re: What am I profiting yearly after opening up a franchise of Del Taco?

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I once worked for a Pizza Hut Franchise who owned 185 locations. Plenty of sense...

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This is the key to making big money in restaurant franchises, those guys who really make piles of money usually have multiple locations sitting on some premium real estate.

Also a lot of people think some franchise owners make huge money. I have a neighbor who owns a very successful Chic Fil A franchise in Tampa. The place is fricking busy and he works like a Hebrew slave. I cant tell you the last time he took vacation for more than 2-3 days. He confided that his annual salary is about $150K and that his store does greater than $3 million in sales each year. This is good money but given the hours he works and the headaches even he wonders if its worth it from time to time.

If he's making $150K I can only imagine what a smaller or lesser known franchise makes.

I'd talk to the Raising Cane's franchise dept and see about getting one here in CA. They'd make a killing.

Chick Fi La's are a little different though. They take about 65% of you're profit. Most other places only take like 10%.. But Chick Fila pays to build and rent the place while the other places don't.

At least I think that's what I've read about them

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I'm considering opening up a Del Taco, but I need to know the profit I'll be making before hand.

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do you have restaurant exp or is it your first franchise?

If making a quick return with little investment is the priority I would look into cleaning services like Jani-King or the like. They make a good return. I know a guy who just opened his seventh commercial cleaning store and he started out with barely anything.


As far as Del Taco, it does good, but unless your area is great and ready for it your ROI may not be what you want.

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Let's see. The business climate is super tough. Profits are down. The price of labor is increasing. Fixed costs are increasing, Food costs are increasing. Regulations are driving up costs. I got it ! I'll open a business where I pay 4-8% of my gross sales right of the top to a third party! Brilliant! Why didn't I think of this earlier!

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A down economy is the perfect time to open up a business. Why not take your lumps and pay your dues when even your competition is hurting?

Why not have a fully operational death star ready and running when the economy is full steam ahead?

All of that said... there are a million things to be concerned about with franchises. It doesn't take a lot of google searching to see how many different things are out of your control and can go wrong.

$9.75/hr at McDonalds

a few thoughts

1. steak and shake sucks balls. ive never met a soul who has eaten there

2. taco joints are the new thing and there is now one on every corner. del taco is nothing special.

3. just open a subway or firehouse subs. sandwiches will never go away.

4. I know a guy who bought a Twin Peaks. said he makes 40% margin on all food and drinks which is unheard of. made his investment back in 18 months and freaking rakes in the dough

Right now in offices all across America there are struggling franchisors , strapped for cash, figuring out new ways to entice franchisees, to write six figure checks to keep their sinking ships afloat for another year. People have no idea how essentially Ponzi-schemish the whole industry is. And the fact that 20 "good" franchises spawn 200 "bad" franchises.

Unimaginative people are seduced by the idea that "hey why would everybody invest if they weren't making money", completely oblivious to the risk.

If you can't afford to lose your entire investment AND the time you invest , you should not even consider it.