Greenville-Based Del Taco Franchisee Files for Bankruptcy Amid Rising Costs
GREENVILLE, SC — Matador Restaurant Group, the Greenville-based franchisee for Del Taco, has filed for bankruptcy after grappling with plummeting sales, surging costs, and burdensome merchant cash advance (MCA) debt. The move casts uncertainty over the brand’s limited footprint in South Carolina, where just one location currently operates.
Franchisee Facing Major Financial Pressure
Matador Restaurant Group operates 22 Del Taco locations across the region and is owned by Red Door Brands, a group that also franchises Arby’s, McAlister’s Deli, and Little Caesars. Bankruptcy documents show the group holds between $1 million and $10 million in both assets and liabilities, and more than $2.7 million in MCA-related debt, as reported by Verdict Food Service.
Court filings indicate that Matador’s financial decline began in late 2024, with the combination of “company growth, an unexpected decline in sales and rising operational costs,” leading the company to seek high-risk loans to stay afloat. However, the aggressive repayment schedules and fees associated with MCA loans only worsened the situation.
“The MCA loans put [Matador] into further financial distress due to the excessive fees, excessive interest rate, and aggressive payback schedules,” the filings state.
A Broader Crisis for Del Taco
The bankruptcy of its Greenville franchisee is just the latest chapter in a broader crisis for Del Taco, which was acquired by Jack in the Box in 2022 for $585 million. Since the acquisition, the taco chain has experienced five consecutive quarters of declining same-store sales, according to Restaurant Business.
In 2024, system-wide sales for Del Taco declined by 1.8%. Now, its parent company is actively seeking a buyer to offload the brand by the end of 2025.
Read more about Del Taco’s business trajectory, which has seen the chain fall behind competitors like Taco Bell, despite once positioning itself as a major rival.
Limited SC Presence — But Expansion Was Planned
Despite its long history dating back to the 1960s, Del Taco’s presence in South Carolina remains sparse. The only current location is in Columbia, at 145 Harbison Blvd. Plans had been announced earlier this year to open a new location in Socastee, just outside of Myrtle Beach along Highway 544. However, the new location has not been listed on the company’s website, and it’s unclear whether the bankruptcy will delay or derail the project.
Del Taco has seen mixed expansion results in recent months:
- February 2025: Deal signed to open 10 stores in Indiana.
- March 2025: Closed all Colorado stores due to another franchisee bankruptcy (Newport Ventures).
- June 2025: Announced entry into the Louisville, Kentucky market under a new operator, Karan Pandher.
Have you visited the Del Taco in Columbia or were you awaiting the new Myrtle Beach location? We’d love to hear your experience or thoughts about the chain’s future in South Carolina. Share your comments with us at SaludaStandard-Sentinel.com.
