In the past year, Taco Bell’s culinary team brainstormed about 2,500 ideas to potentially land on the menu.
“Our innovation funnel is always open and ideas can come from anywhere—marketers, chefs, franchisees, dishwashers, customers—innovation is part of the Taco Bell culture,” said Luis Restrepo, VP of Product Innovation for the Mexican fast-food chain.
As the funnel narrows, only about 40 of those items make it through to the testing stage; others are discarded or pushed back to the top of the funnel for future consideration. Nevertheless, Taco Bell is testing or releasing double the number of new menu items and limited-time offers it did a year ago, Restrepo said.
And the Irvine, California-based QSR is not alone. Wendy’s is also on an innovation tear, said John Li, VP of Global R&D and Culinary Innovation at the Dublin, Ohio-based chain. “Innovation has always been part of what we do, but we’re amplifying it now,” he said. “There’s much more competition in the segment, and innovation and flavor exploration is so important to Gen Z and Gen Alpha.”
Blaze Pizza, on the other hand, hadn’t changed its menu in 10 years. The fast casual that pioneered build-your-own, personal-sized pizza was stuck in pre-pandemic mode, when fast-fired, customized pizzas were popular with lunchtime office crowds and delivery was not a way of life. What Blaze and its fans learned is that fast-casual pizza doesn’t travel well.
But a culinary refresh also was necessary. The 330-unit Blaze started overhauling its menu earlier this year, first updating its signature pizzas, and in total, popping 14 new items out of its pipeline between June and August.
Each of these chains has a unique innovation philosophy. But as Li said, the competition has intensified in quick-service along with customer expectations—especially among younger generations. At the Top 500 QSRs, new menu launches and LTOs more than doubled between 2022 and 2023, according to Restaurant Business sister company, Technomic, and they didn’t slow down in 2024.
“Draw” is the characteristic that builds traffic, referring to Technomic’s analysis, and these three players are creating menu items that draw in customers.
Giving it the Taco Bell twist
Taco Bell started the year off with Cantina Chicken, introduced at the chain’s groundbreaking Live Mas Live event in February in Las Vegas, at which the fast-food giant revealed its marketing calendar for all of 2024. The new slow-roasted chicken was created to be “destinational” not just a “me too” product, said Brett Pluskalowski, manager of research & development for Taco Bell’s food innovation team. “It took 60 iterations to make the chicken perfect.”
The chicken has deep-roasted notes, much like carnitas, enlivened with tomatoes, chilies, garlic and onion, differentiating the product from its competitors. “It also has great mouthfeel and has elevated our pipeline,” said Pluskalowski.
Indeed, Cantina Chicken is core to a number of new menu items, including the Cheesy Chicken Crispanada and Cantina Chicken Crispy Taco. It’s also a protein option in the new Cheesy Street Chalupas as well as the menu’s burritos and tacos, and is “here to stay,” said Restrepo. “It’s one of our most-successful launches and brings fans of chicken more reasons to come to Taco Bell,” said Restrepo. All that has led to a boost in traffic, he added.
In the second quarter of 2024, parent Yum Brands reported that Taco Bell generated a 5% increase in same-store sales by focusing on innovation, with Cantina Chicken playing a major role in that growth. “One in four items included a Chicken Cantina item,” Yum Brands CEO David Gibbs said during the earnings call. He noted that Taco Bell is outperforming the market by a “wide margin.”“It’s a clear standout in today’s environment,” he said.
Another traffic booster for the 7,200-unit-plus chain is tying into hot brands and trends. “Street” is having a cool moment in culture now, and calling it out in the menu’s Cheesy Street Chalupas resonates with customers. Same with partnerships with brands like Cheez-Its snack crackers, Tajin seasoning and up-and-coming singer/songwriter Omar Apollo’s Disha Hot Sauce.
That hot sauce has a compelling story, too. The Grammy-nominated musician grew up in Mexico, where his mother had a restaurant and created the sauce, a blend of habaneros, jalapenos and chile de arbol. “We learned of the story and decided to bring the sauce to life in our restaurants,” said Restrepo. “Disha Hot Sauce is a vehicle that allows us to put a Taco Bell twist on the menu and be in touch with [popular] culture.”
Like its quick-service competition, Taco Bell is busy innovating in the beverage space. “We’re trying to make our beverages as unique as our food,” said Pluskalowski. Churro Chillers are a prime example of the type of beverages only Taco Bell can bring. The lighter shakes tap into the brand’s Mexican flavor palette and expand the menu with a sweet, cold coffee option.
