McDonald's has currently taken over the fast food world, or at least the social media version of it, with its Grimace Shake. The purple beverage, which is supposed to be fruit flavored, has spawned a social media craze where people pose in crime scene-like photos with the shake spilled around them.
That doesn't suggest that people really love the shake, but that wasn't really McDonald's (MCD) goal anyway. The company brought back Grimace, Ronald McDonald's giant purple monster friend, to stoke nostalgia and get people talking.
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That worked in a sense, as people certainly are talking, but perhaps not the way the chain intended. Wendy's (WEN) and Yum Brands (YUM) Taco Bell can't tap nostalgia the way McDonald's can. Neither chain has a family of beloved characters.
Wendy's has Dave Thomas's daughter which it takes its name from, but she hardly touches the same nostalgic vein as Grimace, Hamburglar, or Mayor McCheese. Taco Bell has Pete Davidson, but he's a newer character who certainly doesn't count as nostalgia.
Because they lack the same history as McDonald's, Wendy's and Taco Bell have had to do different things to reach customers. One of those has been doing something McDonald's has not done well since its $1 Menu days, offering clear branded value.
That's an area where Wendy's has been a leader with its 4 for $4 where customers get a burger, fries, a 4-piece chicken nugget, and a drink for $4. The chain also offers its $5 Biggie Bag, a similar offer that comes with a choice of sandwich.
Now, Taco Bell has brought back its answer to the $5 Biggie Bag: the $5 Cravings Box.
Image source: Taco Bell
Value Has Been a Key Strategy For Taco Bell
Taco Bell has been trying to compete in the premium space by offering burritos to answer what Chipotle (CMG) offers while also being a value player. That's something Yum Brands CEO David Gibbs talked about during the chain's first-quarter earnings call.
"Taco Bell first-quarter system sales grew 12%, led by 8% same-store sales growth and 6% unit growth," he said. "These incredible results build on years of sustained top-line strength as the team executes on its consistent growth formula, which leverages the combination of brand buzz with unparalleled value offerings, mass occasions, and digital initiatives."
He went on to explain the strategy in greater detail.
"This quarter, Taco Bell created customer buzz around crave-able product offerings that included the Crispy Melt Taco and the Grilled Cheese Burrito while still providing everyday value through $2 burritos on the Cravings Value Menu. Strong demand for the Grilled Cheese Burrito is a fantastic example that proves Taco Bell can win in the big burrito category and participate in higher price points while maintaining value leadership," he added.
Basically, Taco Bell had higher-priced, novel items for customers that wanted them and cheaper value offerings for people looking to save money. That's the logic behind the returning $5 Cravings Box.
Taco Bell Brings Back $5 Cravings Box
The $5 Cravings Box serves as Taco Bell's Answer to Wendy's $5 Biggie Box. It's a large variety of food at that price point.
"Taco Bell's returning $5 Cravings Box (price may vary) includes a Chalupa Supreme, Crunchy Taco, Beefy 5-Layer Burrito, Cinnamon Twists, and a medium fountain beverage," Brand Eating reported. "It represents an excellent value as getting the same items in an already-discounted Build Your Own Cravings Box costs $6.99 (may vary) and doesn't includes the Beefy 5-Layer Burrito."
The chain has not shared how long the $5 Cravings Box would be back for.
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