Taco Bell Puts New $1 Menu to the Test

by Nate Wooley | January 14, 2013 10:04 am

[1]Taco Bell, owned by Yum! Brands (NYSE:YUM[2]), is testing a new, cheaper menu in two cities.

The Mexican fast food chain is testing the $1 menu in Fresno, Calif., and Knoxville, Tenn., the Associated Press reports[3]. Testing began in October and will continue for several more months. A decision will be made later about rolling out the menu nationally.

The “$1 Cravings Menu” contains nine items, three of which are new to the chain: a spicy chicken mini-quesadilla, a spicy cheese roll-up and a beefy cheese burrito. All are smaller than the chain’s typical menu items.

The menu was developed to allow customers to feel they have choice regarding whether to order from a specific discount menu or not. The company has split the menu into five basic “cravings,” beefy, cheesy, spicy, crunchy and sweet.

The new approach should also allow Taco Bell to more directly compete with McDonald’s (NYSE:MCD[4]) Dollar Menu.

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Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/10/taco-bell-redesign-yum-brands-630.jpg
  2. YUM: http://studio-5.financialcontent.com/investplace/quote?Symbol=YUM
  3. the Associated Press reports: http://www.washingtonpost.com/business/taco-bell-testing-1-cravings-value-menu-in-california-and-tennessee/2013/01/11/4f0754da-5c35-11e2-b8b2-0d18a64c8dfa_story.html
  4. MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
  5. Burger King Changes Up Its Chicken: http://investorplace.com/2013/01/burger-king-changes-up-its-chicken/
  6. Taco Bell Fulfills a Teen Swimmer’s Wish: http://investorplace.com/2013/01/taco-bell-fulfills-a-teen-swimmers-wish/
  7. McDonald’s to Reintroduce Big Mac in Big Push Toward Teens: http://investorplace.com/2013/01/mcdonalds-to-reintroduce-big-mac-in-big-push-toward-teens/

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