A Taco BellKFC combo restaurant’s success can be attributed to several factors. These include cheap food and innovative marketing strategies. In addition, these restaurants can help you make more money from a single location. However, they also face some challenges.
Increased revenue from a single location
Taco Bell uses low prices in the United States to gain a competitive edge over its competitors. In international markets, the company uses the same strategy. Its low prices appeal to single parents and the general population. Moreover, it offers drive-through windows, which help customers get their food quickly. In addition, Taco Bell strategically places its stores near gas stations, stadiums, and shopping centers. This strategy attracts more customers, which leads to increased revenue.
Yum Brands, the parent company of KFC and Taco Bell, reported a quarterly profit of $458 million, or 54 cents per share (EPS). The chain reported a 6% increase in U.S. same-store sales in the second quarter. Sales at Taco Bell, KFC, and Pizza Hut also increased. Yum’s overall revenue increased by 13% to $2.7 billion.
During the pandemic, the company’s digital business proliferated. During this time, consumers embraced digital channels at an unprecedented pace. The company’s digital business has become its “new north star,” Lawson says. Lawson says the combination of priorities that the company follows will help the chain compete against other fast-food chains.
To achieve this goal, Taco Bell is expanding its online presence. For instance, it has opened more locations that exclusively offer digital orders in the United Kingdom. The brand is also opening pickup windows for delivery drivers. Taco Bell has made its business more accessible and convenient by leveraging digital capabilities. In addition to online sales, Taco Bell has franchisees around the world. Many of these franchisees have been part of Yum for decades.
Taco Bell and KFC have implemented several innovations to attract customers. Among these innovations are the Quesarito and the Power Cantina. The company is also testing mobile ordering, which will be available in Q4 2019. In March, KFC China began a marketing barrage across its largest market. As a result, same-store sales increased by 25 percent and system sales by 21 percent in China.
While it is true that the price of fast food has risen significantly in recent years, sales of popular fast-food restaurants are still strong. Some big chain restaurants are eliminating value menu deals, while others continue to offer cheap food. Inflation is a problem for the fast-food industry, as ingredients and labor are becoming more expensive. In the U.S., inflation reached 7% in December, the highest level since 1982. While Taco Bell was once one of the cheapest meal options in the industry, it raised prices by as much as 10% between 2020 and 2021.
Taco Bell has a money-saving Cravings Value Menu, which features eight items for a single low price. The menu changes periodically and is available at participating locations. The prices are listed on Mile High On The Cheap, which vettes each item and tries to keep them up-to-date. However, sometimes errors occur, so be sure to verify each offer with the establishment before making a purchase.
Taco Bell is relaunching its website and offering customers a seamless ordering experience. Customers can find their favorite products by name and read nutrition and ingredient information using the website. They can also order ahead of time, eliminating the hassle of standing in line. This innovative marketing strategy is popular with millennials, who appreciate the convenience and prompt delivery.
In the years after the COVID-19 pandemic, Taco Bell has been working to improve its business. The company announced a store-of-the-future concept in April called Taco Bell Go Mobile. It will accommodate mobile orders and feature two drive-through lanes. Additionally, it will offer contactless pickup to customers. The new marketing strategy has helped Taco Bell claw back three percent of its same-store sales decline and a ten percent increase in digital sales, according to Yum! Brands.
Another tactic used by Taco Bell to increase sales was introducing a family-sized meal pack. It also doubled the number of customers who bought more than $20 food. The company also raised its marketing budget and gave away one million tacos in the drive-through. Taco Bell also transformed its truck fleet into a mobile commissary, donating $1 million to the No Kid Hungry charity.
Taco Bell also realized the late-night eating habits of many consumers. It knew that the competition was losing breakfast revenue to late-night eaters, so it adjusted its hours and advertised late-night meals. It was also more efficient, reducing drive-thru times.
The taco chain is also integrating social media to improve its brand image. It monitors its Twitter account closely and uses Instagram to preview new menu items. It also uses Snapchat to increase engagement. It posts creative content on Instagram. Social media has enabled Taco Bell to reach a much wider audience and strengthen its brand position.
Although the cost of fast-food meals is steadily rising, consumers are still flocking to the industry. This is mainly due to inflation, which drives the cost of ingredients and labor. As of December, the annual inflation rate was 7.7%, the highest since 1982. While Taco Bell’s menu prices used to be among the lowest in the industry, the chain plans to raise prices by 10% between July 2020 and July 2021.
Yum, restaurants are gaining ground in the fast food industry by offering more variety to consumers. The Berry family, for example, has competing meal preferences: fried chicken and tacos. Combined restaurants offer both. For instance, KFC gets most of its business at lunchtime, while Taco Bell gets more business in the evening. In addition, Wendy’s gets morning traffic from Tim Hortons. The company says this has contributed to its higher same-store sales growth.
Yum Brands, the parent company of Taco Bell, KFC, and Pizza Hut, continues to expand. In the first half of 2021, Yum will open 4,180 new stores. This represents an average of one new restaurant every two hours. KFC is the fourth largest chain in the world, with nearly 27,000 locations.
The locations of Taco BellKFC combo restaurants are not standardized across the U.S. The chain has nearly 27,000 locations worldwide. In 2016, it closed one of its Poquoson, VA, locations due to health violations. In 2016, another KFC-Taco Bell combo closed. In November of this year, one of Poquoson’s locations was also closed. In addition, several locations have changed their names to Taco Bell.
Taco Bell is a fast-casual restaurant owned by Yum! Brands, an international Fortune 500 company. It also owns Pizza Hut and The Habit Burger Grill. The company has not announced an exact opening date for the first combined Taco BellKFC location, but progress is fast, and the restaurant could open by the end of the summer.