Taco Bell wants to keep customers guessing.
It adds new limited-time offers at dizzying speed with seemingly no logic as to when new items get introduced.
The chain uses a sort of chaos model designed to keep customers coming back because the menu might have something that wasn't there on their previous visits.
No rival comes close to the number of changes Taco Bell makes each month with only Restaurant Brands International's (QSR) -) Burger King coming close.
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Yum Brands' (YUM) -) Taco Bell wants to compete not only on variety but also on value. Yum Brands Chief Executive David Gibbs made this point during the company's second-quarter-earnings call.
"Taco Bell continues to execute its magic growth formula through a balanced set of commercial strategies, including building brand buzz, unparalleled value, Mas occasions, and digital initiatives," he said.
Gibbs made clear on previous earnings calls that he wanted to compete with Chipotle (CMG) -) when it comes to premium products but also to position Taco Bell as a low-cost option for consumers.
He said that value was something the chain's customers think about a lot.
"The vast majority of our U.S. operating profit is driven by Taco Bell, a leading brand in both cultural relevancy and affordability," he said. "...In an uncertain environment, we know that consumers make decisions with value in mind."
Taco Bell has addressed exactly this in its latest menu move: It has added a number of items including Rolled Chicken Tacos with a choice of dip, a Strawberry Creme Delight Freeze, Cheesy Jalapeno Mexican Pizza, and Strawberry Twists.
On Sept. 28 the chain will also bring back its Nacho Fries with a new larger-size option, and it has already added a new $2 value item that should prove popular with customers.
Image source: Taco Bell
Taco Bell adds a $2 Chicken Enchilada Burrito
Two dollars has been an important price point for Taco Bell. The chain has a line of $2 burritos, which it has expanded by adding the Chicken Enchilada Burrito.
"Taco Bell's Chicken Enchilada Burrito features grilled chicken, seasoned rice, zesty red sauce, 3-cheese blend (mozzarella, cheddar, and Monterey Jack cheeses), and reduced-fat sour cream wrapped in a warm flour tortilla for a suggested price of $2," Brand Eating reported.
The price could vary in some markets. A Chicken Enchilada Burrito has 380 calories and it can be customized via the chain's app or website in dozens of ways.
Taco Bell's Cravings Value menu includes items at the $1 and $2 price points. That's important because many McDonald's (MCD) -) customers have been upset with the chain since in some markets its $1, $2, $3 Value Menu does not actually offer any $1 items.
For $1, Taco Bell customers can order the Cheesy Rollup, Cinnamon Twists, and the chain's new Strawberry Twists. In addition to the Chicken Enchilada Burrito, $2 gets customers a Cheesy Bean, and Rice Burrito, or a Fiesta Veggie Burrito.
The Chicken Enchilada Burrito is the chain's only value item that contains meat.
Taco Bell grows sales and influence
Taco Bell has been an innovator. The company has become a brand that people talk about, another point Gibbs noted during the Q2 earnings call.
"I'm thrilled to share more external recognition of Taco Bell's brand power and relevance with the brand's inclusion on the Time 100 List of the World's Most Influential Companies," he said.
"This category of one brand remains ever relevant by pushing boundaries and introducing and reintroducing exciting and craveable menu items and always being part of the cultural moment and conversation."
Taco Bell global system sales grew 7% in the second quarter, led by 4% same-store sales growth and 5% unit growth.
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