Dive Brief:
- Del Taco added two burritos to its Real Deal$ value menu, the brand said Thursday. The brand’s Bean, Rice and Cheese and Chipotle Chicken burritos are now part of the value lineup, as are several large value bundles.
- The chain is also bringing back its boba-based drinks, which it calls poppers, with a new lineup of three beverages available for a limited time.
- The Real Deal$ menu debuted last June and featured 15 items priced at $2 or less, marking the taco chain’s major value play that year. The new burritos, however, are priced between $2 and $3.
Dive Insight:
Del Taco’s value menu additions are an early signal that the value war of 2024 has not ended, and many brands are likely to step up their value plays in early 2025, as consumers remain price sensitive and wage growth remains anemic when adjusted for inflation.
Despite its value menu, Del Taco has struggled with generating sales momentum in the last year, according to an earnings release from the brand’s parent company, Jack in the Box. Same-store sales fell 1.5% at the taco chain throughout the fiscal year, with a 3.9% year-over-year decline in fiscal Q4, driven both by falling traffic and a shifting menu mix — Del Taco raised prices, but this did not fully offset the slide.
Jack in the Box CEO Darin Harris said on the chain’s November earnings call that the company plans to emphasize menu updates at Del Taco, both for value items and more specialized premium items. Harris also said the brand’s value messaging may be starting to succeed, with transactions at Del Taco improving throughout Q4.
The brand will offer three value bundles, priced at $10, $15 and $20. Del Taco said the smallest bundle can feed one or two people and the largest can feed up to five.
In addition to strengthening its value proposition for some consumers, Del Taco is making a play for younger consumers with its premium drink LTOs. Consumers can order the Dragonfruit Blueberry poppers mixed with Sprite, lemonade or the brand’s vanilla shake.
Boba-based LTOs are a common competitive play for companies looking to draw younger consumers in with buzzy, visually striking beverages. Starbucks put boba pearls in some of its refreshers last summer, for example, and McDonald’s beverage-focused test concept, CosMc’s, has a number of boba beverages available.
