Executives from Taco Bell are launching a fast-casual concept in Huntington Beach, Calif., dubbed U.S. Taco Co. Though the concept was created by Taco Bell execs, it will bear little resemblance to Taco Bell.
Taco Bell CEO Greg Creed said the idea started to take shape about a year ago, after the company did some routine consumer-segmentation research. The company found "a number of segments that provide growth for Taco Bell." One of those segments is made up of consumers who are willing to spend a little more for higher-quality ingredients and better atmosphere beyond what the traditional fast-food chain offers.
"We could spend time and money trying to get these people interested in Taco Bell," he said, but they would probably never become regular Taco Bell patrons. "We thought, maybe there's a new brand we can create to address this opportunity," he said, adding that the chain "has the talent and the money" to explore new concepts.
And so U.S. Taco Co., with logo art reminiscient of Day of the Dead sugar skulls, was born. The first location is slated to open up in the next few months (construction is just beginning), and the menu's focus will be on tacos, fries and shakes.
The giant player in the Mexican fast-casual concept is Chipotle. It and many other players in this category offer burritos and standard Mexican proteins such as steak, chicken and carnitas.