Taco Bell launches $5 'cravings' box as fast food races to be 'competitive on value'
Taco Bell has expanded its value menu options by launching a $5 Build Your Own Cravings Box that underscores the fast food industry's digital shift, and a need for companies to differentiate themselves in a landscape reshaped by COVID-19.
The offering, available to all Taco Bell digital customers members, allows them to choose 4 menu options (specialties, starters, sides and a drink), for a total of up to 18 potential variations.
In a press release, Taco Bell explained that it wants to "put fans in the driver's seat and allow them to eat how they want to eat." The fast food chain took a subtle dig at competitor McDonald's (MCD), whose celebrity-driven menu campaign helped bolster sales last year.
“As we see it, there aren’t a lot of choices out there when it comes to value, forcing customers to play by others’ rules. But when your fans have different favorites on the menu, why not celebrate that?” the company added.
The YUM! Brands (YUM)-owned company is among several to redouble its emphasis on giving consumers more bang for their buck. McDonald's CEO Chris Kempczinski has also signaled the Golden Arches is poised to double-down on its commitment to cheap eating.
In the company's latest earnings report, Kempczinski said it would be "a trend that continues all through 2021. Our expectation is that you're absolutely going to need to remain competitive on value."
Fast food giants like McDonald's and Burger King (QSR) are also doubling down on their digital value offerings, with the jobs market still struggling, and COVID-19 placing restrictions on indoor dining options. Back in December, Burger King debuted its “$1 Your Way Menu" that features four items: A bacon cheeseburger, Chicken Jr. sandwich, fries and a soft drink.
"I think the value offerings will last longer than a year and maybe more consistent throughout the year," Wall Street Analyst Peter Saleh of BTIG told Yahoo Finance this week, "only because I do think we have a relatively high unemployment rate...I think that is feeding into the fact that, obviously, there's a lot less people out there that have the ability to spend."
Recently, Restaurants Brands CEO Jose Cil told Yahoo Finance Live that "having an everyday value proposition is important all the time, but especially now when our guests are looking for opportunities to snack as well as to enjoy a great-tasting product at a great value." He called it a "long-term commitment" that's likely to play a role on menus for "years to come."
Shares of YUM! Brands are up 1.3% from a year ago, while shares of Restaurant Brands International are down 9.53%, alongside McDonald's down 0.62% from a year ago.
Brooke DiPalma is a producer and reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma.
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