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Diving certificate:
- Taco Bell will give its franchisees the option to stop offering breakfast starting in October, the brand confirmed in an email to Restaurant Dive.
- The brand said the change was part of a strategy to give franchisees “the flexibility to focus on key growth drivers” and that only a small minority of franchisees were expected to exit the program.
- Taco Bell is sticking to its breakfast-day schedule, the brand said. All locations will open at 9 a.m. or earlier, regardless of whether they serve breakfast. All company-owned restaurants will continue to serve breakfast.
Diving insight:
Breakfast sales improved throughout the second quarter, although the brand did not say how much breakfast represented in its overall sales mix. Executives mentioned breakfast in Yum’s recent conference call on quarterly resultsTaco Bell US was the Yum brand’s standout performer last quarter, with like-for-like sales up 5%, while all other Yum US business units saw like-for-like sales decline.
Much of Taco Bell’s strength was due to its low-cost offerings and Cantina Chicken MenuTaco Bell said the decision to allow franchisees to serve breakfast would allow operators to focus on peak daytime hours.
“Franchisees have expressed their appreciation for the gesture, saying they feel their needs are being heard to adjust their menu to better meet the desires of their community, while others said they look forward to focusing on other times of day such as lunchtime and the new Cantina Chicken menu,” Taco Bell said in the statement.
The company said it is also “expanding its coffee program” and testing new breakfast products.
This is the first time that the chain has given its franchisees the opportunity to eliminate parts of the menu, the brand said. Taco Bell launched Serving breakfast in 2014and contributed to long-term growth in the brand’s in-store sales. Years before the pandemicIn 2023, Yum expanded Taco Bell’s opening hours and saw growth in both late-night and Breakfast Timesin line with the broader QSR efforts, unconventional times of day to help brands prepare for the decline in customers during peak business hours.
