Dive Brief:
- Taco Bell is refreshing its value menu with the addition of five new offerings following a test in the Indianapolis area last year. The chain’s Luxe Value Menu, which launches nationwide on Jan. 22, will feature 10 items priced at $3 or less. It replaces Taco Bell’s Cravings Value Menu.
- The lineup includes the Mini Taco Salad, Beefy Potato Loaded Griller, Chips & Nacho Supreme Dip, Avocado Ranch Chicken Stacker and Salted Caramel Churros, with the sweet treat marking the first in a series of limited-time items. Five products will be carried over from its Cravings Value Menu: the Cheesy Roll Up, Spicy Potato Soft Taco, Cheesy Bean and Rice Burrito, 3 Cheese Chicken Flatbread Melt and Cheesy Double Beef Burrito.
- Taco Bell’s value menu has been a key driver in helping the chain deliver strong results, even as its QSR competitors see a pullback in sales as inflation-weary consumers cut back on spending. Yum Brands CEO Chris Turner told analysts in November that Taco Bell’s value menu is one reason the chain is “resonating with consumers and delivering what they need.”
Dive Insight:
Taco Bell’s Luxe Cravings Box lineup has helped the brand generate a significant uptick in traffic, with its $5 box proving effective in attracting low-income consumers. The Mexican-inspired chain is tapping into that success with its Luxe Value lineup that comes with an even lower price point.
The Luxe Value Menu includes a mix of classic items, like its Cheesy Rollup, the lowest-priced item at $1.19. It also has more premium offerings, such as its Avocado Ranch Chicken Stacker, the most expensive product on the menu at $2.99. Taco Bell plans to refresh the lineup with limited-time items that complement familiar standbys.
The fact that Taco Bell is launching the Luxe Value Menu nationally just six months after the test began indicates the concept resonated well with consumers. At the time of the test launch, a Taco Bell spokesperson said it did not have plans to debut the Luxe Value Menu outside of Indianapolis.
“The Luxe Value Menu was built on one ambition: to defy expectations of what value can be,” Luis Restrepo, Taco Bell’s chief marketing officer in North America, said in a statement. “Through extensive fan testing and bold innovation, we created menu items that deliver an elevated experience at an accessible price point. This isn’t just a menu refresh, it’s a new standard for value at Taco Bell and across the industry.”
Taco Bell said its rewards members will get early access starting Jan. 16 through its app.
During its most recent quarter, Taco Bell posted a strong 7% increase in same-store sales, continuing its uninterrupted growth streak. Not only has value contributed to this same-store sales streak, but also new product pushes like Chicken Nuggets, Nacho Fries and exclusive Baja Blast flavors.
