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Viewing report
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Restaurant Research LLC Taco Bell Concept Benchmark Analysis
Restaurant Research, LLC, Jan 2011, Pages: 11
Analysis of the Taco Bell restaurant concept provides readers with unique data and insight into this leading brand.
Taco Bell continues to leverage a business model that is right for the times – specifically, abundant value offered by the largest national Mexican player in the game. Mexican food works well for Taco Bell because it mixes and matches so easily – this allows the brand to constantly improvise with a seemingly endless supply of LTO news to drive traffic. Low prices? Gut filling abundance for cheap money? Nobody does it better
Further, the brand’s marketing and advertising works well enough to compensate for middling customer rating scores (after all this is not exactly gourmet health food). A new breakfast program represents the chain’s largest unknown in our opinion.
The key is to expand dayparts for a lunch and dinner only brand so that unit economics become more compelling. But breakfast is never easy to do in a crowded marketplace where the competitors have such a monumental lead and we expect that Taco Bell will need a lot of time and patience to get this important endeavor correct. Finally, an ongoing remodel program should help bolster the brand even if it will cost franchisees at a time when expenses are increasing faster than sales.
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