We know the value push has a lot to do with the state of the U.S. economy and the vast mass of people who don't make what they deserve. But at the end of the day, a race to the bottom of the $1 barrel is never a great one for any brand to be engaged in.
— Jason Clampet
Hey, remember us?
That’s Taco Bell’s message to fast-food consumers as the price war in the industry gains momentum.
With visits to U.S. fast-food restaurants seen remaining flat next year, the major burger chains are jockeying for position and announcing discounts to keep diners’ attention. This includes McDonald’s Corp., which earlier Monday unveiled a new value-priced menu.
Taco Bell, the Mexican-themed chain owned by Yum Brands Inc., is responding with what it calls its “biggest value push in company history.” The chain is reminding customers that it has a $1 menu with 20 items, and this dollar lineup will be boosted by 20 more limited-time offerings in 2018. The menu will include nacho French fries and a new “stacker” quesadilla — beef and cheese in a folded flour tortilla.
“I think a lot of places begrudgingly try to figure out what food to serve at these price points,” Brian Niccol, the chain’s chief executive officer, said in an interview. “We choose to lean into it.”
The $1 “cravings” menu at Taco Bell, which has posted same-store sales growth the last six years, dates back to 2014. A $5 box offer came two years later. The two discount offerings generated roughly $1.5 billion in sales last year.
©2017 Bloomberg L.P.