A “small minority” of Taco Bell stores will stop serving breakfast in October after the company gave franchisees the ability to opt out of the morning meal, the company said on Thursday.
The Irvine, California-based fast-food chain said that it will continue to focus on the daypart. It plans to ramp up its coffee program and will test new breakfast products in company stores. The Mexican chain also said all Taco Bell locations will open at 9 a.m. or earlier, regardless of whether they serve breakfast or not.
Taco Bell’s website features a store locator where customers can see if their location serves breakfast.
The company said that its breakfast performance continued to improve last quarter when same-store sales rose 5%. But it made the decision to give franchisees the ability to flex their menu based on the needs of the community.
Taco Bell said in a statement that, “this is another example of how the brand is listening to its people, taking their feedback into account, and making changes to support the overall growth of the brand.”
“We have to be nimble in a constantly changing QSR environment,” the company said, “especially with the range of audiences and lifestyles we serve.”
Nevertheless, the move continues something of a roller-coaster ride for Taco Bell’s breakfast program since it was introduced a decade ago.
The company allowed franchisees to do away with the program during the pandemic when breakfast sales slowed and the company was looking for ways to give operators ways to preserve cashflow.
Taco Bell reintroduced the daypart two years ago, with a simplified menu focusing on the Breakfast Crunchwrap and Breakfast Burritos and ads featuring the comedian and actor Pete Davidson. The effort appeared to work to lift the daypart’s sales.
But fast-food breakfast remains a hotly competitive market, particularly with Wendy’s entrance in 2020 and sales growth for that chain in the morning in the years since then.
Taco Bell has generally thrived regardless. Its same-store sales last quarter were higher than any other major fast-food chain despite a difficult economic environment, thanks to the popularity of its new higher-end, Cantina Chicken Menu.
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