Welcome to Business Bites, the blog where food meets business strategy, and where every bite tells a story about what makes the biggest restaurant chains tick. If you’ve ever wondered why some restaurants become household names while others remain local favorites, you’re in the right place.
This series explores the decisions that transformed small restaurants into billion-dollar businesses. Every company has a unique story, and each one offers lessons in leadership, marketing, operations, and growth. Along the way, I’ll also share some of my favorite menu items because understanding the product is just as important as understanding the business behind it.
Today’s spotlight is on the restaurant that proved customers don’t have to choose between tacos and burgers:
Del Taco
Part 55 – Del Taco
In the fast-food industry, most restaurants focus on doing one thing exceptionally well. Burger chains sell burgers. Mexican chains sell tacos and burritos. Del Taco decided there was no reason customers couldn’t have both.
From its earliest days, Del Taco combined Mexican-inspired favorites with American classics like burgers, fries, and shakes. While that idea seemed unusual at first, it gave customers more options and attracted groups with different tastes. Pair that with fresh ingredients and affordable prices, and Del Taco carved out its own niche in one of the most competitive restaurant categories.
More than 60 years after opening its first restaurant, Del Taco has grown into one of the largest Mexican quick-service chains in the United States, operating nearly 600 locations across multiple states.
From a Desert Taco Stand to a National Brand
Del Taco was founded in 1964 when Ed Hackbarth and David Jameson opened the first restaurant in Yermo, California. The original menu featured 19-cent tacos, tostadas, fries, and 24-cent cheeseburgers. On opening day, the restaurant generated $169 in sales—the equivalent of selling roughly 900 tacos.
The concept quickly gained popularity throughout Southern California. By the late 1970s, Del Taco had grown to 100 restaurants, and its menu expanded to include quesadillas, burritos, desserts, and additional Mexican-inspired favorites. In 1988, the company significantly increased its footprint by merging with the Naugles restaurant chain, giving Del Taco hundreds of additional locations and introducing several popular menu items.
Unlike many competitors, Del Taco continued emphasizing fresh preparation. Restaurants grate cheese, chop vegetables, grill chicken and steak, and prepare guacamole in-house every day. Combined with drive-thru convenience and value pricing, this approach helped Del Taco develop a loyal customer base that continues to support the brand today.
My Go-To Order
When diving into a business, you’ve got to taste the product, right? Here are the items I usually order from Del Taco and why they’ve remained customer favorites.
The Del Taco: This signature taco perfectly represents the company’s commitment to offering generous portions with fresh toppings at an affordable price.
Epic Cali Bacon Burrito: Filled with steak, fries, cheese, and fresh ingredients, this burrito showcases Del Taco’s willingness to innovate beyond traditional Mexican fast food.
Crinkle-Cut Fries: Fries have been on the menu since the company’s first day in business and remain one of the features that separate Del Taco from many competitors.
Strawberry Shake: Offering burgers, fries, and shakes alongside tacos allows Del Taco to appeal to a much broader audience than a traditional Mexican chain.
Overall, my order reflects Del Taco’s strategy of combining Mexican favorites with American classics to create something uniquely its own.
The Business Behind the Billions
Offering More Variety Than Competitors
While many restaurant chains specialize in one cuisine, Del Taco built its menu around both Mexican-inspired food and American favorites. Customers can order tacos, burritos, burgers, fries, breakfast, and desserts during the same visit.
Offering greater variety allows restaurants to serve more occasions and satisfy larger groups with different preferences.
Using Fresh Ingredients as a Competitive Advantage
Del Taco differentiates itself by preparing many ingredients fresh inside each restaurant. Vegetables are chopped daily, cheese is grated in-house, guacamole is freshly made, and meats are grilled throughout the day.
Fresh preparation requires additional labor, but it creates noticeable quality that helps distinguish the brand from competitors relying more heavily on pre-prepared ingredients.
Winning on Value Without Sacrificing Quality
Del Taco has consistently positioned itself as a value leader by offering affordable menu items alongside premium choices. Customers can purchase inexpensive tacos or larger specialty burritos depending on their budget.
Giving customers options at multiple price points increases accessibility without limiting revenue opportunities.
Serving Every Daypart
Breakfast burritos in the morning, tacos for lunch, burgers for dinner, and late-night drive-thru service help Del Taco generate traffic throughout the day.
Restaurants that remain relevant across multiple meal occasions make better use of their facilities and employees.
Continuing to Innovate Around the Core Menu
Rather than abandoning its traditional tacos, Del Taco regularly introduces new burritos, premium tacos, limited-time offers, and seasonal promotions while keeping its signature products at the center of the menu.
Innovation works best when it complements a company’s identity instead of replacing it.
Lessons From Del Taco for Aspiring Entrepreneurs
Strategy | What It Teaches |
|---|---|
| Menu Variety | Serving multiple customer preferences expands your audience |
| Fresh Preparation | Investing in quality creates lasting competitive advantages |
| Value Pricing | Affordable options encourage repeat visits and broader appeal |
| All-Day Business | Serving multiple meal occasions increases revenue opportunities |
Final Thoughts
Del Taco demonstrates that businesses don’t always have to choose between specialization and variety. By combining Mexican-inspired favorites with American classics, the company created a unique position that few competitors have successfully replicated.
Perhaps the most impressive aspect of Del Taco is its ability to balance affordability with freshness. Preparing ingredients daily while maintaining value prices isn’t easy, but it’s one of the reasons customers continue returning decade after decade.
For entrepreneurs, the lesson is simple. Standing out doesn’t always require inventing an entirely new product. Sometimes success comes from combining familiar ideas in a way that delivers more value than anyone else.
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Sources:
- Del Taco – Company History
- Del Taco – Menu
- Del Taco Franchise – About Del Taco
- Del Taco Franchise Opportunities
- Restaurant Business – Del Taco News & Analysis
- QSR Magazine – Del Taco Coverage
- Nation’s Restaurant News – Del Taco Coverage
- Entrepreneur – Del Taco Franchise Profile
- Technomic – Restaurant Industry Insights
- Statista – U.S. Quick-Service Restaurant Industry Statistics
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