2003, marking 13 consecutive years of sales increases. Total systemwide sales reached $388 million in 2002, supported by a focus on operational efficiencies and regional . Further geographic expansion occurred in the mid-2000s, with initial forays into Texas, Montana, and Washington state beginning around 2003. By 2006, the number of locations had nearly doubled from early-decade levels, culminating in the opening of the 500th restaurant in 2008. This growth phase emphasized bold marketing strategies, including the launch of the Del Taco Super Special Show, a humorous advertising campaign highlighting the brand's value proposition. Leadership transitioned in 2006 when and his partners sold the company to the family and associated investors, ending Moriarty's tenure amid the chain's expansion momentum. Menu innovations during the decade included the introduction of Caramel Cheesecake Bites as a popular option, aligning with efforts to diversify beyond core and offerings. The period was not without legal challenges; in January 2000, Del Taco settled a lawsuit with Zorro Productions and by modifying its "Del Taco" advertising character to avoid resemblance to the figure. Additionally, in February 2002, a group of former Black employees filed a suit alleging and unfair promotion practices at Los Angeles-area stores, though the case remained unresolved as of mid-2003.

2010s

In 2010, Del Taco announced plans to expand into with up to 80 new locations, marking a return to the state after previous operations there. The chain operated over 550 restaurants across the western and at that time. In 2010, it introduced the Santa Fe Chicken Soft Taco, featuring grilled with green chiles, cheese, and ranch sauce. By 2011, Del Taco rolled out a redesigned originating from 2010 efforts, which reduced new-build costs by approximately 30 percent while incorporating a fresher aesthetic with earth tones and open layouts. The company maintained its approximate 550-store footprint through the mid-decade, focusing on operational efficiencies under private ownership by entities including Gala Capital Partners. Around 2013, Del Taco launched its Buck & Under value menu to compete in the quick-service segment, offering items priced at or below one dollar. On March 12, 2015, Del Taco Holdings, Inc. entered a definitive merger agreement with Acquisition Corp., a that had raised $150 million in its . The transaction, completed in June 2015, resulted in Del Taco becoming a publicly traded entity on under the ticker TACO, with the Levy family and investors acquiring $120 million in to recapitalize the . This move valued the company at around $500 million including and enabled broader growth initiatives. Post-IPO, Del Taco emphasized value and innovation; in 2018, it expanded its Buck & Under menu's "Buck & Change" section to most locations, adjusting prices slightly upward for items like tacos and burritos to sustain margins amid competition. By April 25, 2019, the chain introduced Beyond Tacos using Beyond Meat's plant-based crumbles, targeting vegetarian and flexitarian consumers and paving the way for additional meat-alternative offerings. In 2016 alone, nine new restaurants opened across six states, contributing to steady system growth nearing 600 locations by decade's end.

2020s

In March 2020, Del Taco operated approximately 600 restaurants across the , primarily in the western and southern regions. The chain navigated the through adaptations such as enhanced delivery partnerships and drive-thru emphasis, maintaining operational continuity without major reported disruptions to its core model of Mexican-inspired . On December 6, 2021, Inc. announced its agreement to acquire Del Taco Restaurants, Inc. for $12.51 per share in cash, valuing the transaction at approximately $575 million including debt. The deal, aimed at combining complementary quick-service brands to drive synergies in and , closed on March 8, 2022, after shareholder and regulatory approvals. Post-acquisition, Del Taco retained its independent branding and operations under oversight, with initial focus on refranchising company-owned units to existing operators for improved efficiency. From 2022 to 2024, Del Taco pursued modest expansion, including new franchise developments in states like , while introducing value-oriented menu items such as the "$2 and Under" platform to counter inflationary pressures. However, the chain faced headwinds, including a slight decline in unit count to around 594 by early 2025 amid broader fast-food sector challenges like rising labor costs and consumer shifts. By late 2024, approximately 80% of locations operated under agreements. In February 2025, franchisee Newport Ventures filed for and shuttered all 18 of its outlets, reducing the state's Del Taco presence to a single unit and highlighting vulnerabilities in multi-unit franchise operations. Financial strains intensified, with reports of escalating overdue payments—from 0.26% of bills 61-90 days late in 2024 to 8.11% by January 2025—contributing to Jack in the Box's decision to divest. On October 16, 2025, agreed to sell Del Taco to franchisee Yadav Enterprises for $115 million, a transaction expected to close by January 2026 and marking a rapid reversal from the acquisition. The sale reflects Yadav's intent to accelerate growth through new builds and refranchising, leveraging its existing portfolio of over 100 Del Taco units. Despite these transitions, Del Taco continued limited openings, such as its first location in in September 2025.

