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The Street
The Street
Daniel Kline

Taco Bell menu adding a new take on a comfort food classic

Short of offering hamburgers, Taco Bell seems to not limit its menu innovation.

It's actually not inconceivable that the "think outside the bun" brand might someday figure out how to offer its take on a cheeseburger, but that day has not yet arrived. What Taco Bell has done on many occasions is find ways to take something that's not traditionally associated with Mexican food and made it work on its menu.

Related: McDonald's menu makes a huge Happy Meal change

That success traces back to the Yum Brands YUM chain's Mexican Pizza, a take on the Italian classic that used traditional Mexican ingredients to create something that's vaguely pizza-like. Call it a fast-food version of fusion cooking, or just call the chain innovative, but Taco Bell has had a lot of success mixing its traditional menu items with American classic comfort food.

Taco Bell has the ability to offer something that none of its rivals have while also making the new item feel familiar to customers. That innovation ability allowed Taco Bell to add its version of french fries which may not be exactly like the versions sold at McDonald's MCD, Wendy's, and Burger King, but they work well on the chain's menu.

Nacho Fries remained a limited-time-offer (LTO) which the chain brings back in new flavors fairly often. Now, Taco Bell has a new take on Nacho Fries headed to menus later this month.

Nacho Fries have been a big hit for Taco Bell.

Image source: Taco Bell

Taco Bell embraces American comfort food     

Taco Bell has embraced the idea of offering menu items that are evocative of classic American comfort food, but not exactly in their traditional format. That's perhaps the best way to describe the Grilled Cheese Buritto, a former limited-time offer that was a very strong seller so the chain added it to its permanent menu.

"Seasoned beef, nacho cheese sauce, seasoned rice, fiesta strips, creamy chipotle sauce, reduced-fat sour cream, and three-cheese blend wrapped inside a warm flour tortilla, with even more three-cheese blend grilled on the top," is how the company describes the seasoned beef version of the Grilled Cheese Buritto on its website.

Now, Taco Bell is adding another new item, a version of its Nacho Fries, that will use the "Grilled Cheese" name.

"Starting November 16th you'll be able to get the Grilled Cheese Nacho Fries in regular or spicy. They start with a layer of nacho fries that are topped with melted cheese, steak, and the option of jalapenos for an added kick," the Snackolator Instagram page reported.

The chain has not shared an end date for the promotion nor has it confirmed it publicly.

Taco Bell plans a major improvement

Taco Bell U.S., system sales grew 11% with 8% same-store sales growth and 3% unit growth. Yum Brands CEO David Gibbs talked about the chain's results during his company's third-quarter earnings call.

"A key component of the magic formula is 'mas occasions,' the brand's personal expression of building new category entry points. One such example is the growth in chicken offerings, which the team plans to further expand with the launch of its Cantina menu," he shared.

The chain also has plans to fix a big weakness relative to McDonald's, Wendy's, and Burger King. Gibbs noted that Taco Bell's loyalty program members spend more than 40% than customers who are not members. Customer feedback suggests that there's room to improve the program.

"Starting next year, Taco Bell will enhance its loyalty program and provide easier access across channels to earn and redeem points," he said. "Additionally, members will enjoy more exclusive experiences, including more digital innovation, early access to new products, and loyalty-enabled and experiences. Eventually, the team will integrate its loyalty program with digital menu boards to create an even more personalized experience."

Yum Brands shares are down 1.4% this year.

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