Dive Brief:
- Taco Bell has added delivery as a permanent feature to its rewards app as of Friday, the company announced Thursday. Fire Tier rewards members will first have access to the channel Friday through Sunday.
- The chain offers the channel through a partnership with DoorDash, according to Taco Bell’s delivery FAQ site. The terms of the partnership weren’t disclosed in the company’s public statements.
- Taco Bell has recently tested ways to increase engagement and drive digital sales via its mobile app, including its Taco Lover’s Pass subscription program, which the chain has offered multiple times for limited periods.
Dive Insight:
Pizza Hut, which is also owned by Taco Bell parent company Yum Brands, has seen its first-party delivery capacity strained by labor shortages and is increasingly reliant on third-party delivery to meet demand, Yum CFO Chris Turner said on its Q3 earnings call. By integrating with DoorDash’s white label fulfillment platform, DoorDash Drive, Taco Bell can offer in-app delivery without stretching labor resources.
DoorDash wrote in an email to Restaurant Dive that the deal follows “several months of partnership between Taco Bell and DoorDash to streamline operations and communication between store operators and Dashers, including piloting in select markets.”
Taco Bell is promoting the service with a pair of limited-time offerings for rewards members, with all loyalty members eligible for free Nacho Fries with delivery orders between Nov. 7 and Nov. 13.
Those in the Fire Tier of the company’s loyalty program, which includes those who earn more than 2,000 points at 10 points per $1 spent, get $5 off in-app delivery orders between Nov. 4 and Nov. 6. Taco Bell’s offerings are meant to entice customers to try the delivery program, which the chain sees as part of its digital future.
“The service is here to stay as a long-term, permanent investment from the brand that prioritizes its fan experiences inside and outside of its restaurants,” Taco Bell said in a press release. The company has been working to boost the membership of its loyalty program, which launched in the summer of 2020, to boost digital ordering.
Limited-time offerings like the Taco Lovers’ Pass have led to an increase in new rewards members at Taco Bell. The chain has devised other methods for engaging customers digitally, with app customers gaining access to some menu items removed from store menu boards, like the Quesarito. Taco Bell has also offered its fans the chance to vote on which popular menu items would return temporarily.