Ownership and Corporate Structure

Major Acquisitions and Divestitures

In 1988, Del Taco merged with the Southern California-based Naugles restaurant chain, significantly expanding its footprint to over 180 locations across multiple states and enhancing its market presence in the Mexican fast-food sector. Del Taco underwent a reverse merger with Levy Acquisition Corp., a special purpose acquisition company, on June 30, 2015, resulting in the combined entity being renamed Del Taco Restaurants, Inc., and listing on the Nasdaq under the ticker TACO; this transaction valued the company at approximately $490 million and marked its return to public markets after previous private ownership phases. On March 8, 2022, Inc. completed its acquisition of Del Taco Restaurants Inc. for approximately $585 million, including the assumption of debt, integrating the chain as a wholly owned to leverage synergies in operations and menu offerings despite initial skepticism from analysts regarding the strategic fit. On October 16, 2025, announced the divestiture of Del Taco Holdings Inc. to Yadav Enterprises Inc., a franchisee group, for $115 million in cash, representing an approximately 80% decline from the 2022 purchase price amid challenges such as declining sales and operational underperformance under combined ownership.

Leadership and Governance

Del Taco functions as a wholly owned of Inc., with its operations and strategic decisions governed by the parent company's executive team and . The of , Lance Tucker, assumed leadership on March 31, 2025, following his prior role as interim CEO and ; Tucker oversees the combined portfolio, including Del Taco's refranchising efforts and performance metrics. At the brand level, Del Taco's day-to-day leadership is provided by Brand President Tom Rose, who was appointed on September 12, 2023, to drive unit growth, menu innovation, and franchise expansion amid post-acquisition integration challenges. Governance at Jack in the Box is directed by a chaired by David L. Goebel, comprising independent directors such as Guillermo Diaz, Jr., Madeleine Kleiner, Enrique Ramirez Mena, Michael W. Murphy, and James M. Myers, who focus on fiduciary oversight, , and across subsidiaries like Del Taco. This structure emphasizes operational efficiency and financial accountability, with board committees addressing , compensation, and to align subsidiary performance with corporate objectives. On October 16, 2025, Jack in the Box entered a definitive agreement to divest Del Taco Holdings Inc. to Yadav Enterprises Inc., a Fremont, California-based franchise operator, for $115 million in cash, subject to adjustments and customary closing conditions; the transaction is anticipated to close by January 2026, shifting Del Taco to private ownership. Yadav Enterprises, which operates over 550 restaurants including Jack in the Box units, is led by President and CEO Anil Yadav, a franchise veteran with more than 30 years in the industry starting as a Jack in the Box crew member. Post-closing, governance would transition to Yadav's private structure, potentially streamlining decision-making but reducing public disclosures.

