Taco Bell Goes Gourmet

The Mexican fast-food chain will add black beans, corn salsa and cilantro rice to its menus.

January 13, 2012

LOUISVILLE, Ky. - Taco Bell wants to upgrade its image as a fast-food Mexican restaurant by adding more upscale menu items, such as corn salsa, black beans and cilantro rice, Bloomberg Business Week reports. Taco Bell has been chasing Chipotle Mexican Grill, watching its market share erode ?" more than a thousand stores closed over the past dozen years ?" as the fast-causal chain grew.

"They have a tough road ahead to really reposition themselves as a direct competitor to Chipotle or Qdoba," said Mike Brumagin, who owns a Taco Bell store. Taco Bell has "always been about value."

The chain has repositioned itself as a value buy for a younger demographic with its recent 12-pack of crunchy tacos for $10. Last year??s lawsuit claiming Taco Bell didn??t have enough real beef in its food to call it beef also damaged its credibility. The lawsuit was dropped.

"Chipotle is an opportunity because what it??s done has expanded the trial and usage of Mexican food," said Greg Creed, Taco Bell president during a December investor meeting. "It??s got people to believe they can pay $8 for a bowl or a burrito." He believes that Taco Bell can turn out food "every bit as good as Chipotle," but for a lower price point.

Taco Bell will reveal more details about its plans to offer more upscale fare in the coming months.

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