Del Taco’s new owner is embarking on an 18-month business refresh that this year will bring back some of the chain’s original menu techniques.
Yadav Enterprises Inc., a multi-unit franchise operator based in Northern California, acquired the Lake Forest fast food chain from Jack in the Box for approximately $119 million last December (Nasdaq: JACK).
The San Diego-based burger chain offloaded Del Taco to simplify its business model and reduce debt after struggling to generate growth at the business. Jack in the Box, which recently tapped Irvine-based Restaurant365 for its inventory services, initially bought Del Taco for approximately $585 million in 2022.
Since December, Yadav has created an improvement plan dubbed Project Sunrise “to reignite growth” at Del Taco with strategies such as addressing customer complaints about menu changes made under Jack in the Box the past two years.
As a result, the parent organization has decided to return Del Taco’s classic burrito line to the original preparation methods and product names.
The Del Combo Burrito, Del Classic Chicken Burrito and Del Beef Burrito have reverted to their original names and will be prepared with Del Taco’s “signature” open-end burrito fold.
“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,” Ulyses Camacho, Del Taco’s chief transformation officer, said in a statement.
Camacho was appointed to his newly created role in January. He is also president and chief operating officer of Taco Cabana, another restaurant chain under Yadav’s umbrella.
Yadav recruited Del Taco’s former Vice President of Marketing, Noah Chillingworth, last month and appointed him as chief marketing officer. He previously worked at Del Taco from 2009 to 2024.
“Project Sunrise gives us the structure to move simultaneously with urgency and discipline,” Chillingworth said.
“We’re taking action based on the feedback of our guests and implementing product and ingredient improvements for core items, better leveraging our five dayparts and expanding into new territories with innovation,” he added.
An Updated Loyalty Strategy
The turnaround plan also calls for examining ways to increase average check, expanding the catering program and updating its loyalty strategy.
Del Taco is Orange County’s sixth-largest restaurant chain with systemwide sales of $959 million for the 12 months ended June 2025, down 2% from a year ago, according to Business Journal data.
Jack in the Box’s original plan for Del Taco was to refranchise or convert company-owned stores into franchises. At the time of the purchase, Del Taco had about 600 restaurants.
It now counts roughly 550 restaurants in the U.S. with franchised locations making up 80% of the portfolio. Del Taco expects to open seven new locations in 2026.
Yadav is a Fremont-based operator of more than 310 franchise restaurants, including Jack in the Box, TGI Fridays, Taco Cabana and Nick the Greek.
Yadav said it’s “actively exploring” to reopen recently closed Del Taco restaurants in Georgia.
“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,” Chief Executive Anil Yadav said.
