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Taco Bell is latest chain to offer a dollar menu

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Taco Bell Corp. is competing with McDonald’s at its own game -- the $1 menu.

The Mexican food chain, based in Irvine, launched its new Dollar Cravings menu Monday, featuring 11 items to lure young, deal-seeking diners to its drive-throughs.

Targeting millennials, who have scaled back visits to quick-service restaurants in the past few years, the taco chain teased the new menu Friday on the mobile application Snapchat. The company said millennials drive 50% of the chain’s transactions.

Kevin Burke, a restaurant industry analyst at Trinity Capital, said Taco Bell is “at forefront of social media” and has had success gearing its products and pricing to young, thrifty consumers.

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Taco Bell, owned by Yum Brands Inc., tested the dollar menu last year after McDonald’s began offering a Dollar Menu & More, and Wendy’s unveiled its Right Price Right Size menu with items from 99 cents to $1.99.

Taco Bell’s dollar menu features spicy tostadas, triple layer nachos and shredded chicken quesadillas, as well as sweet items like cinnamon twists and caramel apple empanadas.

Known for its recession-friendly 79-cent tacos, Taco Bell has been tinkering with its menu to attract new customers. It started a breakfast menu in March, and last month launched a protein-heavy menu to cater to healthy eaters.

Last week the company opened its first fast-casual taco concept, U.S. Taco Co., in Huntington Beach to expand outside the fast-food market and compete with Chipotle.

“They have the ability to reach a number of customers at different price points with quality items where burger chains can’t,” Burke said.

Follow @bri_sacks for food-biz news

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