What is included in the 'Controllable Profit' calculation for a Del Taco restaurant?

According to Del Taco's 2025 Franchise Disclosure Document, Controllable Profit is calculated by subtracting six line items from sales. These six line items are food and paper costs, labor costs, benefits costs, utilities costs, repairs and supplies costs, and miscellaneous costs.

These costs are considered 'controllable' because they are directly influenced by the restaurant's management and operations. Food and paper costs depend on inventory management and supplier negotiations. Labor costs are affected by staffing levels and wage rates. Benefits costs are determined by the employer and payroll taxes, vacation, health insurance, and restaurant manager bonuses. Utilities and repair and maintenance costs can vary with sales volume and depend on the region of the country in which the Del Taco restaurant operates. Miscellaneous costs include local marketing fees, card processing fees, and daily cash over or short expenses for the restaurant.

Understanding the components of Controllable Profit is crucial for prospective Del Taco franchisees. By carefully managing these controllable expenses, franchisees can directly impact their restaurant's profitability. However, it's important to note that Controllable Profit does not include all expenses. Advertising costs, local advertising costs, insurance costs, imputed royalty, rent, and real estate taxes are not included in the calculation of controllable profit.