America’s most popular Mexican-American fast food chain has joined the so-called “fast food wars,” offering new meal deals to bring customers through their doors.
Fast Food War
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A fast food war is raging in America, as some of the country’s biggest chains race to establish affordable, high-value meals in a bid to bring customers back to their restaurants. Now, Taco Bell is the next chain to join the fight.
Luxe Cravings Box
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On Thursday the California-based, Mexican-inspired chain announced its plans to launch the “Luxe Cravings Box,” one of the biggest meal deals in Taco Bell history.
A $7 Deal
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This newest deal includes a Chalupa Supreme taco, a 5-layer burrito, a double-stacked taco, chips with nacho cheese sauce, and a medium-sized drink – all for just $7.
55% Lower Than Regular Menu Prices
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It will run for a limited time only and offers this large combo at a price 55% lower than the items would cost when purchased individually from the menu.
Trying to Bring Customers Back
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The Luxe Cravings Box aims to appeal to inflation-weary customers who have been walking away from fast-food restaurants in droves. Inflation has driven menu prices so high that many no longer see fast food as an affordable alternative to eating at home.
CMO Explains
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Taco Bell’s chief marketing officer Taylor Montgomery has described their latest deal as the “most abundant” offer the chain has ever sold in terms of relative cost and value.
“More Than We Have Ever Given Them”
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He also described the deal as giving Taco Bell customers “more than we have ever given them before,” though he did not confirm whether the deal was being sold at a temporary loss in exchange for good publicity.
Living Up to Commitments
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“With the launch of the $7 Luxe Cravings Box, we’re giving consumers our most crave-able items at an affordable price point and living up to our commitment on value to satisfy cravings with fan-favorite full-sized menu items,” he added.
Following the Cravings Value Menu
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He also pointed to the fast food chain’s pre-existing Cravings Value Menu, which was introduced back in January and offers 10 menu items for $3 or less, including the Double Stacked Taco, Cheesy Double Beef Burrito, and more.
Leading in the Industry
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“Our Cravings Value Menu is one of the leading value menus within the industry, offering 10 items at under $3,” he said. “Because we believe consumers shouldn’t have to choose between affordability and abundance.”
A Growing Trend
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Taco Bell’s newest deal is just the latest in a growing trend for fast food chains, started by Burger King.
McDonald’s Follows
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Last month Burger King announced its $5 Your Way Meal deal, which was quickly followed by a nearly identical $5 meal deal offer from McDonald’s.
World-famous Chains Join the Fight
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Since then, Burger King and McDonald’s have been joined by Wendy’s, Subway, and now Taco Bell in the battle to bring customers back to their counters with more affordable meals.
No Longer Realistic?
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Heavyweights across the fast food industry have had to acknowledge that exponentially rising menu prices and expectations of year-on-year growth may no longer be realistic in the current economic climate.
Tightening the Belt
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Millions of Americans are now tightening their belts to stave off the pressure of continued inflation, and in many households, fast food has been the first thing to go.
Lending Tree Survey
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According to a recent survey by online lending marketplace Lending Tree, three out of four Americans eat fast food at least once a week. Of this group, 62% are now eating out less because of rising menu prices.
Fast Food Now a Luxury?
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Lending Tree data also shows that 80% of these same people now view fast food as a luxury rather than an affordable treat.
Tough Pill to Swallow
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Yum Brands, the parent company of Taco Bell and other prolific brands like KFC and Pizza Hut, has also acknowledged that its customers are spending less at its restaurants.
Weaker-Than-Predicted
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Back in February, the company reported weaker-than-predicted results for its fourth quarter. While Taco Bell is its most popular brand, the chain restaurant grew by only 3%, compared to 11% growth in the previous quarter.
Expected to Continue Through the Year
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Yum is expecting the trend of customer dissatisfaction over prices to continue through the year. “This trend has continued into the first quarter, and we expect that sales impact decreased over the course of 2024,” said CEO David Gibbs back in February.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
