Well, there's actually more to it than you might expect, and it has to do with everything from ingredient sources to worker pay to that famous value menu you love. As it turns out, Taco Bell's famous slogan, "think outside the bun" can apply not only to Taco Bell's food but also its prices.
Taco Bell had always been famous for its dollar menu , which offers meals at especially inexpensive prices. While you might expect this name change would mean an increase in menu prices to back over a dollar, this move actually allowed Taco Bell to expand the list of offerings on the value menu. That ultimately means more deals at better prices. The value menu now has different tiers, meaning you can start out with something like a Nacho Crunch Double Stacked Taco for a dollar and add on items like pico de gallo, guacamole, and sour cream for a few cents each.
Those ingredients add up to make a filling meal while the costs stay low. The new menu is very similar to the dollar menu that's been around and popular since the s, only it's now even more dynamic. Admittedly, this strategy isn't exactly unique to Taco Bell. Since the invention of modern fast food franchises, one key principle that has remained intact is the theory of economies of scale , which essentially means that each individual additional unit of output for Taco Bell, each individual taco costs the company less than the previous unit.
Say you're at home making yourself a taco from scratch. Why not make yourself a second taco? The ingredients are already out, and it will be significantly less work if you make it alongside the first.
One of the reasons this principle plays out so well for fast food companies is that the companies can already bring in ingredients for fairly cheap. For better or worse, bulk ingredients like corn remain extremely inexpensive in America, and buying more of it generally means a better deal.
Taco Bell's final product allows you to stick to your budget, even as you buy another taco, and another one, and another one. This one sounds a bit grosser than it really is. But thanks to a lawsuit resolved in April , we now have a clearer picture of what you can expect from the beef taco you'll find at Taco Bell. So what's in the beef? So how do they make this work?
And what are the underlying economics behind it? Many try to, yes. Once upon a time, it had a very simple menu: burgers and fries, really. But over time, as they tried to attract a larger market share and they added salads, burritos and whatnot, it made them less efficient to run.
KFC added different breading and types of chicken, becoming ever more complex. He points out that you can change the shape of pizza or put cheese in the crust or whatever, sure. And a hamburger, at the end of the day, is just a hamburger.
At Taco Bell we pride ourselves on standards of food safety and product quality that are among the highest in the food industry. We are committed to offering our customers quality they can rely on, with trust in every bite. We only use suppliers who share our core values around food safety and product quality. We work with them on a continuous basis to drive food safety and quality initiatives to greater and greater levels, always meeting all regulatory and industry standards, and, in many cases, exceeding them.
We award those with the greatest passion and best results with our Star Supplier of the Year Awards. All of our suppliers are aware of the Taco Bell single-minded commitment to doing what is right for the customer, and knowing that for Taco Bell, only the best is good enough. Our unrelenting commitment to food safety and premium quality products does not end with our suppliers. We have the same industry leading standards of excellence in every restaurant, every day.
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