"New York (CNN Business)Taco Bell is rolling out what's arguably the tastiest subscription service yet: daily tacos. For $10 a month, Taco Bell customers can get one taco per day for 30 consecutive days. The national program, called Taco Lover's Pass, is available to purchase beginning Thursday for members of its rewards program and have downloaded the Taco Bell app.
A variety of tacos are included in the subscription, including a soft taco, spicy potato soft taco, crunchy tacos and its Doritos tacos. Once a customer subscribes to it, a special section within the app is unlocked and customers can add a taco to their cart during the checkout process.
The Taco Lover's Pass is only available in the Taco Bell app. The Taco Lover's Pass is only available in the Taco Bell app. Taco Bell tested the program in September 2021 in Tucson, Arizona. The chain experimented with a price point between $5 to $10 and said in a release that it grew its rewards program by 20%. The Doritos Locos Tacos Supreme was the most redeemed taco.
Subscription services are more common for streaming, but restaurants have also experimented with them. This week, Sweetgreen announced a $10 discount program that lets customers get $3 each order for a month. Panera has an $8.99 monthly program that lets customers get a free hot or iced cup of coffee every day.
Taco Bell likely hopes the trial turns casual customers into regular customers and increase enrollment in its loyalty program. The idea is to lure people in with a free taco and hope they add more to their order and increase the amount they spend at the restaurant. It also gives restaurant owners information about ordering habits that help target diners with customized deals.
Yum Brands (YUM), which owns the taco chain, said last year that it's aiming to grow digital sales with more exclusives. App users enrolled in its loyalty program spend 35% more compared prior to joining, it said."
1. "This is pretty smart." In response to Reply # 0
I mean, they should probably make it $4.99 rather than $10 just for the psychological purposes of the price itself...but who in the hell is going to hit Taco Bell EVERY day for ONE taco?
More likely someone uses this like 15x a month to start and then forgets about it. They'll also absolutely buy more shit.
Taco Bell sucks, but at least this is a financially viable thing unlike MoviePass or wahtever.
2. "Yep. The price is debtable, but the strategy is on point" In response to Reply # 1
I hit up a TB about once every 2-3 months at best, so it's definitely not for me. But it's an interesting strategy for the industry. I expect to see some sort of tweaks, or possibly a tiered pass develop over time.
The article also cites a coffee pass from Panera. It's an intriguing loss leader strategy that likely won't amount to much of a loss, if at all, for the pass itself.
I fully expect to see more of this in the near future. This could the 2022 Chicken Sandwich War.
As for Movie Pass, that didn't pan out, but it lead to theaters creating their own subs. I have Cinemark sub and have for a few years. the tickets and 20% concession discounts are more than worth the cost, and I assume that it's a profitable strategy since they had it for some time now.
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