Fast-food chain Taco Bell announced a new budget deal to win over price-oriented customers on Thursday. It would debut a combo deal named the $2 Duo that provides customers with a Triple Melt Burrito and a drink, including the option of its Baja Blast, that costs two dollars. It expects to win over customers who do not have much money to spare in the competitive food industry, which will be good news for college students, start-up entrepreneurs, and the average American living paycheck to paycheck trying to minimize food expenditure, according to Taco Bell’s chief brand officer Marisa Thalberg.
“The fact that you can literally fill up your car with gas to go to work and you can still be able to take $2 and get a great burrito and a great drink and feel good about the fact that you treated yourself – it’s not inconsequential for most people,” Thalberg said.
Taco Bell has been expanding on its value menu, announcing last year that it would introduce 20 new dollar items in 2018. Thalberg noted Taco Bell’s new items aren’t only cheap but things “we really, really want.”
UBS Analyst Dennis Geiger said Taco Bell to be an industry leader in value, winning over budget shoppers since many people feel they don’t have funds to eat out. Customers say the primary two factors they don't eat out are because they have less free spending money and that eating out to be too expensive, according to UBS. Taco Bell is aiming to address that in its sales of value-oriented items.