Dive Brief:
- Taco Bell debuted a lineup of beverages called Refrescas nationwide Thursday, according to a press release.
- The chain also will expand its beverage concept, Live Mas Café, to 30 locations in Southern California and Texas by this fall after initially testing the concept inside a Chula Vista, California, location.
- These initiatives are part of the chain’s long-term strategy to reach $5 billion in beverage sales by 2030.
Dive Insight:
Taco Bell’s beverage expansion is in line with an ongoing trend among QSR chains looking to boost sales and traffic and appeal to Gen Z consumers. McDonald’s is testing an expanded beverage menu later this year that will include many items inspired by its soon-to-be-defunct CosMc’s concept. Late last year, Jollibee expanded its lineup with a permanent beverage menu called Signature Sips.
“We’re seeing today that people, especially younger consumers, are reaching for refreshing drinks as part of their lifestyle, whether it's for energy or a sweet treat throughout the day,” Liz Matthews, Taco Bell's global chief food innovation officer, said in a statement.
The new lineup includes three refreshers, two energy drinks and a Freeze. The refreshers, which the company also refers to as Agua Refrescas, will join the permanent beverage menu, the company said. These drinks were previously tested in Southern California last year and received positive feedback from consumers.
Additionally, Taco Bell is in the process of opening more Live Mas Cafes in select Taco Bell restaurants in Southern California, as well as in Dallas and Houston. Several of the locations will launch in partnership with franchisee Diversified Restaurant Group, which operates stores that piloted the concept earlier this year, while the other locations are company-owned.
The cafes provide over 30 customizable drinks from Churro Chillers to Refrescas and Dirty Mountain Dew Baja Blast Dream Sodas.
Taco Bell experienced a 40% sales lift during the first quarter and saw guests buying 300 specialty drinks on average daily, parent company Yum Brands CEO David Gibbs said during an earnings call.
