Over the last few years, consumers have become more conscious of their spending habits, scaling back on spending their hard-earned money on unnecessary things due to inflation and the unpredictable economy.
This is especially true when it comes to dining out, which has financially hurt the restaurant industry, leading many once-popular restaurant chains to close their businesses or file for bankruptcy.
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However, this trend has a few outliers, and one seems to outdo them all.
Taco Bell has become incredibly successful due to its insanely low prices and great deals that focus on value, which is a huge selling point for today's consumer.
Related: Taco Bell launches new menu item customers can crunch
The fast food chain has prioritized fostering innovation by constantly developing and launching new menu items, helping it to experiment and stay relevant among consumers.
“People love our brand because we do things differently,” said Taco Bell CEO Sean Tresvant. “But we also mean business; we have a strong strategy that keeps our consumers and restaurant teams top of mind. The bold swings will only get bigger as we continue to chase greatness," he added.
Taco Bell
Taco Bell unveils its R.I.N.G. plan to propel growth in its business
On Tuesday, Taco (YUM) unveiled its Relentlessly Innovative Next-Generation Growth (R.I.N.G.) plan, focusing on menu innovation and enhancing its digital sales experience.
This business strategy aims to increase its U.S. average unit volume (AUV) from $2.2 million last year to $3 million and expand its brand recognition internationally by tripling its current store count. The fast food chain plans to accomplish these goals by 2030.
However, Taco Bell has already begun implementing multiple strategies in its business to reach these goals.
Related: Taco Bell makes viral move young customers will love
Last year, Taco Bell launched its 'Cantina Chicken Menu' and recently added its new 'Caliente Chicken Cantina Menu' with a new Jalapeño Sauce as an extension to the original lineup. The company intends to generate $5 billion in system sales with these new offerings.
In 2024, the fast food chain also opened its first Taco Bell Live Más Café location in Chula Vista, California, with an extensive new menu featuring specialty beverages and trendy snacks to attract the Gen Z audience. With this beverage expansion, the company intends to reach another $5 billion in system sales.
Although the U.S. is one of Taco Bell's best clients, it wants to expand its brand recognition internationally and elevate its market share by more than tripling its current store count over the next five years to reach 3,000 international units.
Taco Bell will also prioritize technology to make its Taco Bell Rewards program a more seamless and efficient platform for customers as well as to ensure digital platforms enable all digital transactions.
The company has already begun investing in this goal through its integrated tech platform, Byte by Yum system. Byte contains various AI tools to power its online ordering, point of sale, and back-of-house technologies. This investment aims to add $225,000 in AUV by 2030.
Taco Bell reveals it is on track with its growth goals
Although Taco Bell has incredibly high growth expectations, which may seem unattainable to some fast food chains, the company has been outperforming the average fast food category for years.
In its latest reported earnings, the fast food chain has proven that it is on track to accomplish its goals by 2030 since it has been implementing various strategies from its R.I.N.G. plan over the last few quarters.
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Last year, Taco Bell reached a record-breaking $1 billion in operating profits, grew its digital sales by 32%, and opened 347 new locations across 25 countries.
This year, Taco Bell will release twice as many new menu items as it did last year and grow its value offerings by 5%, hoping to up its same-store sales.
Taco Bell's parent company projects that same-store sales will increase by 8% in the first quarter of 2025.
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