Awarded Hottest Concept

Capital Tacos takes on Florida – NRN

Josh Luger and James Marcus had big ambitions to find a restaurant concept and do something “truly special” with it.

Rather than start their own business, the two decided to buy an existing concept and expand it. That concept was a hole-in-the-wall taco shop in Tampa, Fla. that didn’t even have a sign on the front yet was ranked by Foursquare as the second-best place to eat in Tampa and one of the country’s three best spots to eat at, according to the company.

Both Luger and Marcus had restaurant experience. Marcus claims to have started the first ghost kitchen with a late-night concept he started in college, Underground Chicken. Luger used to operate a dining newsletter in New York City. They bought the taco shop and renamed it Capital Tacos.

Growth has been a slow process.

“We’d much rather have 25 of the best restaurants serving the best Tex-Mex around than 2,500 serving mediocre ones, even if they’re more profitable,” Luger said.

The difference between those two, he added, is handmade ingredients.

“The differentiator between us and other folks is we grill every single thing to order. We have a true scratch kitchen,” Luger said.

It’s also not a build-your-own place. Everything has been crafted by high-quality chefs to be built for guests’ enjoyment.

“We spent a hell of a lot of time creating each and every one of the [menu items] to make sure they’re perfect,” he said. “And so the result is a menu that has the depth and the breadth that you don’t really see from any other chain.”

While tacos are in the name, Luger said they represent less than half of sales because the Capital Tacos menu is so diverse, including burritos, bowls, nachos and more.

Capital Tacos now has five locations, and Luger said the company is pursuing additional growth under a variety of formats.

“We’re somewhat agnostic, but literally at the end of the day, we come to market with a very clear statement, which is we want to have a lot of touch points … across a multitude of different real estate types,” he said.

That could include virtual restaurants, food trucks and traditional brick-and-mortar locations.

How Much do Franchise Owners Make?

“Some researchers have tried to crunch the numbers with the aim of helping potential franchise owners get an idea of the income that they can expect by buying a franchise. According to a survey done by Franchise Business Review involving 28,500 franchise owners, the average pre-tax annual income of franchise owners is about 80,000 dollars. However, this number should be taken with a grain of salt bearing in mind that it could be inflated by high incomes of a few top performers. When researchers accounted for the inflations caused by the few top franchises, it was established that the average annual income of 51 percent of franchisees is less than 50,000 dollars. The study also found that only 7 percent of franchise owners earn over 250,000 dollars a year.

The survey by Franchise Business Review also found that about 21 percent of franchise opportunities are in the quick-service restaurants’ industry. This is despite the fact that restaurant businesses require a bigger initial investment compared to some other businesses with almost similar profit potential. On average, franchise owners in the restaurant industry take home about 82,000 dollars a year. However, the start-up cost can be anywhere between 100,000 dollars and a million dollars.”

How Much Do Franchise Owners Make?, Franchise Direct