Will Taco Bell’s new Dollar Craving Menu resonate with Hispanics?
What: Taco Bell is launching its new nationwide value menu called the Dollar Cravings Menu. Marketing for the menu will start on Thursday August 21 and will be led by Interpublic's Deutsch, Taco Bell's lead creative agency as well as Spark for media planning.
Why it matters: Hispanics clearly overindex in attendance to Quick Service Restaurants (QSRs). Yum Brands, the company that operates the licensed fast food brands of Taco Bell, Pizza Hut and KFC, was a top 35 advertiser to the U.S Hispanic consumer in 2013 and its advertising expenditures increased more than 30%, according to Kantar Media.
Taco Bell is launching its new nationwide value menu called the Dollar Cravings Menu today August 18. Marketing for the menu will start on Thursday August 21 and will be led by Interpublic's Deutsch, its lead creative agency as well as Spark for media planning. Taco Bell competitors like McDonald's, Burger King and Wendy's have been heavily promoting value menus since early 2013. Wendy's last year overhauled its value menu, naming it "Right Price, Right Size," which includes items that range between 99 cents and $1.99. McDonald's has been pushing its dollar menu since late 2012, and Burger King is on an extended kick promoting its two-sandwiches-for-$5 deal. All these major fast-food chains are vieying to increase purchase intent among Hispanic consumers (see Table below).
Long John's lead in Purchase Intent Improvement
|Brand||Score||Previous Score||Change in Score|
|Long John Silvers||9.3||-4.6||13.9|
Note: Purchase Intent Score improvement in Sept. October 2013
Hispanics, crucial to success
Hispanics are also a young demographic, with more than 23 percent of the population under 18 years of age, Liz Geraghty, vice president of brand marketing for Wendy’s recently told QSR Magazine. “As a restaurant brand, you really have to engage and connect with this consumer to succeed and to stay relevant,” she says.
As a restaurant brand, you really have to engage and connect with this consumer to succeed and to stay relevant.
According to research firm NPD, Hispanics have proved to be above-average limited-service users. According to NPD, more than 84 percent of Hispanics’ restaurant visits are at quick serves, and the average Hispanic consumer visits a limited-service restaurant 155 times each year, compared with the general population’s 151 visits.
“Four or five visits more per person per year is quite a bit of volume,” says Bonnie Riggs, restaurant industry analyst at NPD. The demographic also tends to use quick serves more for the breakfast daypart and snacking opportunities, and they’re above-average combo-meal purchasers, she says.
Four or five visits more per person per year is quite a bit of volume.
Taco Bell advertising also resonates well with Hispanics. A p0ll conducted by YaSabe, established that Taco Bell's was the most popular commercial with Hispanics at this year's SuperBowl.