Franchisor Stories
Franchise Opportunity Deep Dive: District Taco offers a scalable fast-casual Mexican franchise with Yucatán-inspired cuisine, strong brand support and multi-unit growth potential.
District Taco is a fast-casual Mexican restaurant chain specializing in Yucatán-inspired cuisine. The menu features customizable options like tacos, burritos, bowls and salads, all crafted from fresh ingredients. With a commitment to authenticity, District Taco offers vegetarian, vegan and gluten-free choices to cater to diverse dietary preferences.
District Taco was founded in 2009 by Osiris Hoil and his neighbor, Marc Wallace, in Rosslyn, Virginia. After Hoil was laid off during the 2008 economic downturn, the duo launched a food cart serving breakfast tacos, drawing from Hoil's family recipes from Yucatán, Mexico. Their success led to the opening of the first brick-and-mortar location in Arlington, Virginia, in 2010. District Taco began franchising in 2021, expanding its presence across Washington, D.C., Virginia, Maryland, Pennsylvania and New Jersey.
Mission: District Taco's mission is to share the best of the Yucatán with every guest by serving bold flavors inspired by their Mexican roots. They prepare food traditionally — fresh, by hand and made to order — ensuring quality and authenticity in every dish.
Vision: The company's vision is encapsulated in the acronym "Órale," a Mexican term conveying approval or encouragement. This stands for Original, Responsible, Authentic, Local and Enthusiastic, reflecting the brand’s commitment to innovation, integrity, community involvement and passion for uniting people through a shared love of food.
District Taco distinguishes itself in the fast-casual Mexican restaurant sector through several unique selling points:
District Taco is actively growing its franchise network, with plans to expand from New York to South Carolina and westward to Ohio, Tennessee and Kentucky.
While District Taco does not explicitly list available territories on its website, the brand does encourage interested individuals to submit a new franchise application specifying their desired state and ZIP code.
Initial Costs: The estimated initial investment for opening a District Taco franchise ranges between $733,750 and $1,457,750. The brand’s 2024 Franchise Disclosure Document (FDD) breaks these costs down as follows:
| Type of Expenditure | Min | Max |
| Initial Franchise Fee | $25,000 | $25,000 |
| Leasehold Improvements | $500,000 | $850,000 |
| Architect/Engineer Costs | $20,000 | $30,000 |
| Onsite Evaluations | $0 | $500 |
| Restaurant Assets | $165,000 | $300,000 |
| Signage | $5,000 | $25,000 |
| Rent (3 Months) | $0 | $75,000 |
| Security Deposit | $0 | $50,000 |
| Opening Inventory & Supplies | $5,000 | $20,000 |
| Office & Business Supplies | $1,000 | $5,000 |
| Grand Opening Marketing | $5,000 | $5,000 |
| Training Expenses | $6,000 | $14,000 |
| Misc. Opening Costs | $0 | $1,000 |
| Utility Deposits | $0 | $10,000 |
| Business Licenses (inc. Liquor License) | $1,000 | $20,000 |
| Insurance | $750 | $2,250 |
| Additional Funds (3 Months) | $0 | $25,000 |
Initial Franchise Fee: The franchise fee for developing a single District Taco restaurant is $25,000, which is payable upon signing the Franchise Agreement.
Ongoing Fees: According to the 2024 FDD, District Taco franchisees are responsible for the following ongoing payments and fees:
| Type of Fee | Amount |
| Royalty Fee | 6% of gross sales/week |
| Innovation Fund Contribution | 2% of gross sales/week |
| Website/Mobile App Fees | $100/month |
| Loyalty/Gift Card Platform | $200/month |
| Ongoing Training Fees | $0 - $5,000/year |
ROI Potential: According to the 2024 FDD, the 11 company-owned District Taco restaurants operating in 2023 reported the following earnings:
All Markets | Urban Markets | Suburban Markets | |
| # of Restaurants | 11 | 5 | 6 |
| Average Gross Sales | $1,932,704 | $2,047,067 | $1,837,402 |
| Highest Gross Sales | $3,146,534 | $3,146,534 | $2,467,591 |
| Lowest Gross Sales | $1,016,816 | $1,053,791 | $1,016,816 |
| Median Gross Sales | $1,985,813 | $1,985,813 | $1,938,091 |
Franchisees and their teams undergo extensive training that covers all aspects of restaurant operations. This training begins during the onboarding phase and is designed to equip franchisees with the knowledge and skills necessary to maintain District Taco's high standards of food quality and customer service.
District Taco's franchise support team assists franchisees throughout the development process, including site selection, restaurant design and construction, and technology onboarding. This comprehensive support ensures that franchisees are well-prepared to operate their restaurants effectively and uphold the brand's reputation.
District Taco equips its franchisees with a comprehensive suite of advanced technology systems designed to streamline operations, enhance customer experience and drive profitability:
Ideal candidates are multi-unit operators or senior restaurant professionals with experience managing five or more restaurants. They should be motivated to grow with an emerging franchise brand, contributing to its expansions and success.
District Taco does not specify whether semi-absentee ownership is an option. However, the brand’s emphasis on candidates with substantial operational experience indicates that franchisees are expected to commit significant time and resources to ensure the successful management and growth of their District Taco locations.
District Taco offers financial assistance to franchisees through in-house financing options that cover the franchise fee. Additionally, the company has established relationships with third-party financing sources to assist with various startup expenses, including equipment, inventory, accounts receivable and payroll.
Hicham El Abbassi and Isalmou Boussa immigrated from Morocco to become American entrepreneurs with District Taco through their company, DT NOVA. They now own 12 District Taco restaurants and recently received the IFA Franchisee of the Year award.
The fast-casual Mexican restaurant sector has experienced significant growth in recent years, reflecting broader trends within the fast-casual dining industry. In the U.S., the Mexican restaurants market was valued at approximately $72.5 billion in 2024 and is projected to reach $113.6 billion by 2033, growing at a compound annual growth rate (CAGR) of about 5.2% from 2025 to 2033.
This growth is part of a larger expansion within the global fast-casual restaurants market, which is estimated to increase by $302.5 billion from 2024 to 2028, at a CAGR of 15.2%. The demand for menu innovation and customization, along with the rise of chef-driven fast-casual franchises, are key drivers of this trend.
Major players in the fast-casual Mexican restaurant sector have contributed to this upward trajectory. For instance, Chipotle Mexican Grill reported a 14.1% year-over-year increase in total revenue and a 7.0% rise in comparable restaurant sales in the first quarter of 2024. Additionally, Chipotle opened 304 new restaurants in the 2024 fiscal year, bringing its total to 3,726 locations, with plans to nearly double its North American presence to 7,000 by the end of the decade.
The sector's expansion is further supported by the growing popularity of Mexican cuisine in the United States. Approximately 10% of U.S. restaurants serve Mexican food, with 22% of these establishments classified as fast-food restaurants. This widespread consumer preference underscores the sector's robust growth and its potential for continued expansion in the coming years.
District Taco differentiates itself in the fast-casual Mexican restaurant sector through its authentic Yucatán-inspired cuisine, commitment to fresh and made-from-scratch ingredients, and inclusive menu options, including vegetarian, vegan and gluten-free choices. The brand also stands out for its strong community engagement, innovative technology-driven ordering systems, and emphasis on sustainability and responsible sourcing. Additionally, its franchise model is designed for multi-unit operators, ensuring streamlined expansion and operational efficiency.
District Taco’s primary competitors in the fast-casual Mexican restaurant sector include:
Embarking on a District Taco franchise involves a structured process designed to ensure mutual compatibility and set the foundation for a successful partnership.
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