Taco Bell serves up cultural relevancy, boosting sales

Yum! Brands reported first quarter earnings Wednesday morning and the results were better than expected — mostly because of its leading brand, Taco Bell.

The chain saw an 8% increase in same-store sales, a key metric restaurants use to measure the health of a business. Executives say diners are focused on its value menu and specialty items. But there’s something else Taco Bell has been serving up that’s resonating with consumers. Dare we call it … culture?

A couple months ago, Taco Bell held its annual Live Mas LIVE event in Los Angeles. The variety show of sorts streamed on Peacock. There was a purple carpet and rapper Vince Staples hosted. Basically, a menu launch event for the influencer crowd.

Content creator lukefoods was there and posted about one item: “It is a fire queso packet you pour onto a taco, and yes you can eat the packet, guys.” The packet was made of fried dough.

C.B. Bhattacharya, a professor at the University of Pittsburgh who’s consulted for Taco Bell, said the slogan Live Más isn’t just about indulging in fun food. It’s a lifestyle. And Taco Bell is trying to become a lifestyle brand.

“They’re trying to build a relationship with their customers that goes beyond the product,” he said. Bhattacharya said Taco Bell has also built a bit of a cult following.

“Who would have thought that Taco Bell could serve merchandise? But that’s the proof that they have broken through,” Bhattacharya said.

The chain sells hoodies and sweatpants. It recently launched a collaboration with Hollister.

“Not every brand can kinda pull it off. It has to be authentic,” said Jon Quinn, a professor at The Ohio State University who used to work in marketing at Yum! Brands.

Authentically Taco Bell — if not authentically Mexican. It’s always kinda been the kooky cousin to all the chicken and burger chains. Maybe not the place you go for dinner, but the place you go after the bars close.

“The fourth meal. So that late night meal,” Quinn said.

That kind of snacking skews younger. Peter Chun is a partner at Lippincott and worked on a Taco Bell rebrand. “We were just there two weeks ago, my son and I. My son is crazy about the Doritos Locos,” he said. (That’s a taco with a shell that’s a big nacho cheese chip.)

Chun said Taco Bell doesn’t take itself too seriously.

“Using sort of humor and tone of voice to bring in that connection that we’re not just selling tacos or burritos. But really we’re selling a personality, a relationship, a brand,” he said.

It’s layered in everything the chain does, down to its beefy five-layered burrito.