What factors can affect food and paper costs for a Del Taco restaurant?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
- Food and paper costs can vary depending on the prevailing costs in the area of the country in which (5) your Restaurant operates and the specific shipping costs involved in getting the products to your Restaurant.
| Table 19-2-A Freestanding Company-Owned Restaurant Average Operating Results (Fiscal Years 2024, 2023 and 2022) | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | Annualized 2022 | ||||
| Dollars | Percent of Sales | Dollars | Percent of Sales | Dollars | Percent of Sales | |
| Sales (2) | $1,804,158 | 100.0% | $1,745,657 | 100.0% | $1,677,032 | 100.0% |
| Food & Paper (5) | $462,413 | 25.6% | $484,701 | 27.8% | $477,201 | 28.5% |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 47–54)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, food and paper costs for a Del Taco restaurant can fluctuate based on several factors. The FDD specifies that these costs are sensitive to the "prevailing costs in the area of the country in which your Restaurant operates." This means that franchisees in different regions may experience varying expenses for the same food and paper products due to local market conditions. For example, a Del Taco in California might have different costs than one in Oklahoma due to regional pricing differences.
Another factor influencing food and paper costs is "the specific shipping costs involved in getting the products to your Restaurant." This highlights the importance of supply chain logistics and transportation expenses. The further a restaurant is from its suppliers or distribution centers, the higher its shipping costs may be, which directly impacts the overall cost of goods sold. Efficient supply chain management and strategic location choices can help mitigate these expenses.
In 2024, the average food and paper costs for freestanding company-owned Del Taco restaurants were $462,413, representing 25.6% of sales. In 2023, these costs averaged $484,701, or 27.8% of sales, and in 2022, they were $477,201, or 28.5% of sales. These figures demonstrate the significant impact that food and paper costs have on a Del Taco restaurant's financial performance, and how fluctuations in these costs can affect profitability. Prospective franchisees should carefully consider these factors and conduct thorough market research to estimate their potential food and paper costs accurately.