New Taco Bell Locations Nix the Drive-Thru

A fast-food leader expands to high-density urban areas where walking makes drive-thrus passé.

August 06, 2018

IRVINE, Calif. – For years, nearly all Taco Bell locations included drive-thru windows, and 55% to 70% of all sales came from drive-thru diners, Motley Fool reports. But in large urban areas, cars are optional, and over the past year, the chain has opened 16 “urban inline" stores (smaller locations without drive-thrus).

Adding details to growth plans revealed last fall, management at Taco Bell says it will undertake a major expansion, incorporating these new store models. The plan calls for adding 125 locations in metro New York in the next five years as part of a broader plan of opening 1,000 new U.S. outlets. The smaller-format stores vary in size, with the most compact model coming in at 1,200 square feet. So far this year, Taco Bell has opened 90 new U.S. locations and plans to add 100 more by the end of the year.

The new concepts let Taco Bell expand into walkable metro areas where its traditional store designs would be a poor fit. The chain also plans to install self-ordering kiosks in all stores by late 2019 and expand its delivery agreement with GrubHub to about 4,500 locations.

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