Taco Bell is allowing franchisees to opt out of breakfast starting in October 2024. According to the company, the decision was made to give franchisees “a choice to streamline menus” and “only a small minority have opted out of serving breakfast.”
The opt-out opportunity was created based on franchisee feedback, the company added, allowing them to focus more on other dayparts and platforms, including lunch and the Cantina Chicken menu. Executives have shared in recent quarters that lunch remains a major opportunity for Taco Bell, while chicken meets younger consumers’ demands. During the company’s recent Live Mas Live event in Las Vegas, CMO Taylor Montgomery said the company is making a play for more lunch/afternoon business, noting that customers would visit more frequently if there were more chicken options.
Notably, breakfast will continue to be served at all company-owned locations, and Taco Bell said it remains confident in its breakfast offerings.
“In fact, breakfast performance continues to improve through Q2 2024,” the company said.
As such, Taco Bell is ramping up its coffee platform and continuing to test new breakfast items in company stores.
“We are constantly trying new things (products, restaurant formats, etc.). This is no different; we test and learn so we can evolve and better serve our franchisees, team members and fans. We have to be nimble in a constantly changing QSR environment, especially with the range of audiences and lifestyles we serve,” the company said.
Taco Bell first introduced breakfast in 2014, offering unique products like the A.M. Crunchwrap and Waffle Taco. The daypart was largely paused during the pandemic in 2020 but has since made a strong return. A 2023 report from Circana showed that total restaurant traffic during the breakfast daypart fully recovered from pandemic losses. Morning meal restaurant visits grew by 10% in February 2023 compared to 2022 and were up 2% versus three years ago.
Taco Bell has continued its competitiveness as the daypart mounts a comeback, launching breakfast tacos, testing breakfast tots, and recruiting comedian/actor Pete Davidson to “drive consumer buzz.” The initial campaign with Davidson last year helped drive a 9% transaction increase during Taco Bell’s breakfast hours.
All Taco Bell locations will be open at 9 a.m. or earlier serving the rest of the menu. For locations continuing to serve breakfast, Taco Bell is typically open at 7 a.m., meaning employees likely start clocking in to prep around 6 a.m. Taco Bell's store locator includes restaurants that will continue to serve breakfast.
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