Operations

Geographic Footprint and Availability

As of January 15, 2025, Del Taco operates 594 restaurants across 18 states , with no international locations. The chain's footprint remains heavily concentrated in the Western and Southwestern regions, reflecting its origins in , where it maintains the largest presence with 354 outlets comprising approximately 60% of total units. Nevada follows with 44 locations and with 38, underscoring a strong regional dominance in states with high and cultural affinity for Mexican-inspired . Recent franchising efforts have driven incremental expansion into the Southeast and Midwest, including new market entries in states such as , , , , and . For instance, in June 2025, Del Taco announced a five-store development agreement in , marking its initial push into that Midwestern state. Similarly, a new restaurant opened in , in September 2025, supporting broader Southeast growth plans that include commitments for up to 44 additional units in markets like Orlando, Tampa, and Jacksonville. These developments, primarily through agreements, aim to leverage underserved areas while maintaining operational focus on domestic markets. Availability is centered on traditional quick-service formats, including drive-thru, dine-in, and at physical sites, supplemented by online ordering via the Del Taco and , as well as partnerships with third-party platforms like and in supported regions. The chain does not operate beyond U.S. borders, with zero international units reported. Corporate strategies emphasize refranchising existing stores—such as 47 Del Taco units in fiscal 2024—to fuel this controlled geographic scaling without overseas ventures.

Franchising Expansion

Del Taco began its franchising efforts in 1966 through Red-E-Food Systems, Inc., established by co-founders Ed Hackbarth, David Jameson, and Rex Naugle to the Casa Del Taco concept, marking an early emphasis on decentralized growth via independent operators. The chain's model expanded operations starting in 1967, combining quick-service efficiency with fresh, made-to-order Mexican-inspired items to attract franchisees in and beyond. By the late 1970s, franchising contributed to rapid scaling, with the total number of restaurants reaching 50 in 1977 and 100 by 1978, supported by menu additions like the that appealed to broader markets. This period laid the foundation for geographic diversification, though the precise split between company-owned and units during early decades is not uniformly documented in corporate records. Following the 1988 merger with the chain, which added over 170 locations primarily in , Del Taco refocused on franchise development to sustain momentum amid competitive pressures in the fast-food sector. In the and , franchising efforts included targeted regional deals, such as agreements for new stores in the Northeast, even as the overall chain experienced periods of contraction from 300 locations in 1995 due to operational challenges and market saturation. Post-2010, under evolving ownership—including from 2015 to 2021 and subsequent integration with —Del Taco intensified refranchising to boost efficiency and same-store sales, achieving eight consecutive years of franchise same-store sales growth by fiscal 2020, with quarterly increases of 6.5% in Q3 and 7.5% in Q4. Recent expansion has accelerated significantly, with nine franchise development agreements signed in 2021 for 68 restaurants across 10 states, incorporating prototypes like the "Fresh Flex" design for smaller footprints and drive-thru optimization. In fiscal 2023, Del Taco secured over 138 franchise commitments, part of a strategic push toward over 90% franchised operations by 2026, driven by strong unit economics and support for multi-unit developers. As of 2022, franchised locations numbered 301 out of approximately 591 total units, representing a shift from 290 company-owned stores; by 2024, franchising accounted for 71% of 592 U.S. locations, reflecting sustained commitments to franchisee training, site selection, and supply chain integration.

Products and Menu

Signature Offerings

Del Taco's signature offerings center on its tacos and burritos, which emphasize fresh preparation and have formed the core of the menu since the chain's founding in 1964 by Ed Hackbarth and David Jameson in . The original menu included tacos priced at 19 cents alongside tostadas, fries, and cheeseburgers at 24 cents, establishing tacos as a foundational item. The classic Del Taco taco features seasoned , shredded , and house-grated wrapped in a crunchy , reflecting the chain's emphasis on simple, affordable Mexican-inspired . Bean and cheese burritos, available with red or green sauce, remain a staple, often cited for their value and consistency across locations. Introduced as a premium line, Epic Burritos® offer oversized portions stuffed with ingredients like grilled chicken, steak, , and queso, differentiating Del Taco from competitors through larger servings and customization options. Chili Cheddar Fries™, topped with seasoned beef, sauce, and , blend American and Mexican elements, contributing to the chain's hybrid appeal.

