IRVINE, Calif. (Diya TV) — Del Taco is launching a major comeback strategy just months after changing ownership. The Mexican-inspired fast-food chain plans to refresh its menu, improve food quality, and reconnect with customers through a new transformation plan called Project Sunrise.
The initiative follows the brand’s recent sale to Yadav Enterprises for $115 million. The company aims to restore sales growth and strengthen customer loyalty over the next 18 months. Executives say the plan will focus on improving menu items, boosting innovation, and increasing customer engagement. Leaders also want to expand catering services and strengthen the restaurant’s rewards program.
Project Sunrise marks the first major move by Del Taco under its new ownership. CEO Anil Yadav said the goal is to return the brand to its core strengths.
“Project Sunrise is about getting back to what makes Del Taco special,” Yadav said in a statement to QSR Magazine. “We want to deliver a stronger brand promise while building a foundation for long-term growth.”
Yadav Enterprises previously operated Del Taco restaurants as a franchisee. The company acquired the chain earlier this year from Jack in the Box. The parent company had purchased Del Taco in 2022 for $585 million. Now, the new owner plans to streamline operations and bring back menu items that longtime customers love.
One of the biggest changes involves the return of Del Taco’s Classic Burrito line. The company revived the original preparation style and the traditional open-end burrito fold. Executives decided after listening to customer feedback. Many guests expressed frustration with recent changes to menu items and ingredients. The returning burritos include the Del Combo Burrito, Del Classic Chicken Burrito, Del Beef Burrito, and the 8 Layer Veggie Burrito. Each item weighs more than half a pound.
To encourage customers to try the updated menu, Del Taco offered rewards members a special combo. The deal included a Classic Burrito, small fries, and a small drink for $6 through March 15. Company leaders believe the move will help rebuild trust and drive restaurant visits.
Del Taco also restored another popular menu offering: the Jack’d Up menu. The lineup includes the Spicy Jack Quesadilla, Spicy Jack Chicken Quesadilla, and the Jack’d Up Bean, Rice & Cheese Burrito. Chief transformation officer Ulyses Camacho said the brand carefully studied guest feedback before making these changes.
“We’ve listened closely to our guests,” Camacho said in a statement. “They want the food they know and love with consistency, quality, and value.”
The company hopes the combination of familiar menu items and innovations will increase average check sizes and bring customers back more often.
Project Sunrise grew out of months of planning across marketing, research and development, operations, and supply chain teams. To support the strategy, Yadav Enterprises made several leadership moves. The company promoted Camacho to chief transformation officer and named Noah Chillingworth as chief marketing officer. It also rehired Ellen Sasada as vice president of supply chain, food safety, and quality assurance.
Yadav Enterprises operates more than 300 franchise restaurants across several brands. The company also runs locations for Denny’s and TGI Fridays. In addition, the company owns Taco Cabana, which it purchased for $85 million in 2021, and Nick the Greek, acquired in 2022.
Del Taco has faced sales challenges in recent quarters. During the company’s fiscal fourth quarter ending Sept. 28, same-store sales fell 3.9 percent. Franchise locations reported a 4.2 percent drop, while company-owned restaurants saw a 3.1 percent decline. Lower transaction counts and menu mix drove the decrease, though higher menu prices helped offset some losses. Systemwide sales declined 5.4 percent in the quarter. For fiscal 2025, comparable sales dropped 3.7 percent.
The chain ended the year with 576 locations. That total included 444 franchise restaurants and 132 corporate units. The company opened 14 restaurants but closed 32 locations during the year. Del Taco has become more franchise-focused in recent years. When Jack in the Box acquired the brand in 2022, it operated 297 company-owned locations and 306 franchises.
Despite recent challenges, Del Taco plans to return to positive growth. The company expects to open seven restaurants in 2026. Two of those locations will operate in South Carolina. Del Taco also signed agreements to open 10 new restaurants in Indiana and five locations in Kentucky. The brand is exploring options to reopen some recently closed restaurants in Georgia.
