As many restaurant chains did in the thick of COVID-19, Del Taco paused company development. It resumed in Q3 as business metrics recovered and stabilized, with same-store sales rising 4.1 percent, year-over-year, and revenue inching upward 0.5 percent to $120.8 million.
CEO John Cappasola said the 596-unit brand (295 corporate stores and 301 franchised) expected to infill core Western markets and seed emerging ones, all with the goal of stimulating long-term franchise growth, including plans to enter Orlando, Florida, in 2021.
Yet optimism wasn’t tied solely to boosted results relative to COVID lows. Cappasola was optimistic favorable dynamics could greet the brand not in spite of the pandemic, but because of it. Namely, additional franchise interest and drive-thru concepts, as well as increased real estate availability. Operators recognized the extra levers now available: Del Taco lifted its app user base 38 percent to 1.2 million people in less than a year. It also pushed delivery mix to more than 6 percent of systemwide sales and saw company-operated delivery check average stand at 1.85 times its at-restaurant average.
While these trends materialized, Del Taco plotted. In October, the company told investors it was in the final stages of developing a new restaurant prototype “to help capitalize on these opportunities.”
“These efforts are expected to help enhance our targeted new unit return profile and expand our real estate access,” Cappasola said. “This will allow us to be opportunistic in regards to real estate and conversion opportunities as it includes a smaller footprint drive-thru-only model to accommodate smaller sites. The new prototype will include a modernized design, improved functionality, and other operational enhancements that will refresh the brand and position us well for growth in the future.”
On Tuesday, Del Taco unveiled the new design, labeled “Fresh Flex.” It expands real estate potential and helps lower net investment costs, the company said, as well as provide “ultimate convenience for guests and [optimize] operational efficiencies.”
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“Continuing to adapt and evolve is the lynchpin for Del Taco to remain ahead of the curve in the restaurant industry,” Cappasola said in a statement. “Our new prototype solidifies our relationships with new and longstanding fans by offering them the most efficient, convenient and enjoyable environment possible. Equally as powerful, ‘Fresh Flex’ propels broader growth opportunities.”
The unit focuses on three pillars—restaurant accessibility, speed of service, and brand transparency.
There will be contactless third-party delivery pickup stations, double drive-thru lands dedicated to mobile orders or delivery driver pickups, and dedicated parking lot areas for those who want to park, eat, and go. The kitchen was also redesigned to optimize labor. Del Taco introduced a new workforce management system recently that allows operators to “make sure they are putting the right feet and hours on the floor to provide a good guest experience,” CFO Steve Brake said earlier.
Del Taco collaborated with hospitality design firm MY Studio ID on the prototype. The exterior and interior is redesigned, too, with a focus on capturing “Fresh as Del” positioning. The building features back-lit towers and a vibrant color palette. Inside, built-in freshness coolers provide a transparent display of Del Taco’s ingredients, prepared daily. Additional visibility extends to a working kitchen where guests can see employees in action—slicing avocados, grating cheddar cheese, grilling chicken and carne asada, and so on.
Del Taco said the new store design will unfold via multiple buildout options to maximize growth through a “Menu of Venues” strategy the company hinted at previously. “Fresh Flex” will vary in size from 1,200 to 2,400 square feet. This includes small footprint drive-thru only models, drive-thru endcaps, conversions, and freestanding sites. The drive-thru only version is listed at less than 1,200 square feet.
The Link LonkJanuary 06, 2021 at 02:14AM
https://www.qsrmagazine.com/fast-food/del-taco-drops-fresh-flex-prototype-designed-grow
Del Taco Drops 'Fresh Flex' Prototype Designed to Grow - QSR magazine
https://news.google.com/search?q=fresh&hl=en-US&gl=US&ceid=US:en
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