Dive Brief:
- Del Taco debuted its Del’s Real Deal$ value menu on Thursday with 15 items priced at $2 or less, the company said in a press release.
- The menu includes existing items like tacos, burritos, nachos and snacks plus a new product: snack-sized chips and housemade guacamole.
- This value menu could help drive traffic after the chain reported a same-store sales decline of 1.4% during fiscal Q2 2024. That decline was largely due to transaction declines that were offset by price increases, said Brian Scott, CFO of parent company Jack in the Box during the chain’s May earnings call.
Dive Insight:
As restaurants continue to roll out value menus, Del Taco is looking to stand out from the crowd by offering a significant number of items under $2. Comparatively, several items on Taco Bell’s Craving’s Value Menu, which it updated in January, are over $2.
The move underscores the drive among restaurants to offer eye-grabbing deals that connect with price-sensitive shoppers. Earlier this month, Sonic unveiled a permanent $1.99 value menu.
Value menus aren’t new at Del Taco, but they’ve so far been limited-term offers. Last year, the chain offered limited-time value options like $5 Del’s Deal Value Meals, which offered combinations of different tacos and burritos with fries and a drink. Last July, it introduced three Grilled Chicken Taco Packs starting at $5.
In March, the chain added a limited time offer of 2 for $3 Crispy Tacos and Egg & Cheese Breakfast Rollers.
Menu innovation is also part of Del Taco’s strategy to boost traffic. In May, the company brought back shredded beef birria with the launch of a Birria Grilled Combo Burrito. It also brought back nacho cheese after 12 years as well as Funnel Cake Fries.
Promoting value is an ongoing strategy at both Del Taco and parent company Jack in the Box. Earlier this year, Jack in the Box rolled out its Munchies Under $4.
“We're promoting value more so that our customers know that they'd have that option,” Scott said during the chain’s earnings call in May.
These initiatives have been a key focus for Del Taco President Tom Rose, who was appointed to the role in September, and Sarah McAloon, who was appointed senior vice president and chief administrative officer last year.
The chain has been testing a menu simplification strategy, which has already led to improvements to sales, speed of service and margins. It has also been testing kiosks, which increase ticket size and lower labor costs, Jack in the Box CEO Darrin Harris said during the May earnings call.
