Dive Brief:
- Del Taco launched an 18-month roadmap to turn around the company, which has experienced several quarters of same-store sales declines.
- The plan, called Project Sunrise, focuses on consistency and quality of core menu, bold menu innovation that drive trial and incremental growth, expansion of catering and a more impactful loyalty program, according to a press release.
- The strategy is being deployed nearly three months after Yadav Enterprise completed its buyout of the chain from Jack in the Box.
Dive Insight:
Prior to the launch of the plan, Del Taco hired several executives to bulk up/refresh its C-suite. In January, the company appointed Ulyses Camacho as chief transformation officer and Noah Chillingworth as CMO. Ellen Sasada also returned to the chain as vice president of supply chain, food safety and quality assurance.
Executives have spent months planning and aligning Del Taco’s marketing, research and development, operations and sourcing to ensure oversight of its menu strategy, new item cadence and performance, the press release said.
Project Sunrise was created after collecting guest feedback. The initiative targets items that have received negative comments related to ingredient and product changes done over the last two years.
“Project Sunrise gives us the structure to move simultaneously with urgency and discipline,” Chillingworth said in a statement. “We’re taking action based on the feedback of our guests and implementing product and ingredient improvements for core items, better leveraging our five dayparts and expanding into new territories with innovation.”
Del Taco will bring back its Classic Burrito platform using original preparation methods and product names, along with a Del Taco open-end burrito fold. Each burrito will weigh over half a pound.
That lineup consists of the Del Combo Burrito (formerly Combo Beef & Bean), Del Classic Chicken Burrito (formerly Grilled Chicken), Del Beef Burrito (formerly Beef & Cheddar) and the 8 Layer Veggie Burrito. To celebrate the return of this menu, Del Taco will offer an exclusive combo for Del Yeah! Members with a Classic Burrito, small fries and small drink for $6 through March 15.
Del Taco also brought back its Jack’d Up menu offering spicy jack cheese with the launch of Spicy Jack Quesadilla, Spicy Jack Chicken Quesadilla and Jack’d Up Bean, Rice & Cheese Burrito.
Del Taco added that it is also working to continue unit growth momentum.
During fiscal 2025, the chain closed 32 restaurants, but opened 14. This calendar year, it expects to open seven new locations , including two in South Carolina. Future expansion will include opening 10 locations in Indiana and five locations in Kentucky. Del Taco said it also is looking for ways to reopen recently closed restaurants in Georgia that were impacted by a franchisee bankruptcy.
