It’s not really a price war if Taco Bell isn’t involved, is it? A week after McDonald’s confirmed its $5 meal deal, Taco Bell has hit back with a new $7 Luxe Cravings Box that includes a Chalupa Supreme, a Beefy 5-Layer Burrito, a Double Stacked Taco, chips and nacho cheese sauce, and a medium drink. Like McDonald’s deal, Taco Bell’s is available for a limited time.
“With the launch of the $7 Luxe Cravings Box, we are offering consumers our most coveted items at an affordable price and delivering on our promise to satisfy fan cravings with popular, wholesome menu items,” said Taylor Montgomery, chief marketing officer, in a statement.
Notably, Taco Bell is no newcomer to the value meal conversation. The Luxe Cravings Box comes a few months after Taco Bell launched its $5 Taco Discovery Box and nearly seven months after the new Cravings Value Menu launched with a total of 10 items under $3.
“Our Cravings Value Menu is one of the most affordable menus in the industry… because we believe consumers shouldn’t have to choose between affordability and abundance,” Montgomery said.
Citing a recent LendingTree study that found that 78% of consumers now consider fast food a “luxury,” Taco Bell points out that its $7 Luxe Cravings Box offers 55% off recommended a la carte menu items, adding, “It feels like luxury without the luxury price.”
This “luxury” impression was likely created by the persistently high menu prices in the QSR segment, which significantly exceed both the full-service segment and the grocery/supermarket category. These prices began to scare away consumers – especially low-income consumers – in recent quarters, sparking the recent price war to win them back. McDonald’s and Taco Bell are by no means alone on the battlefield. Burger King, Arby’s, Subway, KFC, White Castle, Wendy’s and Jack in the Box are among the growing number of chains that are now also offering aggressive deals and bundling options.
Contact Alicia Kelso at (email protected)
