Taco Bell tests $1 Cravings menu

Ramping up snacks

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Brandt said the test is still in its early phases, but the chain intends to maintain its mix of value-positioned and premium menu offerings. The latter includes the Cantina Bell menu, developed last year by celebrity chef Lorena Garcia, with items approaching $5. That menu was designed to “make Taco Bell more relevant,” he said.

Taco Bell has also been developing more snack items for its menu, which have appeal from a value standpoint. In December, Taco Bell rolled out a new appetizer-inspired menu called Loaded Grillers with a limited-time price of 99 cents for some items. The Grillers were designed to replicate the flavors of favorite appetizers such as potato skins, nachos or Buffalo wings in a portable form “that doesn’t have to be shared,” Brandt said.

In November, the chain expanded its dessert menu with a new churro for a recommended 99 cents, and a cookie sandwich for a suggested $1.29, which joined the signature Caramel Apple Empanada and Cinnamon Twists on the value menu. Taco Bell has also tested snack items for a Happier Hour promotion that runs from 2 p.m. to 5 p.m., but that effort is still under construction, Brandt said. “There’s more to come there,” he said.

Other quick-service chains have also been revamping their value offerings to attract budget-conscious consumers. Earlier this year, Wendy’s added a tiered Right Price Right Size menu with items between 99 cents and $1.99, designed to show value-focused guests more variety at lower price points.

Wall Street analyst Mark Kalinowski of Janney Capital Markets wrote in a report Friday that a move by Taco Bell to promote the $1 price point is a smart idea, especially considering competitors' moves. “Quick-service competitor McDonald’s recently switched to better promotion of its Dollar Menu, which we believe is a main reason that McDonald’s November U.S. same-store sales meaningfully outperformed consensus (and one reason why we believe that McDonald’s will do so again when they report December U.S. same-store sales on Jan. 23),” Kalinowski wrote.

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout