A subscription service … for tacos?
It could happen. This week, Taco Bell (YUM) announced plans to test a Netflix-like 30-day subscription service on a 17-location pilot in Arizona, through the end of November.
Called the “Taco Lover’s Pass,” the price of the plan ranges from $ 5 to $ 10 (depending on the user’s location) and will be offered exclusively to your app. Once purchased, a hidden menu will be unlocked that will allow customers to change one tac a day for 30 days.
So can a seemingly excessive idea work in a world where consumers are constantly being asked to pay a fee for streaming content?
“It makes a lot of sense,” BTIG restaurant analyst Peter Saleh told Yahoo Finance. He explained how the service drives traffic to the app, captures customer data, leads to more frequent purchases, and brand loyalty.
“Overall, I think if you’re buying this pass, whether it’s $ 5 or $ 10, I think you’ll feel compelled to go there more often,” Saleh explained.
“And we know that loyalty guests come back two to three times more often than non-loyal ones and spend between 25% and 30% more,” he added.
Fast food loyalty programs have exploded in recent years, with Saleh noting that “almost every concept” now uses one. It’s a way to encourage repeat visits in a world where there is no shortage of options and where restaurants have had to fight for on-foot traffic in the pandemic era, with limited in-store meals and more consumers working from home.
Burger King (QSR) rolled out its app-based loyalty program nationwide earlier this month, joining competitors such as Starbucks (SBUX) and McDonald’s (MCD) that have aggressively embraced the digital revolution in a landscape transformed by COVID-19.
“It’s an effort to differentiate yourself and find a different way to attract new customers, while keeping the customers you have more often,” Saleh told Yahoo Finance.
“There’s a real struggle for customer traffic out there and you have to find ways to be creative and different from your peers. I think this is a way for Taco Bell and Yum! Brands to do it,” the analyst added.
Fast food giants accept celebrity associations
Another emblem of the fast food experience are the big name associations. Last month, Taco Bell announced that Grammy-winning artist Lil Nas X would become responsible for the restaurant chain’s impact, the latest in a series of collaborations between restaurant chains and stars in list A.
McDonald’s was the first to commit to celebrity deals. The fast food giant’s signature order campaign has been hugely successful thanks to partnerships with rapper Travis Scott, the Korean pop band BTS and now The Saweetie Meal, which includes the hip artist’s favorite menu items -hop and the “Saweetie ‘N Sour” sauce.
Meanwhile, Burger King announced its commitment to deliver “real food,” banning 120 artificial ingredients. To promote the new campaign, the burger chain introduced “Keep It Real” meals. Created by celebrities, the meals use real celebrity names instead of their best-known stage names. Associations include Nelly, Brazilian singer Anitta and TikTok sensation Lil Huddy.
“I see this following the leader,” Saleh said.
“McDonald ‘s has been doing this for [awhile] and it has worked very well, so you see how others are accumulating. No one wants to be left behind. It’s hard to find something that resonates and works to drive traffic … I think this will be a trend until they find something else that works, “he continued.
Still, Saleh warned that “in the end you will run out of celebrities to use it,” explaining that the menu and food innovation remain key to growth.
“But right now, with restaurants that have little manpower, they have to limit the amount of innovation and find different ways to attract customers and use their marketing tools in a different way,” he said. ‘analyst.
Alexandra is a production and entertainment correspondent at Yahoo Finance. Follow her on Twitter @ alliecanal8193
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