Menu Innovations and Customization

Del Taco introduced its Epic Burritos line on November 7, 2013, consisting of oversized burritos packed with premium ingredients like slow-cooked beans, seasoned meats, fresh guacamole, and cheeses, aimed at differentiating from standard fast-food offerings through larger portions and layered flavors. The lineup expanded in June 2014 with the Epic Cali Steak & Guac Burrito, incorporating grilled steak, fresh avocado, and citrus rice, followed by additional varieties such as the Epic Steak & Potato Burrito and Epic Chicken Chipotle Ranch Burrito later that year. By 2017, further innovations included the Epic Queso Chicken Burrito and Epic Chipotle Avocado Burrito, emphasizing bold sauces and fresh elements to appeal to premium-seeking customers. In the 2020s, Del Taco continued menu evolution with a "barbell" strategy balancing value items and premium innovations, rolling out Crispy Chicken options, expanded Epic Burrito variants, and fresh guacamole integrations to drive higher transaction values. Recent developments include the Chipotle Carne Asada Steak Burrito added in November 2024 to the value menu, followed by the nationwide launch of the Del Dorado Chicken Menu on September 30, 2025, featuring marinated grilled chicken, new Salsa Roja, slow-cooked beans, and spicy Jack cheese in items like the Del Dorado Chicken Epic Burrito. In April 2025, the chain debuted El Big Boxes, value-oriented combo meals highlighting generous portions of signature items like burritos and tacos to reinforce its heritage of substantial, real-ingredient meals. Customization forms a core aspect of Del Taco's operations, with items prepared made-to-order using fresh ingredients, allowing modifications such as protein substitutions (e.g., for ), selections (zesty red, tangy green, or ), and additions like extra cheese, , or fresh toppings. This flexibility extends to ordering via the and , where customers can specify "bold" enhancements—increasing meat and cheese quantities—and tailor burritos, tacos, and quesadillas with crunchy or soft shells, while options support full for events. Such practices align with the chain's emphasis on fresh , enabling varied combinations without predefined limitations, though availability may vary by location.

Marketing and Branding

Advertising Campaigns

Del Taco's advertising efforts have historically emphasized fresh preparation, value pricing, and differentiation from competitors through direct and indirect comparisons. In November 1988, the chain initiated a provocative campaign that mocked unnamed rivals as the " Taco Co.," positioning Del Taco's products as superior in quality and authenticity without naming specific brands like . This approach aimed to capture in the competitive fast-food segment by highlighting perceived shortcomings in competitors' offerings, such as inferior ingredients or assembly-line production. By July 1994, Del Taco targeted younger demographics with a promotional using milk caps distributed in kids' meals, supported by radio and television spots designed to increase visits from children aged 6 to 12 and their families. The campaign integrated physical collectibles with broadcast media to build among price-sensitive households. In January 2000, following a legal over portrayals in its ads featuring a cartoonish Del Taco , the company modified and ultimately discontinued that campaign, shifting focus away from anthropomorphic branding elements. Entering the 2010s, Del Taco's messaging pivoted toward operational transparency and speed. A 2013 campaign introduced the tagline "UnFreshing Believable," underscoring daily chopping of fresh vegetables and preparation to contrast with perceived industry norms of pre-packaged ingredients. This was reinforced in a 2017 television spot titled "You Never Have to Choose," which promoted the coexistence of fresh components and rapid service as a core differentiator. By June 2018, ads under "Celebrating the Hardest Working Hands in " spotlighted employee efforts in food assembly, aligning with a to "Del Taco" from its prior iteration to evoke handmade authenticity. In April 2025, Del Taco unveiled a refreshed national campaign tied to its "El Big Boxes" value meals, leveraging its roots to stress bold flavors, high-quality proteins, and affordability amid inflationary pressures in the quick-service sector. These efforts have consistently utilized television, digital spots, and in-store promotions to drive traffic, with a focus on empirical appeals to freshness—such as real-time ingredient sourcing—over abstract lifestyle messaging.

