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Taco Bell Franchisee Costs

Posted by capital on September 23, 2012
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Louisville-based Yum Brands, the parent company of Pizza Hut, Taco Bell and KFC, is the world’s largest restaurant company with more than 37,000 locations. Taco Bell is the largest Mexican QSR in the world. About 80% of the almost 6,500 Taco Bell locations are franchised and on average generate $1.29 million in annual sales acording to QSR magazine with 60% to 70% having drive thrus.

 A stand alone Taco Bell location is estimated to cost between $1,300,000 and $1,600,000. This does not include costs associated with the lease which is often a 25 plus year ground lease.

Yum Brands requires those who want to own a Taco Bell franchise to have a net worth of over $1,500,000 and $300,000 in equity. Additional estimated fees are noted in these tables.

There is much debate about the ROI for the big restaurant chains.