Taco Bell keeps its test kitchen busy.
While most fast-food chains make a few menu changes and add a handful of limited-time offers (LTOs) each year, Taco Bell seems to do that every few weeks.
Some of the chain's menu innovations involve bringing back familiar favorites, sometimes with a new twist. Currently, for example, the Yum Brands (YUM) -) chain offers multiple versions of its Grilled Cheese Nacho Fries.
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That's a spin on the regular Nacho Fries, which are seasoned fries served with a nacho cheese dip. The new version adds ground beef, a second cheese blend, and a chipotle sauce. It's not a major change, which is part of what has made the chain's menu variations so successful.
Taco Bell has lots of new items, but those items are familiar in a way that makes them an easy sell to fans. The best example of that, at least from 2023, might be the chain's Breakfast Tacos.
Introduced in an ad starring comedian Pete Davidson, the morning tacos were presented as something the chain probably should have always offered. They were actually part of a bigger plan to make Taco Bell's breakfast offering a little more familiar and easy-to-understand for its customers.
Now, as the year comes close to an end, Taco Bell has one last (probably) new menu innovation for its fans.
Image source: Taco Bell
Taco Bell has a new drink
In addition to its food innovations, Taco Bell has been a leader in offering interesting drinks. That has included exclusive flavors of PepsiCo's (PEP) -) Mountain Dew, various Brisk Iced Tea flavors, and even a low-calorie Gatorade.
The chain has offered an expansive beverage selection because its leadership has never lost sight that Taco Bell sometimes serves people outside of normal meal hours. Taco Bell's menu has always lent itself to snacking. You can pick up an order of Nacho Fries, a taco or two, and/or some Cinnamon Twists and tide yourself over between meals.
That's supplemented by the chain's deep beverage lineup which includes a line of slush-style drinks. The company has surprisingly added a new "Freeze," frozen slush to its menu for a limited time right before the holiday season.
"Taco Bell has introduced the new Double Berry Freeze as the latest limited-time flavor for their line of slush ice drinks. The Double Berry Freeze features a swirled combination of the Blue Raspberry Freeze and Wild Strawberry Freeze in one cup," Brand Eating reported.
A large Double Berry Freeze costs $3.69 and has 170 calories. The chain also allows customers to order a Blue Raspberry or Wild Strawberry Freeze for the same price.
Taco Bell explains its growth strategy
Yum Brands CEO David Gibbs spoke about Taco Bell's 2023 growth during his company's third-quarter earnings call.
In the U.S., Taco Bell's overall sales grew by 11% while same-store sales increased by 8%. The chain added 3% through adding new stores.
"The Taco Bell team leveraged its magic formula that encompasses a balanced set of commercial strategies, including building brand buzz, unparalleled value, mass occasions, and digital initiatives to grow transactions during the quarter," Gibbs shared. "They delivered unparalleled value with the return of fan favorites like the $5 box, an amazing platform at a compelling price point."
Gibbs repeatedly cited the chain's mix of value and innovation as driving its sales.
"One such example is the growth in chicken offerings, which the team plans to further expand with the launch of its Cantina menu," he added.
