Del Taco

Company History

Del Taco was founded in 1964 in Yermo, California. The business experienced tremendous success in the California market, and a few Western cities. The original trio of owners sold Del Taco to private investors in 1976. This was followed by the 1977 sale of franchising and development rights to W.R. Grace & Company, anywhere stores had not yet been built. W.R. Grace was a chemical company; this influenced their decision to manage Del Taco through a subsidiary. This essentially created two Del Taco corporations. One (Del Taco Inc.) with claims to territory in California. The other (Del Taco Restaurants of Dallas, TX) held claims everywhere else. 

W.R. Grace began to build their first restaurants in 1978. Starting in many locations at once, including Texas. By 1986, W.R. Grace’s Del Tacos began to falter. The company suffered from their divisional differences. They also experienced fierce competition from Taco Bell. During this time the original chain, also began to encounter issues. Including going through multiple ownership changes. In 1992, the W.R. Grace Company decided to sell their remaining Del Taco restaurants to Taco Bell for conversion. This would give full control of the chain back to the original company.

Local History

Being outside of the original franchising area, Texas was under the aforementioned second Del Taco. The company first arrived in Houston in the summer of 1978 with the establishment of a regional office. Being a chemical company at heart, the original HQ was in a quite industrial area at 16720 Hedgecroft Drive. The first location to open would come only a few months later in November. The 1915 Mangum location opened in early November 1978 and was quickly followed by the Richmond and Main location. All restaurants were designed based off a simplified version of the California’s Del Taco buildings.

The original 1915 Mangum location was part of the 80’s wave of closures. It would later become a Hartz’s Chicken Buffet and is now a Frank’s Grill.

It was apparent from the start that Del Taco, knew winning Houston would mean taking on Taco Bell. A relatively established chain in Texas at the time, Taco Bell made their debut in Houston in 1967. Many of the first Del Taco locations were placed near to popular Taco Bell locations. These stores would make up the bulk of the first Del Tacos to open in Houston. The second wave of restaurants hit smaller cities around Houston that lacked a Taco Bell or in some cases even a strong fast food presence. The third wave of growth focused on new developments around the Houston area, and trying to beat Taco Bell to them. 

When choosing new locations, W.R. Grace had good success. Most of their former Del Tacos, are still operating as restaurants some 40 years later. They also took a strong presence in advertising their entry into the market. Such as a “charming” advertising insert provided with newspapers. This strong advertising presence matched with a consistent 2-3 stores opening per month quickly launched Del Taco’s Houston division to over 40 stores. Despite all these efforts, W.R. Grace’s lack of knowledge in operating food service outlets began to show. Especially when pitted against PepsiCo’s (owner of Taco Bell) numerous resources.

The South Houston location, was converted to a Jack in the Box. The exterior remained mostly unchanged until a 2012 remodel. As seen in this 2011 Google Street View Capture, despite a new coat of paint the original terracotta roof tiles were even intact.

One of the first cracks to show was an issue with keeping staff. This seemed to be a problem at most locations, and generally throughout the chain. They had constant classified ads long after expansion had ended. Mostly seeking replacement staff with little details. Specifically, management seemed to be the biggest hole to fill.  The frequency of the for-hire posts would increase closer to the chain’s exit from the Houston market.

During W.R. Grace’s acquisition phase an already established medium size Tex-Mex chain named Taco Villa was acquired. As licensing costs from the original Del Taco grew, the fully owned Taco Villa properties began to find their way into the second Del Taco. The stores were rebranded to look more like Taco Villa locations, with the menu following suit. The brand was used much more outside of the Houston Division, with W. R. Grace only trying to rebrand one restaurant here. The 3030 Cullen location, which was at the time right outside the U of H Campus was rebranded as a Taco Casa, and seemingly remodeled only to shut down shortly after.  I’m not sure if the rebrand was due to poor faith in the Del Taco name, or an attempt to get out of paying licensing fees. However, by this time the two Del Tacos had begun to shift apart in just about every way outside of the shared name. Even the menus had differed due to nature of the licensing agreement. With these cracks beginning to form, it was becoming more difficult to take this piece-meal chain as a serious competitor to Taco Bell. 

While the Del Taco at 4902 Kirby is not the only location still selling Tex-Mex, it’s probably the most famous.

The mid 1980s seemed to be the first major acknowledgement from W.R. Grace that they weren’t quite cut out for the fast food industry. In 1986 W.R. Grace made the original Del Taco, who had now been through a few owners, an offer to purchase their locations outright. This purchase would also include

The locations are sorted first by those within Houston city limits, then by those outside of Houston, but still within the Houston division.

