Dec 9, 2024, 12:00 AM
Dec 9, 2024, 12:00 AM

Taco Bell's new restaurant ignores food focus, is this the future of dining?

Highlights
  • Taco Bell has opened the Live Más Café in San Diego, focusing on beverages rather than traditional food items.
  • The menu features various drinks, including milkshakes and a signature soda trend, catering to a younger audience.
  • This new café concept is part of Taco Bell's strategy to expand its offerings in the rapidly growing beverage market.
Story

In recent developments in the United States, Taco Bell has launched a new restaurant concept called Live Más Café in San Diego, designed to shift its focus from tacos to beverages. This prototype resembles McDonald's CosMc concept, which targets younger consumers with specialty drinks and snacks. The Live Más Café features a menu that includes milkshakes, coffees, fruity iced drinks, and a take on the popular 'dirty soda' trend using Taco Bell's signature Mountain Dew Baja Blast. The introduction of this café underscores Taco Bell's strategic move to tap into the beverage segment, which has seen significant growth in the restaurant industry over the past two years. R.J. Hottovy, the head of analytical research at Placer.ai, noted that many quick-service restaurants recognize the potential in beverage offerings. As beverage-focused chains like Starbucks and Dunkin’ dominate the market, Taco Bell's endeavor seems timely. The café aims to attract a younger demographic and expand its customer base, which is essential for maintaining growth in a competitive market crowded with beverage chains such as Dutch Bros, Swig, and Scooter's Coffee. Taco Bell's recent history suggests a successful track record, outperforming sister brands KFC and Pizza Hut within Yum Brands' portfolio. The company reported a 4% increase in same-store sales in its latest earnings quarter, driven by strong sales of new offerings like a value meal and the Big Cheez-It. This successful performance is likely encouraging corporate decision-makers to explore innovative concepts like the Live Más Café. The Live Más Café was developed in collaboration with Diversified Restaurant Group, one of Taco Bell’s largest franchisees, which previously assisted in the creation of Taco Bell's popular Cantina concept. As Taco Bell integrates these new beverage-focused outlets into its business model, it showcases its commitment to evolving within the fast-paced restaurant industry landscape and highlights its ambition to disrupt established beverage chains while catering to changing consumer tastes.

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