Brand Positioning and Promotions

Del Taco positions itself in the quick-service restaurant sector as a value-oriented Mexican-inspired chain that emphasizes freshly prepared ingredients, customizable menu options, and affordability without compromising on portion sizes or flavor intensity. The brand leverages its origins in , since 1964, to highlight authentic, bold tastes rooted in culinary influences, differentiating from purely assembly-line competitors by promoting made-to-order preparation and house-made elements like and salsas. This strategy targets budget-conscious consumers seeking hearty meals, positioning Del Taco as the second-largest Mexican brand in the U.S. by unit count, with a focus on delivering quick service alongside perceived higher quality than typical fast-food alternatives. Promotional efforts reinforce this positioning through innovation-driven value propositions, such as the April 2025 launch of "El Big Boxes"—oversized combo meals featuring items like Epic Burritos and Queso-Fried Chicken Tacos paired with fries and drinks for under $10, marketed as embodying the brand's "bold heritage" via a refreshed campaign emphasizing roots and craveable excess. Earlier initiatives include the "Go Bold or Go Home" multimedia campaign, which incorporated consumer pep rallies and to amplify the brand's adventurous, unapologetic identity. Creative tactics, like the "Eau de French Fry" promotion—a humorous soap-scented distributed via to hype Fresh Faves Box Meals—aimed to generate buzz and app downloads for free taco coupons, blending whimsy with direct sales incentives. Ongoing promotions center on weekday deals to drive traffic, including Taco Tuesdays offering three regular tacos for $2.49 and Thursdays with three grilled tacos for $3.59, available via the Del Yeah! Rewards to encourage and . In May 2025, Del Taco executed a brand refresh with updated visuals and partnered with agencies and Mediaspot for targeted media buys, focusing on high-quality, accessible items like fresh-grilled proteins to sustain consumer appeal amid market competition. These efforts align with a broader strategy prioritizing innovation and value messaging, as evidenced by Del Taco's recognition as the top in the 2024 10Best Readers' Choice Awards.

Cultural and Economic Impact

Presence in Popular Culture

Del Taco has appeared in several television series and films, often as a casual reference to consumption in everyday or comedic contexts. In the Netflix series (2015–2022), the character Frankie Bergstein, portrayed by , frequently expresses her affinity for Del Taco, incorporating mentions of its menu items into multiple episodes across the seven-season run. The chain is referenced in The Big Bang Theory season 3, episode 11, "The Maternal Congruence," which aired on December 14, 2009, where Penny attributes Beverly Hofstadter's described "warm feeling" to the effects of eating at Del Taco during a stop en route. In the animated series South Park season 16, episode 6, "I Should Have Never Gone Ziplining," which premiered on April 18, 2012, a narrative voiceover describes the digestive aftermath inside Eric Cartman's stomach as "the kung pao has just met with the Del Taco he ate for breakfast," highlighting the chain amid a sequence of food-induced chaos. The 2009 comedy film Land of the Lost features Dr. Rick Marshall, played by , recounting a binge-eating episode that includes Del Taco among other fast-food stops, stating, "Then I had Popeye's, Del Taco," as part of his character's self-destructive spiral leading to a blackout.

Employment and Market Contributions

Del Taco operates approximately 594 restaurants across 15 states, primarily in the western and , providing opportunities in food service, management, and support roles. The chain employs around 7,300 individuals, including both corporate and staff, contributing to local labor markets in regions with high concentrations of outlets such as , which hosts the majority of locations. These positions often serve as entry-level jobs for younger workers and immigrants, with typical roles involving quick-service preparation and customer interaction, though average wages in the sector remain below national medians for full-time . In terms of market contributions, Del Taco generated $974 million in systemwide sales in 2024, supporting a network that includes 71% franchised units and fostering among independent operators. As the second-largest Mexican quick-service restaurant chain behind —which commands roughly 16 times the scale—Del Taco maintains a niche in value-oriented Mexican-inspired , influencing competitive pricing and menu offerings in the segment. Its operations indirectly bolster supply chains for ingredients like , tortillas, and produce, while models distribute economic activity to smaller owners, though recent corporate shifts, including a $115 million sale in October 2025, may affect long-term stability. Consumer surveys in 2024 ranked Del Taco highly for satisfaction, underscoring its role in sustaining demand within the $30 billion-plus Mexican fast-casual market.

