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Taco Bell testing alcohol, redesign: Is it rebranding as fast casual?

Taco Bell is testing test beer, wine, and “mixed alcohol freezes” this summer in a redesigned store format.

June 8, 2015 by Lon Southerland — Executive Vice President, GuestMetrics, LLC.

Taco Bell is testing beer, wine, and “mixed alcohol freezes” this summer in a redesigned store format. You know, it may be on to something. It's not the first limited service to offer booze, of course, but it is one of the larger chains to test it.  The chain’s parent company,  Yum Brands, announced this month that one of its franchisees will test the new design and layout in Wicker Park, Illinois. Renderings reflect a contemporary, yet warm and approachable environment. The new design looks more fast casual than QSR.

It will be interesting to see if this new format rings the bell for consumers. I remember a few late nights in college studying for exams at my local Taco Bell.  Alcohol certainly would have added a whole new destination proposition for the PM day-part at the time.

Test and Learn

When it comes to competing in today’s “survival of the fittest” marketplace, testing the waters with one’s current and future customer base is a must. The proactive process of “test and learn” is critical for proving concepts and working out the kinks prior to scaling line extensions, platforms, and products. Solid business intelligence and analytics covering product sales, demographic trend analysis, and market environment will help validate the concept’s viability. I see how it helps with proactively navigating through the unpredictable waters. It is really interesting helping restaurants get their arms around massive amounts of big data.

Taco Bell has already rolled out several of these concepts internationally in Japan, South Korea and the UK. The limited-service segment serving booze from an entirely different, more evolved format is noteworthy, but is this really unexpected given what we’ve seen recently? Think of the success at AMC Theatres with its MacGuffins Bar & Lounge or Marriott International’s Bistro: eat.drink.connect concept in the Courtyard brand. Taking the lead through creative re-invention can enhance a brand and even cause it to blow up and turn around an industry segment. During my time with Starbucks, we came to realize that customers do not want the cookie-cutter approach with store designs that are mirror images of a handful of similar schematics and color palettes. they prefer unique, authentic differentiation, such as when a concept “melds” into an existing space, taking on the character and ambiance it resonates as well as “Yo Quiero Taco Bell” (Yes, I’m guilty — I really do miss the Chihuahua). This approach is refreshing and certainly facilitates an even more “local” feel—a very good thing in my opinion.

Taco Bell also recently announced that it plans to remove artificial colors and flavors from most products (“Doritos Locos” exempt).  Present-day foods moving to cleaner labels with ingredients that we recognize, sounds old-fashioned, but that’s a trend that we can count on—a conversation for next time. What do you think? I’d love to know what’s important to you, let's chat in the comments! I'll meet you there!

Photos: Taco Bell Corp. via Associated Press

About Lon Southerland

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