Taco Bell woos younger crowd with Live Más Café flashy beverages

Taco Bell is making a significant push into the beverage market with its Live Más Café concept, aiming to generate a $5 billion drink business by 2030. The chain, owned by Yum Brands, unveiled its first Live Más Café location in Chula Vista, California, last December, and has since opened a second location near the University of California, Irvine campus. By the end of the year, Taco Bell plans to have 30 Live Más Cafés in its portfolio across Southern California, Dallas, and Houston.

Expanding Beverage Options

The Live Más Café concept is designed to provide customers with a unique and personalized drink experience. The menu features a range of beverage options, including blended coffees, lemonade-based drinks, and specialty drinks such as churro chillers and refrescas. Customers can order at kiosks and watch the “bellristas” assemble their drinks from behind a designated counter. According to Liz Matthews, global chief food innovation officer for Taco Bell, the chain is focusing on beverages because consumers are craving unique and interesting flavors.

Taco Bell has sold over 600 million beverages so far this year, a 16% increase from the previous year. More than 60% of the chain’s orders this year have included a drink. The Live Más Café concept is expected to play a significant role in helping the chain reach its goal of generating a $5 billion drink business by 2030. The concept has been well-received by customers, with the Irvine location selling over 900 drinks per day and the Chula Vista location selling over 750 beverages a day.

Industry Trends

The fast-food industry has seen a significant shift towards beverages in recent years. Chains such as Shake Shack, Panera Bread, and Chick-fil-A are all experimenting with new and unique drink options. According to Claire Conaghan, a trendologist at Datassential, younger generations are driving the trend towards beverages, with 60% of Gen Z consumers visiting restaurants or quick-service restaurants for an afternoon treat. Taco Bell’s focus on beverages is part of its broader plan to appeal to younger consumers and increase its market share.

The Live Más Café concept is also providing Taco Bell with valuable insights into consumer preferences and behavior. The chain is using the concept as a test market to gather data on which drink options are most popular and which customizations matter most to consumers. This data will help Taco Bell refine its menu and improve the overall customer experience. With its focus on beverages and innovative menu options, Taco Bell is well-positioned for continued growth and success in the competitive fast-food market.

Breakfast and Beyond

Taco Bell’s push into beverages is also part of its plan to make a bigger push into breakfast. The chain started serving breakfast over a decade ago but has struggled to gain traction in the morning meal market. The Live Más Café concept includes a range of coffee options, which will help Taco Bell compete with other breakfast chains. Additionally, the chain’s agua frescas, which were initially introduced as part of the Live Más Café menu, have been launched nationwide and have become one of the chain’s top-selling items.

Taco Bell’s focus on innovation and customer experience has helped the chain achieve significant sales growth, despite inflation-weary consumers pulling back their spending. The chain’s prices have climbed 75.5% since 2019, but customers continue to return to Taco Bell for its unique and affordable menu options. With its strong brand and commitment to innovation, Taco Bell is well-positioned to continue its growth and success in the competitive fast-food market.