Controversies

Legal Disputes

In 2018, the U.S. (EEOC) filed a against Del Taco, alleging that the company subjected female employees, including minors as young as 15, to severe by male managers at multiple locations between 2015 and 2017, including unwanted touching, explicit comments, and a , followed by retaliation against complainants. The suit claimed violations of Title VII of the of 1964. In December 2020, Del Taco agreed to a $1.25 million settlement with the EEOC, providing back pay, compensatory damages, and injunctive relief such as anti- training and policy revisions, without admitting liability. A related 2022 by former employee Daisy Rose Spradlin accused Del Taco of retaliating against her in violation of the from the EEOC case, after she reported ongoing . Del Taco has faced multiple wage-and-hour class actions under labor . In Torrez v. Del Taco, LLC (filed around 2017), plaintiffs alleged failure to pay minimum wages, , meal and rest breaks, and accurate wage statements for non-exempt employees from October 28, 2011, to November 12, 2021. The case settled in June 2022 for $50 million, covering approximately 50,000 class members, with funds allocated for unpaid wages, penalties, and attorney fees; a judge later scrutinized the fee request but approved the deal. Earlier cases, such as Coughenour v. Del Taco (2020), combined wage claims with allegations, though the upheld for some issues due to the plaintiff's disaffirmation of a minor-signed agreement. Franchise-related disputes have involved contract breaches and operational failures. In 2003, Del Taco initiated against franchisees Jagdishbhai and Hansaben Patel for alleged breaches of their agreement, leading to a appeals ruling in that upheld award against the Patels for failing to participate properly. More recently, in 2024-2025, disputes with franchisees contributed to closures and bankruptcies; for instance, a 22-unit operator, Restaurant Group, filed for Chapter 11 bankruptcy in July 2025 amid financial strains and disagreements with Del Taco over performance and support. In February 2025, Del Taco terminated agreements with a franchisee, resulting in the closure of 18 locations, with the company citing the operator's "cavalier approach" to standards and prior consent to remediation terms, while the franchisee contested the actions in filings. An panel in an unspecified recent case ruled fully in Del Taco's favor on claims of fraud and misrepresentation by former Florida franchisees seeking $14 million. Additional suits include a 2017 class action over allegedly illegal employee background checks under the . No major resolved lawsuits directly implicating Del Taco as a chain were identified in public records.

Labor and Franchisee Issues

In 2020, Del Taco agreed to pay $1.25 million to settle a U.S. (EEOC) lawsuit alleging that managers at two locations subjected female teenage employees to near-daily , including vulgar comments, unwanted touching, and exposure to , while failing to address complaints. The settlement included a mandating anti-harassment training and policy changes across the company. In 2022, a former employee filed a lawsuit claiming Del Taco violated this decree by retaliating against her after she reported ongoing harassment. Del Taco also faced wage-and-hour violations, culminating in a $50 million class-action settlement in 2022 for California employees alleging unpaid overtime, missed meal and rest breaks, and improper wage calculations under state labor laws. Earlier, in 2011, the EEOC sued a Del Taco franchisee in for and retaliation against a female employee, resulting in additional remedies. Franchisee challenges intensified after Jack in the Box's 2022 acquisition of Del Taco, with multiple operators filing for Chapter 11 bankruptcy in 2025 amid declining sales, high debt from merchant cash advances, and operational pressures. For instance, a 22-unit franchisee in Georgia and Alabama cited unexpectedly weak performance and financing burdens as reasons for filing in July 2025. In Colorado, a franchisee dispute led to the abrupt closure of 18 stores in February 2025, reducing the state's locations to one; Del Taco contested the operator's claims in court filings, asserting prior agreement to restructuring terms. Data from Small Business Administration-backed loans showed approximately 25% default rates among Del Taco franchisees, reflecting broader financial strain in the sector. In a separate case, an arbitration panel ruled fully in Del Taco's favor against a franchisee's allegations of sales misrepresentations and contract breaches.

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