Address
Notes
1915 Mangum Rd Houston, TX 77092November 1978-198? Became Hartz's Chicken by 1993. Now a Frank's Grill
401 Richmond Ave Houston, TX 77002November 1978-1989 Now Shipley's
9204 Bellaire Blvd Houston, TX 77036December 1978-1989 Demolished 2001
914 Federal Rd Houston, TX 77015February 1979-1987 Now EZPawn
917 Edgebrook Dr Houston, TX 77034March 1979-1989 Later China Feast, Now Marco's Seafood
3030 Cullen Blvd Houston, TX 77004July 1979-1987 Converted to Taco Villa; Demolished
4902 Kirby Dr Houston, TX 77098July 1979-1984 Now Goode Co. Taqueria
5929 S Braeswood Blvd Houston, TX 77096July 1979-? Now a Jewish Temple Originally 5919
5522 Bellaire Blvd Houston, TX 77081September 1979-1988 Converted to El Pollo Loco in 1985 and Arby's in 1989. Demolished for McDonald's parking 1991.
4502 W Fuqua St Houston, TX 77045September 1979-1988 Converted to Popeye's. Building Remodeled 2013.*
14510 Memorial Dr Houston, TX 77079September 1979-198? Converted to a Schlotzsky's in 2010. Store #2023^
218 W Greens Rd Houston, TX 7706719??-19?? Demolished*
17388 Hempstead Hwy Houston, TX 770411980-19?? Demolished for a McDonald's*
9990 Bissonnet St, Houston, TX 77036April 1980-1989 Now a Brenda's Taqueria* Originally 10100
9120 S Main St Houston, TX 77025April 1980-198? Demolished Now a Popeye's Store #2050*
11403 Wilcrest Dr Houston, TX 77099March 1980-198? Still Standing, Now Vacant Store 2019*
12550 Bellaire Blvd Houston, TX 77072March 1980-1989 Demolished Rebuilt as a Popeye's with Gas Station in 2003.*
7629 W Bellfort Blvd Houston, TX 770711979-1989 Converted to a Whataburger. Still standing somewhat updated. Store #2028.
3198 Fondren Rd, Houston, TX 770631980-1984 Became an El Pollo Loco 1985 Then Frenchy's 1986 Finally Hartz's Chicken 1989.
18552 Kuykendahl Rd Spring, TX 773791985-19?? Converted to Popeye's building heavily remodeled*
2420 Gessner Rd Houston, TX 77080198?-19?? Demolished?*
9131 Long Point Rd, Houston, TX 770551979-198? Still Standing, Now a Used Car Lot. Store #2027*
5625 Richmond Ave Houston, TX 770571979-198? Converted to Popeye's. Building still standing, remodeled 2014. Store #2042*
2601 S Loop 35, Alvin, TX 77511September 1979-198? Converted to Popeye's?*
1800 N Velasco St Angleton, TX 775151980-198? Converted to a Little Caesars
3921 7th St Bay City, TX 77414April 1979-19?? Now a Dry Cleaners
100 S Alexander Dr Baytown, TX 775201980-19?? Sold to El Pollo Loco. Original building torn down 2009 rebuilt by Dairy Queen.
850 Dixie Dr Clute, TX 775311980-19?? Demolished now a Sonic.
802 N Loop 336 W Conroe, TX 77301September 1979-1988 Now a Whataburger
2354 N Mechanic St El Campo, TX 774371980-198? Now a Subway
528 University Blvd Galveston, TX 775501980-198? Converted? to a Whataburger
3101 Farm to Market 1960 Rd E Humble, TX 773381980-198? Demolished?*
2705 11th St Huntsville, TX 773401980-198? Converted to a Sonic in 2001, building still used as dining room
2133 Southmore Ave Pasadena, TX 775021980-198? Now an independent restaurant. Expanded in 1997
3416 Broadway St, Pearland, TX 775811980-198? Converted to a Popeye's. Remodeled in mid 2010s.
4417 Avenue H, Rosenberg, TX 774711980-198? Converted to Whataburger, Closed 2009?
1503 Spencer Hwy South Houston, TX 77587September 1979-19?? Now a Jack in the Box
8260 Louetta Rd Spring, TX 77379February 1979-198? Originally 7400, Became a Whataburger (Thanks Rudy!) Now Taste of China.
3101 Palmer Hwy Texas City, TX 775901980-198? Demolished?
938 NASA Road 1 Webster, TX 77598September 1979-19?? Demolished?