Del Taco Restaurants, Inc., (NASDAQ: TACO) yesterday announced the refranchising of all eight company-operated restaurants in the Reno, NV market to existing franchisee Mark Miller of 3 Brothers Restaurants. Related to this refranchising agreement, Mr. Miller has also committed to develop ten additional Del Taco restaurants over the next seven years, including six in the Yakima and Spokane, WA markets and four across his current geographic operating area.
John D. Cappasola, Jr., President and Chief Executive Officer of Del Taco, commented, “We are pleased to have completed this refranchising transaction with a high quality franchisee like Mark and to have secured a development commitment from him for an additional 10 restaurants. 3 Brothers is an experienced and proven operator and developer, having already opened four Del Taco restaurants thus far in 2019. Mark has a strong commitment to the Del Taco brand and we look forward to working together towards our mutual success for many years to come.”
Del Taco is optimizing its restaurant portfolio to help stimulate growth in new restaurants, primarily through franchise development, and expects to refranchise two additional markets by the end of the first quarter of 2020.