Taco Bell is schooling other YUM! Brands on how to succeed in an increasingly competitive market.
The Tex-Mex chain reported its 11th straight quarter of growth, 4%, while its siblings – KFC, Pizza Hut, and Habit Burger & Grill – contributed to an overall 2% drop in sales for YUM! overall.
Experts told The Food Institute Taco Bell’s success can be attributed to its savvy handling of digital media and its ability to identify and engage with its target audience – an audience that appreciates the chain’s later closing times.
“Taco Bell’s recent success is no accident – it’s smart, targeted marketing. They’ve mastered limited time offers that create urgency, like the ‘Bajaversary’ for Baja Blast, which pulled in customers and spiked visits,” said Paul Drecksler, an e-commerce expert and founder of Shopifreaks.
“Their campaigns connect with young adults through humor and pop culture, making the brand feel fresh and relevant.”
Drecksler noted nearly 60% of Taco Bell sales are from its app, where users get exclusive offers.
Bromatologist and researcher Ken Tobby, CEO of Organic Solace, said not only have Taco Bell’s LTOs created a sense of urgency, they show the chain has mastered the art of “scarcity,” encouraging consumers to interact with new items while reintroducing customer favorites.
“This approach usually brings about repeat visits and sales spikes, as people do not want to miss out,” Tobby said.
Additionally, by constantly updating its menu, the company “caters to a range of palates with its vegetarian selections [and] innovative flavor combinations, as well as customizable entrees.”
Success, however, may all boil down to marketing and its ability to adapt tech-driven solutions.
“Taco Bell’s marketing taps into youth culture with bold, quirky campaigns that leverage social media effectively, creating buzz and brand loyalty among younger demographics,” said Biruite Sutkiene, marketing, finance and tech expert. “Its innovative menu approach – blending familiarity with experimental items – maintains a base while encouraging curiosity.”
Financial planner Steven Kibbel, chief editorial adviser at Gold IRA Cos., said what seems even more interesting about Taco Bell’s success is that it has managed to integrate LTOs without eroding margins – something other YUM! properties haven’t been able to duplicate.
“They’re quick to adjust to trends with items that appeal to budget-conscious consumers, which helps sustain growth in a tough market,” Kibbel said. “It’s not just the novelty factor but also the efficiency in their operations and pricing strategy that helps them stay competitive.”
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