Del Taco Retains The Cypress Group to Lead Refranchising of 4 Western Markets

Lake Forest, Calif. — Del Taco Restaurants, Inc., the second largest Mexican-American quick-service restaurant chain by units in the United States, 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 summer 2020 and is planned to help shift company ownership to approximately 45% 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.

“We are excited to be launching these opportunities to the franchise M&A marketplace through our partnership with The Cypress Group,” says John D. Cappasola, Jr., president and chief executive officer of Del Taco. “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.”

Founded in 1964, today Del Taco serves more than 3 million guests each week at its 580 restaurants across 14 states. For more information, visit www.deltaco.com. To read Retail & Restaurant Facility Business magazine’s recent cover story on Del Taco, click here.

 

SOURCE: Del Taco

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