Taco Cabana Franchise FDD, Profits & Costs (2025)
Taco Cabana was established in 1991 by Felix Stehling in San Antonio, Texas, starting out as a small taco stand inside a former Dairy Queen building. Its unique combination of an open-air patio and round-the-clock service quickly attracted a devoted customer base, paving the way for steady growth.
The company remains based in San Antonio and operates a wide network of locations throughout Texas.
In 2023, Taco Cabana introduced its franchising initiative, opening the door for expansion into markets beyond its home state.
The menu showcases a range of Tex-Mex staples such as tacos, burritos, and quesadillas, complemented by its well-known margaritas. The brand stands out for its emphasis on freshly prepared, handmade dishes and a lively, patio-centered dining atmosphere.
Initial Investment
How much does it cost to start a Taco Cabana franchise? It costs on average between $1,267,000 – $2,776,000 to start a Taco Cabana franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $35,000 – $45,000 |
| Grand Opening Advertising | $10,000 |
| Real Estate | $25,000 – $150,000 |
| Construction/Leasehold Improvements | $635,000 – $1,685,000 |
| Travel and Living Expenses While Training | $9,500 – $14,000 |
| Furnishing, Fixtures, Equipment | $274,000 – $322,000 |
| Signage | $60,000 – $155,000 |
| Initial Inventory | $25,000 – $30,000 |
| Miscellaneous Opening Costs | $100,000 – $180,000 |
| Register or Point of Sale System | $18,000 – $50,000 |
| Additional Funds – 3 Months | $75,000 – $135,000 |
| Total | $1,266,500 – $2,776,200 |
Average Revenue (AUV)
How much revenue can you make with a Taco Cabana franchise? A Taco Cabana franchised restaurant makes on average $1,452,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
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Frequently Asked Questions
How many Taco Cabana locations are there?
As of the latest data, Taco Cabana operates approximately 146 locations, with around 140 being company-owned and about 6 operated by franchisees.
What is the total investment required to open a Taco Cabana franchise?
The total investment required to open a Taco Cabana franchise ranges from $1,267,000 to $2,776,000.
What are the ongoing fees for a Taco Cabana franchise?
Taco Cabana franchisees pay a 5% royalty fee and a 4% marketing fee, both calculated on gross sales and paid on an ongoing (usually monthly) basis.
What are the financial requirements to become a Taco Cabana franchisee?
To qualify as a Taco Cabana franchisee, you must have a minimum net worth of $1,500,000, along with at least $750,000 in liquid capital available. These funds are essential to cover the substantial initial costs associated with opening and operating a location.
How much can a Taco Cabana franchise owner expect to earn?
The average gross sales for a Taco Cabana franchise are approximately $1.45 million per location. Assuming a 15% operating profit margin, $1.45 million yearly revenue can result in $218,000 EBITDA annually.
Who owns Taco Cabana?
The Taco Cabana franchise is owned by Yadav Enterprises, Inc.
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