Dive Brief:
- Taco Bell is implementing a broad strategy based on menu innovation and digital sales intended to push its U.S. average unit volume to $3 million from $2.2 million last year, the chain said Tuesday.
- The chain calls its new plan the Relentlessly Innovative Next-Generation Growth (RING) plan. In addition to U.S. sales growth, Taco Bell wants to increase its international development, roughly tripling its store count outside the U.S. by 2030.
- Taco Bell predicts its U.S. same-store sales will rise 8% in Q1 2025.
Dive Insight:
Menu changes have helped Taco Bell keep ahead of QSR competitors. In March 2024, Taco Bell launched its premium Cantina Chicken menu nationwide to balance the brand’s expansion of its value menu. These moves were later complemented by the addition of $5 and $9 Luxe Cravings Boxes to accompany its $7 offering.
The RING plan intends for “Cantina Chicken Menu items to reach $5 billion in system sales and beverages to reach $5 billion in system sales by 2030, fueled by efforts like the drinks-focused concept Live Más Café,” the company said in reference to a beverage concept launched last year.
Digital tech is another major point of emphasis in the RING plan, with Taco Bell working toward “ensuring 100% of transactions are enabled by digital platforms while making Taco Bell Rewards the most loved loyalty program.”
Underpinning the digitization of its consumer touchpoints is the Byte by Yum system, an integrated tech platform announced by Yum Brands earlier this year that incorporates a wide range of tech.
But Taco Bell wants to preserve hospitality by balancing speed and accuracy with customer interactions, according to the press release.
Taco Bell, which surpassed $1 billion in operating profit last year, is a major growth driver for Yum Brands. Pizza Hut and KFC both saw same-store sales decline in the U.S. in 2024, according to Yum’s 10-K.
“Taco Bell U.S. is one of our twin growth engines,” said Yum CEO David Gibbs in the press release. “We're confident in Taco Bell's magic formula and its ability to remain a category of one and outperform the industry.”
Yum has seen considerable success in international markets for both KFC and Pizza Hut, and a significant expansion of Taco Bell’s presence outside the U.S. could follow the international trajectory of both of those brands. Yum currently has about 1,150 international Taco Bells, compared to about 7,600 in the U.S. By 2030, the chain hopes to have 3,000 units outside of the U.S.
