Originally known as Casa Del Taco ("House of the Taco"), the first Del Taco restaurant was founded in 1961 in Yermo, California by Ed Hackbarth and David Jameson. On the first official day of business, Del Taco made $169.[3] Success of the first restaurant led to two in Barstow, one in Needles, and a fifth restaurant in Corona
(the first Del Taco with a drive-thru window). Dick Naugle, who
installed the kitchen equipment in the Corona store, was impressed by
the design and joined Hackbarth and Jameson in the fledgling business.
In 1966, the trio founded Red-E-Food Systems, Inc. with the idea of
franchising the Casa Del Taco brand.[4]
That same year, the original Del Taco sun logo was created and in 1967,
Del Taco introduced their famous bean and cheese burrito with green or
red sauce to their menu.[3] Before long, the restaurants were being founded throughout Southern California.
Naugle left the company early in the decade to start his own Mexican fast food chain, Naugles.
In 1973, the company dropped “Casa” from its name and Red-E-Food
Systems became Del Taco, Inc. By that time, the company was enjoying a
remarkable growth spurt; during one period, they were opening a new
restaurant every month. However, in 1976, Hackbarth and Jameson sold Del
Taco to a group of investors. The new owners sold the exclusive rights
to use and develop the Del Taco name throughout the United States
(excluding California; Eugene, Oregon; and Yuma, Arizona) to W. R. Grace and Company. Grace, primarily a chemicals company, founded a new company, Del Taco Restaurants Inc. of Dallas, Texas, and a new subsidiary, DTG Inc., to oversee the various fast food chains it was acquiring.[4]
Nonetheless, the franchise continued to expand. In 1977, there were 50
Del Taco restaurants. A year later in 1978, there were 100.