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Taco Bell is testing a new cafe focused on its drinks

  • CNN
  • December 9, 2024
New York

CNN

 — 

Taco Bell is testing a new restaurant that isn't focused on tacos.

The newly opened concept in San Diego is called the Live Más Café, featuring a beverage-centric menu that includes milkshakes, coffees, fruity iced drinks and a take on a dirty soda trend with its trademark Mountain Dew Baja Blast.

The prototype resembles a CosMc's, the year-old, McDonald's-owned concept that leans heavily into specialty beverages and snacks targeted at younger customers. For Taco Bell, the cafe marks an entrance into a category not only dominated by stalwarts like Starbucks and Dunkin' but also by quickly expanding chains Dutch Bros, Swig and Scooter's Coffee.

"Taco Bell, like a lot of quick-service restaurant brands, recognizes the large opportunity in beverages," according to R.J. Hottovy, head of analytical research at Placer.ai. "Beverage chains have been among the fastest-growing chains in the restaurant industry from a visitation standpoint the past two years." He told CNN that beverage-led concepts attract younger consumers, and it could be a way for Taco Bell to "expand and diversify its audience."

Taco Bell said in a statement that the new model is its "plan to disrupt the beverage industry" and features an "innovative" lineup that has become a larger part of the company's focus. In the past few years, it has added frozen coffee and shakes called Chillers; Agua Refrescas, a green tea-based drink with fruit pieces; and new cold brew coffee options in partnership with Beekeeper, all of which are on the café's menu.

Customers at the Live Más Café order via kiosks.

From Taco Bell

Taco Bell is the strongest performer of Yum Brand's portfolio and often outperforms sister brands KFC and Pizza Hut. The chain reported a 4% increase in same-store sales in Yum's most recent earnings quarter, buoyed by popular menu items like a new value meal and the Big Cheez-It.

Live Más Café was created with Diversified Restaurant Group, one of Taco Bell's largest franchisees with nearly 400 locations, which also helped create its popular Cantina concept a few years ago.