Starting Your Own Taco Bell Franchise

Taco Taco Taco! 

So my interest in Taco Bell is derived from a long obsession with their chicken quesadillas, but it doesn’t just stop there!

I genuinely love Taco Bell. I love the food, the service (it’s probably only good because I’m the Mayor), and their amazing value menu, with my usual order, the Meal Deal #4 (no beans).

Anyways, Humble Timothy and I have spent hours talking about how someday we can go to work for ourselves.  One of the few methods I’m comfortable with is opening a franchise, but for what?

Obviously I love Taco Bell and their product, regardless of what percentage of meat is in their “taco filler,” but do I really want to try and open a Taco Bell franchise?

The Taco Bell Brand

Taco Bell has quickly become an American tradition by offering affordable Mexican cuisine to the masses. Taco Bell is the largest Mexican “Fast Food” restaurant chain in the world, with 70% market share, and serving over 35 million Taco Bell Fans each week.

Taco Bell serves more than 2 billion consumers each year in nearly 6,000 restaurants across the United States. In 2005, Taco Bell generated sales of $1.8 billion in company restaurants, but more impressive is the $4.4 billion generated in franchise restaurants. More than 80% of Taco Bell restaurants are owned and operated by independent franchisees.

Taco Bell Franchise Costs

Getting Started:

Yum! makes sure that it’s franchisee applicants have the proper funding, before being approved.  Requirements include a $1 million Net worth and $360,000 cash liquidity. After franchise and start-up costs, total investment will range from $1.2 to $1.7 million.

  • Net worth requirement:$1,000,000
  • Cash liquidity requirement:$360,000
  • Total Investment: $1,200,000 – $1,700,000

Additional Costs:

So far we’ve only discussed the initial franchise investments, however there are still several other costs future franchisees should consider, including land or leasing costs and employee wages.

  • Land and leasing costs: Prices are dependent on the location you intend on opening your restaurant.
  • Staff wages: The typical Taco Bell restaurant employs around 25 workers to run the restaurant.

You can estimate staff wages by determining the average you pay amongst your employees and multiplying that by the number of weekly hours they’ll work.This may get confusing so let me walk you through estimating wages.

You’ll have 25 employees, both part-time and full-time, working as cooks, cashiers, managers, and assistant managers. Imagine the average wage of all your employees is $10 per hour. Since you have both part-time and full-time employees, we average that each one of your 25 employees will work 25 hours weekly. That means you would roughly pay out $25,000 in wages monthly.

Multibranding: The Power of Two

Finally!  Everyone can go to one restaurant and be happy!  It’s likely that you’ve also seen Taco Bell locations that are joined with another Yum! brand.  Here are some of the addition Yum! brands that are available for franchising:

  • Taco Bell
  • A&W
  • Kentucky Fried Chicken
  • Long John Silver’s
  • Pizza Hut
  • Wing Street

The Verdict

The verdict is simple: Humble Timothy and I are just not ready to be opening a franchise anytime too soon, after all, being Mayor of Humbleville is all the work I need right now.

Do you own a franchise or have ever considered starting one up?  If so, what would it be?  Let us know!