South End’s taco takeover continues with the addition of Florida-based Tex-Mex chain, Capital Tacos.

Why it matters: This taco spot is entering the Charlotte market in an unconventional way. It’s starting out as a ghost kitchen.

  • This is only step one of the brand’s initial expansion into the Charlotte market, co-founder Josh Luger tells Axios. Next steps will include establishing a brick-and-mortar presence, starting a food truck and possibly even opening in a food hall.
  • Lugar says his team is currently in active discussions with multiple brick-and-mortar locations in the area. Customers could see a storefront location as early as Q1 of 2023.

What to expect: As far as menu offerings, there will be 13 core taco variations – all scratch-made and chef-curated. Luger describes the dining experience as “fast-casual-plus.”

  • In addition to tacos, the menu will also have items like burritos and bowls.
  • Capital Tacos will also have creative Tex-Mex dishes like mac and queso, epic nachos and crazy fries.
  • “Expect the unexpected. There’s always something around the corner that’s unique and different,” Luger says.

Location: Capital Tacos will start out at CloudKitchen, a ghost kitchen located at 500 W. Summit Ave. in South End. “A majority of our sales are digital, so we think the model itself works really well for us,” Luger says.

Timeline: Luger and his team hope to open shop by the end of Q4.

Zoom out: Charlotte saw a significant rise in ghost kitchens, or takeout-only restaurants, throughout the pandemic.

  • We reported on a ghost kitchen in West Charlotte called The City Kitch which provides food businesses with a commercial cooking facility without the upfront costs of a brick-and-mortar space or even a food truck.

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