Taco Bell is joining the fray of fast-food chains betting big on specialty coffee drinks and frozen beverages.
Last week, the Irvine-based chain and one of its biggest franchisees, Diversified Restaurant Group, launched an in-store beverage concept called Live Más Café, where workers are referred to as “Bellristas.”
The experimental cafe, located in Chula Vista, features a range of specialty drinks like chillers, agua frescas and coffees with flavors like vanilla crema, Cinnabon caramel and Mexican mocha. Some drinks, such as a line of Churro Chillers, frappuccino-style blended beverages, were tested last year at a Taco Bell in Irvine.
Scott Mezvinsky, Taco Bell’s president of North America and International, said the Live Más Café test is part of the chain’s strategy to elevate the Taco Bell experience.
“This innovative pilot concept is all about expanding the boundaries of what Taco Bell can be,” Mezvinsky said in a statement sent to the Business Journal.
SG Ellison, Diversified Restaurant Group’s chief executive, said the café “redefines the consumer experience by bringing a new lineup of indulgent beverages.”
“This isn’t just a menu update message — it’s a movement,” he said in a statement.”
Other fast-food chains have been leaning into specialty beverages as coffee and “dirty soda” chains like Dutch Bros and Swig have grown in popularity across the U.S.
In 2023, McDonald’s debuted in the greater Chicago area CosMc’s, a spinoff concept that sells adventurous drinks such as vitamin-infused boba refreshers and blended frozen beverages. Sonic Drive-In, known for its slushies, is also increasing its lineup of beverages.
Restaurant consultant Tim Powell told the Business Journal that chains are investing in “beverage-heavy” menus to attract “social-media, teetotalers” ages 14-29.
“Young adults and teens want to be seen on TikTok and Instagram drinking at a Dutch Bros, CosMc’s or Live Mas Cafe,” said Powell, managing principal at Chicago-based Foodservice IP.
Partnering with Innovation-Driven Franchisee
Northern California-based Diversified Restaurant Group (DRG) has a reputation for being an early adopter when it comes to Taco Bell innovation.
The restaurant company, founded in 2014, operates more than 300 Taco Bell and Arby’s restaurants. DRG was one of the first Taco Bell operators to open a Taco Bell Cantina, the chain’s sleek urban concept that serves booze-infused slushy drinks.
In 2022, a DRG-owned Taco Bell near San Francisco rolled out six fast-charging EV stations.
Taco Bell’s Mezvinsky said partnering with DRG has been key in bringing the café “vision to life.”
“Together, we’re not only pushing the envelope on innovation but also reinforcing the power of strong franchise relationships in driving Taco Bell’s continued growth.”
Taco Bell’s ‘Magic Formula’
Taco Bell remains a standout for Yum Brands, driving growth while other chains in its portfolio –Irvine-based Habit Burger & Grill, KFC and Pizza Hut — reported negative third-quarter same-store sales. Same-store sales are a key metric of a restaurant’s financial health.
In Q3, Taco Bell revenue rose 6% to $666 million, while same-store sales rose 4%.
Yum Brands CEO David Gibbs credited Taco Bell’s growth to its “magic formula” of brand buzz, value and innovation.
Taco Bell represents 75% of Yum’s U.S. profit.
