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In the three months ending June 30, sales at US Taco Bell locations that had been open for at least a year went up by 8%. During that time, Taco Bell sold more than 20 million Mexican pizzas all over the country and saw its loyalty programme grow by 10%. This was mostly because customers wanted to get the product early.
The Mexican Pizza craze was important for Taco Bell because it brought the chain more attention.
During an analyst call on Wednesday, David Gibbs, CEO of Taco Bell’s parent company Yum Brands (YUM), said that the Mexican pizza is good because it connects with customers and gives the brand a “halo.” “It’s not just about the sales, but also about the buzz it creates and how relevant it makes our brand.”
Taco Bell got rid of the popular item, which was pizza sauce with ground beef or beans in between two crispy tortillas. They did this in November 2020, when they cut down their menu to make things easier to run during the pandemic. In May, Mexican pizza was back for a limited time, but it sold out very quickly. Gibbs said that some places ran out in less than a week.
In the fall, Taco Bell plans to put the item back on the menu for good. At that point, “we will get a real boost in sales that could be worth a couple of points,” said Gibbs.
Buzz is important for fast food companies because they have to compete with customers who change their minds often and don’t have much brand loyalty. People might choose to go to Taco Bell instead of one of its competitors if they are excited about a certain item.
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And when something works, it can change a lot. Think about the spicy chicken sandwich from Popeyes. The much-talked-about item sold out two weeks after it was put on the menu. When Popeyes brought it back, it helped the brand’s sales.
Now, when some customers are cutting back on spending because of inflation, it’s even more important to stand out with unique products or promotions.
“For us to win in any situation, we need a lot of brand buzz, news about our products, and great value,” he said. There are also cheaper options like $2 burritos and Mexican pizza “Taco Bell had a great quarter overall. “Other Yum brands, on the other hand, didn’t do as well. Same-store sales in the US fell 7 per cent for KFC and 4 per cent for Pizza Hut during the quarter.
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