QSR Magazine: Why Del Taco is Thriving in Fast Food's Value War

Del Taco has had five consecutive years of growth, with 4.3 and 4 percent growth in 2017 in two separate categories. QSR Magazine noted that President and chief executive officer John D. Cappasola, Jr. thinks the surge is due to the taco franchise' pricing approach. 

The brand introduced Queso Blanco to its menu in 2017 and was able to achieve more than 6 percent mix in the last quarter. This menu addition lifted traffic due to new menu combinations available to customers at low and mid-tier pricing level. 

“I’m just scratching the surface at this point, product, news, across the barbell is not something we’re going to fall short on,” Cappasola said when asked about how Del Taco is bridging the gap in its strategy. “It’s a key strategic pillar for us and our marketing strategy. And we really set our teams up to constantly innovate. We just feel like, right now, if you look at our menu strategy, in totality, where we have the biggest opportunity to grow, is in that mid-tier area of the menu.”

The brand has big plans for 2018, including operational improvements, an ad campaign focused on fresh prep, a continued focus on third-party delivery services and an app to build customer relations. The franchise opened 23 restaurants in 2017 and expects to open 25-28 in 2018. 

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Photo courtesy of Del Taco.