Del Taco recovery plan targets menu and loyalty growth

Just two and a half months after being sold, Del Taco has unveiled a new comeback plan, focused primarily on reinvigorating the menu and reengaging customers.

The strategy, called “Project Sunrise,” aims to turn around the business in 18 months by improving food and beverage quality, driving innovation to build average check, expanding catering, and strengthening the loyalty program.

The framework falls under new owner Yadav Enterprises, which purchased Del Taco from Jack in the Box for $115 million. Yadav was a Del Taco franchisee before the acquisition.

“Project Sunrise is about getting back to what makes Del Taco special and positioning the brand for future growth with a roadmap that gives us the focus and accountability to deliver to guests a new brand promise, while strengthening our foundation and creating meaningful momentum for a successful and sustainable future,” Yadav Enterprises CEO Anil Yadav said in a statement.

One example is Del Taco’s immediate return to its Classic Burrito line, including original preparation methods, open-end burrito fold, and product names. The move was in response to negative feedback regarding changes to menu items and ingredients over the past couple of years.

The chain is bringing back the Del Combo Burrito (formerly Combo Beef & Bean), Del Classic Chicken Burrito (formerly Grilled Chicken), Del Beef Burrito (formerly Beef & Cheddar), and 8 Layer Veggie Burrito. Each one weighs more than half a pound.

To encourage customer trial, Del Taco is offering rewards members a $6 Classic Burrito, small fries, and small drink combo until March 15.

The brand also listened to guests by bringing back the fan-favorite Jack’d Up menu, featuring the Spicy Jack Quesadilla, Spicy Jack Chicken Quesadilla, and Jack’d Up Bean, Rice & Cheese Burrito.

“We’ve listened closely to our guests, and the message is clear: deliver the food they know and love with the consistency and quality and value they expect; simplify where it matters and bring bold innovation that excites,” chief transformation officer Ulyses Camacho said in a statement.

Project Sunrise was formalized after months of planning across marketing, R&D, operations, and sourcing, Yadav Enterprises said in a news release.

Prior to announcing the transformation plan, Yadav Enterprises promoted Camacho to chief transformation officer and Noah Chillingworth to CMO, and brought back Ellen Sasada as VP of supply chain, food safety, and quality assurance.

Yadav Enterprises, with 300-plus franchise restaurants, is the biggest operator for Jack in the Box, Denny’s, and TGI Fridays. It also serves as franchisor for 150-unit Taco Cabana, which it bought for $85 million in 2021, and 90-unit Nick the Greek, which was acquired in 2022.

During its fiscal fourth quarter (ending September 28), Del Taco’s same-store sales fell 3.9 percent, comprising a 4.2 percent decline for franchise locations and a 3.1 percent decrease for company units. The performance was driven by drops in transactions and mix, partially offset by menu price increases. Systemwide sales in Q4 decreased 5.4 percent. In fiscal 2025, comps declined 3.7 percent.

The brand finished its fiscal year with 576 locations (444 franchises and 132 corporate restaurants) after opening 14 restaurants and closing 32. Del Taco is a lot more franchise-heavy than it used to be. When Jack in the Box bought it for $585 million in 2022, it had 297 corporate units and 306 franchises.

Yadav Enterprises wants to return to positive net growth. Del Taco plans to open seven restaurants in 2026, including two in South Carolina. There are agreements in place to open 10 locations in Indiana and five outlets in Kentucky. The brand is also exploring the possibility of reopening recently shuttered restaurants in Georgia.