Iconic Brand’s Focus on Quality and Value is Winning Guests Over
Lake Forest, California (October 18, 2016) –
The combined result of a solid brand strategy and its best-selling product
ever, Del Taco Restaurants, Inc. (NASDAQ: TACO) has posted yet another quarter
of strong growth. Despite
the widely reported industry slowdown, the company announced system wide same store sales (SSS) were up
6.7% for the third quarter of 2016. This marks the system’s 12th consecutive
quarter of positive SSS and its 17th consecutive among company-operated
restaurants. In addition, Del Taco’s Guest Experience Measurement (GEM) results
show that guests are more satisfied with the product, service and overall experience
which has led to increases in same store transactions during the third quarter.
Del
Taco credits its ongoing success to the brand’s strategic repositioning efforts
to further define its unique QSR+ model. The company continues to differentiate
from competitors by heightening focus on its QSR+ attributes, such as Del
Taco’s unique ability to offer guests the quality and freshness of fast casual
restaurants with the value and convenience of a drive thru. The brand’s Fresh
Combined Solutions strategy is designed to generate great guest experiences
through a series of operations and marketing initiatives while increasing appeal
with a broader set of limited service occasions. The strategy is made up of a
variety of brand catalysts; from new equipment and enhanced training to the
launch of the consumer-facing UnFreshing Believable 2.0 campaign. The brand refresh
campaign highlights Del Taco’s dichotomous menu of both Mexican and American favorites such as burritos and
fries, along with the use of quality ingredients and fresh preparation in every
restaurant’s working kitchen served at category leading prices.
UnFreshing
Believable 2.0 kicked off in June 2016 with the launch of The Del Taco, a
bigger, better-tasting, crunchy beef taco inspired by the 1964 original and
deemed worthy of the brand’s name. With more than 11 million sold, The Del Taco
broke all-time sales records to become the company’s most successful product
introduction to date. The overwhelming success of The Del Taco, as demonstrated
by Del Taco’s third quarter earnings, speaks volumes as to what today’s
consumers are really craving, and is driving record business in what has
otherwise been a sluggish sales period for the entire QSR category.
“Del
Taco is on a journey to define QSR+ and we’re excited about the momentum that
was created by our UnFreshing Believable 2.0 campaign and the great success of
The Del Taco in the third quarter,” said
John Cappasola, executive vice
president and chief brand officer. “We’re focused on quality and freshness when
developing craveable, menu items that guests can enjoy time and time again,
like a delicious crunchy beef taco; and based on the results of our now
best-selling product ever, it’s clear that our approach is winning consumers
over.”
Continuing
to solidify the brand’s QSR+ positioning and expand upon its unique barbell
menu approach, on October 27, Del Taco will roll out its new premium menu
platform called Platos, a more authentic Mexican plated meal which consists of
chips and salsa, rice and beans, and an entrée. A complementary follow up to
The Del Taco, Platos is an occasion expansion strategy designed to help grow
traffic during the dinner daypart and create new reasons for guests to visit
Del Taco.
In addition to innovative menu items and platforms, the UnFreshing Believable 2.0 campaign encompasses the
following initiatives; some currently underway and others that will be
implemented throughout the next year:
- Redesigned In-Store Signage, Menu Panels and Packaging, including cups
and bags, feature a fresh, new look and feel.
- New
Team Uniforms are more comfortable and better reflect the colorful
and contemporary UnFreshing Believable 2.0 style.
- New Advertising Campaign dramatizes the unique dichotomies that
only Del Taco can deliver such as fresh preparation paired with category
leading value, and tacos and burritos paired with crinkle cut fries.
- More Freshness
Coolers in restaurants display fresh avocados,
chopped pico de gallo, 40 lb. blocks of cheddar cheese and other freshly
prepared ingredients.
“The UnFreshing Believable 2.0 campaign
highlights the traits that already make Del Taco stand out, such as fresh prep coupled
with category-leading everyday value, which is strongly resonating with guests as
we continue to raise the bar in the QSR segment,” Cappasola continued. “Along with
record sales, we’re extremely pleased to see our quality and value scores
increase significantly, which further demonstrates the success of our Fresh Combined
Solutions Strategy and brand refresh.”
For additional details on Del Taco’s third
quarter earnings, visit http://investor.deltaco.com/investor-overview/default.aspx.
About
Del Taco Restaurants, Inc.
Del
Taco (NASDAQ: TACO) offers a unique variety of both Mexican and American
favorites such as burritos and fries, prepared fresh in every restaurant’s
working kitchen with the value and convenience of a drive thru. All menu
items taste better because they are made with quality ingredients like freshly
grated cheddar, hand-chopped pico de gallo, sliced avocado, slow-cooked beans
made from scratch, and fresh-grilled marinated chicken and steak. The
brand’s UnFreshing Believable® campaign further communicates Del Taco’s
commitment to provide guests with the best quality and value for their money.
Founded in 1964, today Del Taco serves more than three million guests each week
at its nearly 550 restaurants across 16 states. For more information,
visit www.deltaco.com.
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Del
Taco Media Contact:
Brenna O’Leary
Powerhouse Public
Relations , LLC
(949) 261-2216; brenna@powrhousepr.com