Taco Bell has launched a new concept in San Diego, marking a departure from its taco-centric menu. The Live Más Café is a beverage-focused restaurant offering milkshakes, coffee, fruity iced drinks, and a twist on the popular “dirty soda” trend with its signature Mountain Dew Baja Blast.
This new venture mirrors a trend in the quick-service restaurant (QSR) industry, notably seen in McDonald’s CosMc’s concept, which also emphasizes specialty beverages and snacks targeted at younger consumers. Taco Bell’s move into this beverage space puts it in direct competition with major players like Starbucks and Dunkin’, as well as fast-growing chains such as Dutch Bros, Swig, and Scooter’s Coffee.
According to R.J. Hottovy, head of research at Placer.ai, Taco Bell’s entry into the beverage sector reflects a broader industry shift. “Beverage-led chains have been among the fastest-growing in terms of customer visits over the past two years,” Hottovy said. He added that these concepts tend to attract younger demographics, potentially helping Taco Bell diversify its customer base.
Taco Bell emphasized its intent to “disrupt the beverage industry” with its innovative new offerings. Over the past few years, the brand has expanded its drink menu to include frozen coffees, shakes called Chillers, fruit-infused Agua Refrescas, and cold brew coffee options in partnership with Beekeeper. These items are featured at the Live Más Café, further solidifying the brand’s focus on drinks.
As the top performer in Yum Brands’ portfolio, Taco Bell has outpaced sister brands KFC and Pizza Hut. The chain recently reported a 4% increase in same-store sales, driven by popular 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 successful Cantina concept. With nearly 400 locations, Diversified Restaurant Group is helping Taco Bell explore new ways to engage customers beyond its traditional taco offerings.
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