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The Street
The Street
Business
Daniel Kline

Beyond Mexican Pizza: Taco Bell Drops Another Menu Item

Before the covid pandemic few Americans talked much about the "supply chain." That's because product shortages have been pretty rare and people understand the concept of something selling out more than they understand the vagary of why a retailer or restaurant may not be able to get something in the first place.

Now, the supply chain has become something on the tip of a lot of people's tongues largely dating back to early in the pandemic when toilet paper was in short supply. People might overlook a store being out of their favorite brand of paper towels or not having the exact jar of peanut butter they usually buy, but literally having no toilet paper presented a real problem that set the table for the two years to follow.

Grocery stores and restaurants simply don't always have the items they normally do. That could be a nuisance -- like the fact the canned iced coffee beverages seem to be in short supply -- to more pressing issues like the baby formula shortage.  

Fast-food chains have not been immune. Restaurant Brands International's (QSR) Burger King and McDonald's (MCD) have both had to limit sales of french fries in some markets. Yum! Brands (YUM) Taco Bell, on the other hand, has had a hand in its rather large supply chain problems that led to the return of its beloved Mexican Pizza being short-lived.

That happened because the company misjudged demand for Mexican Pizza and it sold faster than Taco Bell could replenish ingredients. Now, the same thing has happened for a bizarre, but apparently intriguing, new menu item the company had been testing.

TheStreet

Say Goodbye to the Taco Bell Cheez-It Tostada

Taco Bell's most successful product, the Doritos Locos Taco has led to all sorts of sequels and spin-offs featuring Doritos and other snack chips. Recently, the chain has been testing two products based on the Cheez-It snack chip, the Big Cheeze-It Tostada and the Big Cheeze-It Crunch Wrap.

In this case, the name actually kindly of explains the products. The Tostada is served on the big Cheez-It while the Crunch Wrap has the giant cheesy snack cracker on the inside. The new items were being tested in a single location in California, but demand was higher than anticipated.

"While this was a one-restaurant test available to our fans while supplies last, it’s clear that Taco Bell and Cheez-It fans want more of this craveable collaboration! Even though we can’t guarantee that any specific test item will rollout nationwide, at Taco Bell, we never say never!" Taco Bell said in a statement the Houston Chronicle reported.

Could the Cheez-It Items Join the Taco Bell Menu?

Just the fact that Taco Bell commented on an item that was tested at a single store, suggests the chain has big plans for its giant Cheez-It products. In addition, the test got a lot of media attention which would make a nationwide rollout a return, not really a new item, even though very few people actually got to try the Cheez-It Crunch Wrap and/or the Cheez-It Tostada.

This was a very high-profile test compared to the chain's normal efforts which tend to fly below the radar and are rarely acknowledged by the company. In addition, the test run sold out what was expected to be a two-week supply in a single week.

Small tests do not always tell the full story when it comes to national demand. The McDonald's McPlant, for example, sold well in a very limited test but has not performed anywhere near as well after being rolled out on a wide basis.

Still, Taco Bell has shown that it can make these snack chip mashups successful and this one appears to be its next big hit, even if fans do have to wait for the giant Cheez-Its to be produced. 

 

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