Del Taco vs Papa Murphy's

Del Taco is the stronger software-sales opportunity right now, and the reason is budget. That $1.6M AUV, nearly 2.5x Papa Murphy’s, creates significantly more operational spending capacity. Unit-level cash flow dictates willingness to pay for POS, scheduling, and marketing automation, and the 9.5% unit growth signals franchisees are deploying capital, not just maintaining. When a franchisee drops $1.5M–$3.3M on a build-out, a $350/month SaaS fee is rounding error—that’s the procurement window you exploit.

The tradeoff is total addressable market. Papa Murphy’s nearly doubles the franchised unit count (965 vs. 461), meaning you can park a rep in any DMA and find targets. But a shrinking footprint with negative comps and a sub-$700k all-in investment screams cost-cutting, not tech investment. Selling into a network that’s contracting by 3.6% annually means fighting for replacement revenue, not capturing expansion spend. The larger TAM is hollow when the average franchisee’s P&L can’t justify a new software line item.

Go where the money is, not where the doors are. Right now, Del Taco’s growth trajectory and unit economics decisively outweigh Papa Murphy’s breadth. The meaningful risk is a thinner prospect base; manage it through high-referral territory selection rather than lowering ACV expectations. Verdict: Del Taco outpaces Papa Murphy’s on budget quality and expansion timing, making it the superior near-term target despite a smaller franchise count.