For those craving a Mexican-inspired burrito breakfast, Taco Bell will soon be your go-to spot. The restaurant chain will permanently launch a breakfast menu starting late 2011 or 2012. With more than 5,600 quick service locations, the new line will compete in a vicious fast-food breakfast war that has taken on new fronts in the last few months.
Just recently, Subway launched a line of breakfast sandwiches. McDonald's, Starbucks, and Dunkin Donuts reshaped and re-priced their options. Burger King recently partnered with Seattle's Best to expand their coffee options in Canada, and even Hardees joined the breakfast war. The trend to target the morning rush of customers on the go is not easy. Wendy's has carried out many breakfast tests and all have failed in terms of quality and profitability, bringing executives back to the drawing board.
However, industry analysts say that Taco Bell has an advantage - its Mexican theme. Taco Bell will offer customers an international-inspired breakfast option; something that other chains like McDonald's or Starbucks don't specialize in. Taco Bell has tested breakfast options in Arizona which accumulated an increase in sales . Mark Kalinowski told NACS Online that when he visited this test site, the breakfast menu focused on a "higher flavor profile and/or food quantity."
The new breakfast menu is still in the making and will apparently take a year or two of research and testing to launch the ideal line to satisfy customers. Some breakfast items will be double-ham-and-cheese melt, sausage burritos, potato and cheese roll ups, and hash browns. The menu will be a mix of mid-priced items and inexpensive food options, some even priced under a dollar. Taco Bell will partner with Seattle's Best Coffee, Jimmy Dean sausages, Cinnabon Delights, and other brands to expand its breakfast line.
WalletPop contacted Taco Bell for additional information and has yet to receive a response. Sales at Taco Bell restaurants that still serve the older breakfast version will be recorded for testing purposes. If annual sales per location is increased by $65,000 or $70,000, then Taco Bell will launch the new breakfast menu nationwide.
Learn the most important step in structuring an investment portfolio.View Course »