NEW YORK — Taco Bell is experimenting with a new café concept, stepping away from its signature tacos and shifting focus to drinks.
The “Live Más Café,” now open in San Diego, offers a beverage-driven menu, including milkshakes, coffees, fruity iced drinks, and a twist on the growing trend of “dirty sodas” featuring its iconic Mountain Dew Baja Blast.
This new prototype mirrors McDonald’s CosMc’s concept, which has found success by emphasizing specialty drinks and snacks aimed at younger customers. Taco Bell’s move into this space puts it up against established names like Starbucks and Dunkin’, as well as rapidly growing chains like Dutch Bros, Swig, and Scooter’s Coffee.
According to R.J. Hottovy, head of analytical research at Placer.ai, beverage-focused chains have seen impressive growth over the last two years. He noted that these establishments particularly appeal to younger audiences, offering Taco Bell an opportunity to diversify and expand its customer base.
The company sees the Live Más Café as a way to disrupt the beverage industry, offering a fresh and innovative menu that reflects the increasing importance of drinks to the brand. Recent additions to Taco Bell’s drink lineup, such as Chillers (frozen coffee and shakes), Agua Frescas (green tea-based drinks with fruit), and cold brew coffee options in partnership with Beekeeper, are all featured at the café.
As Taco Bell remains the strongest performer within Yum Brands’ portfolio, outpacing KFC and Pizza Hut, the brand reported a 4% increase in same-store sales during Yum’s latest earnings quarter. This growth has been driven by popular menu items like a new value meal and the Big Cheez-It.
The Live Más Café was developed in collaboration with Diversified Restaurant Group, one of Taco Bell’s largest franchisees, which also helped create the brand’s successful Cantina concept a few years ago.
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