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The Street
The Street
Daniel Kline

Taco Bell menu adds an item it has never offered before

Taco Bell recently laid out a massive plan for its menu, sharing a number of items it plans to add or bring back. 

The company held a huge event Feb. 10 on the Las Vegas Strip where it made every effort to get media attention for its new additions. These include a new shredded chicken that will be used in five different dishes. 

The Yum Brands (YUM) chain's Cantina Chicken menu brings more than a new protein to the chain. It also adds a number of new-to-Taco-Bell ingredients to the chain's menu, including purple cabbage, pico de gallo, a white corn taco shell, and a new sauce packet, Avocado Verde Salsa. 

Related: Chapter 11 bankruptcy claims another popular restaurant chain

Those items will be used in five new dishes that will be offered nationwide: the Cantina Chicken Burrito, Cantina Chicken Taco (soft or crispy), Cantina Chicken Quesadilla, and the Cantina Chicken Bowl. 

The chain has also introduced its take on an empanada, the Cheesy Chicken Crispanada, and it plans to bring back its Crispy Chicken Nuggets.

That's an open challenge to McDonald's, Wendy's and Burger King, as Taco Bell now offers both fries and chicken nuggets. Aside from not having burgers — and a ground beef taco is really just a variation on a cheeseburger — the chain now has variations on everything the big three burger chains offer.

Taco Bell, however, still has another surprise in store. 

Nacho Fries have been a massive hit for Taco Bell.

Image source: Taco Bell

Taco Bell adding a new take on a Mexican classic 

In addition to food, Taco Bell has made beverages a major driver of its menu. The chain has partnered with PepsiCo's (PEP) Mountain Dew for a number of flavors that are unique to the chain and come in both liquid and frozen varieties.

Taco Bell has not, however, had a lot of success with coffee. It offers hot and iced coffees, as well as variants in partnership with Cinnabon, but it has never really made a big mark in that space. 

That's something the chain hopes to change with its latest partnership with Beekeeper, a ready-to-drink coffee brand that adds a drop of honey to its coffees. The company and Taco Bell partnered to create a limited-edition Horchata cold brew latte.

Horchata is a traditional Mexican drink made with water, rice, cinnamon, milk and vanilla. Coffee-based versions have become increasingly popular over the past few years.

"The Beekeeper Coffee Horchata cold brew latte will be a delicious blend of smooth cinnamon and creamy vanilla perfectly paired with a drop of honey," the company said in a news release.

Taco Bell has not specified when the coffee will be added to its menu.

Taco Bell innovates beyond its menu

In addition to endlessly adding items to its menu, Taco Bell has also been innovating in other ways, including testing and adopting new store designs. Yum Brands Chief Financial Officer Chris Turner talked about the efforts during the third-quarter-earnings call.

"Taco Bell's newest small box design, Go Mobile 2.0, now open in El Paso, Texas, builds on the original Go Mobile concept. This new design leverages digital capabilities to create more touch points for consumers to order and pick up in a seamless manner," he said. 

The company, which also owns KFC and Pizza Hut, has also been working on improving its in-store operations.

"We have developed a proprietary automated drinks fulfillment system that frees up team member time and increases drive-thru speed and accuracy," he added. 

"We've designed these technologies to integrate seamlessly with our proprietary Poseidon point-of-sale platform, and we look forward to continuing to test, refine, and pilot these capabilities."

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