And back in May, the chain tested three fruity flavors of Agua Refrescas, its take on the iconic Mexican icy drink, the agua fresca. At the time, CMO Taylor Montgomery said that the LTO pairs “with everything our fans crave from Taco Bell and will help us on our journey to make Taco Bell a beverage destination.”
But tried-and-true platforms will never be abandoned, said Restrepo. “We’re always innovating on our fries, for instance, balancing new items with twists on favorites.”
At Wendy’s, famous and fresh are innovation targets
Wendy’s is taking a similar approach to innovation, focusing on “famous” or legacy items like its Frosties, breakfast menu and fresh burgers, but introducing new flavors and platforms that draw younger customers.
A robust pipeline has always been a priority for Wendy’s culinary team, but with the arrival of CEO Kirk Tanner in February, there’s a heightened urgency and stronger emphasis on innovation. “What has changed is we now have to make sure innovation is most impactful in the areas where it counts the most,” said Li. “I’m not going to spend my resources on developing salad croutons. We are focusing on our biggest bets.”
Breakfast is a differentiator and sales generator for Wendy’s, and Li said the brand will keep investing in it. The chain’s first breakfast burrito debuted in January, filled with quality ingredients including fresh eggs, bacon, cheese, seasoned potatoes and cheese sauce. It performed very well, said Li, and his team followed it up with a Sausage Breakfast Burrito, launched in test in May.
Wraps are what consumers like to eat, he added, and the platform can extend across all dayparts. In April, Wendy’s rolled out a Grilled Chicken Ranch Wrap to very favorable customer response. “It’s a format that has a lot of legs,” said Li.
Another recent breakfast hit is Cinnabon Pull-Aparts—iced bite-size cinnamon roll pieces with gooey centers. Li wanted to add something sweet and indulgent to breakfast, but these treats are building afternoon traffic, too. “I underestimated Gen Z and Alpha’s snacking behavior, and these can be positioned as snacks as well as breakfast,” he said.
He will continue to play off the momentum for Wendy’s cold brew platform, adding snacks that pair well with the beverages. In addition to plain cold brew coffee, there are Frosty Cream Cold Brews made with Frosty-branded creamer in three flavors: caramel, chocolate and vanilla.
Wendy’s signature stand-alone Frosty is one of those “famous” items that has experienced a burst of flavor innovation. “Gen Zers are flavor enthusiasts,” said Li. “They are always seeking new flavors and combinations of flavors.”
Several Frosty flavors have deep roots and are almost mandatory to be brought back every year, including vanilla, peppermint and strawberry. But the culinary team is now introducing seasonal favorites every three months or so. Orange Creamsicle launched for the summer season, followed by Triple Berry. Fall brings the Pumpkin Spice Frosty, “when consumers actually want it,” said Li.
Saucy Nuggs, Wendy’s updated chicken nuggets, were also developed to appeal to those young “flavor enthusiasts.” They joined the menu in June in seven flavors—BBQ, Garlic Parm, Buffalo, Spicy Honey BBQ, Spicy Garlic Parm, Spicy Buffalo and fiery Spicy Ghost Pepper—with the sauces coating the nuggets instead being served on the side as dips.
“We knew we had to deliver on the sauces, and doing them as a coating delivers the flavor,” said Li. He and his team are working on expanding the flavor variety to amplify the Saucy Nugg momentum. “Our flavor toolbox is much broader now, but the flavors we introduce have to make sense to Gen Z and be appropriate to our brand,” he added.
Saucy Nuggs have already achieved the goal of attracting new fans and building traffic, and like the pull-aparts, can be positioned for snacking as well.
In the pipeline are items fans will be super-excited about, said Li. “We think about the customer first when we think about menu innovation—this is not boardroom-generated innovation. And we don’t add things willy-nilly, as that can ruin the supply chain and operations.”
Blaze goes back to leading with culinary
Earlier this year, Christian Kuhn came on board as CMO of Blaze Pizza, joining his former GoTo Foods colleague, CEO Beto Guajardo, to revitalize the brand and position it for growth.
“Menu innovation is at the core of Blaze Pizza, and we have to bring the company back to being led by culinary,” said Kuhn. “When a great culinary idea comes up, I can market it.”
Kuhn must be busy, as is Matt Eland, the primary chef for the fast-casual pizza chain. First out of the pipeline were new chef-curated signature pizzas. These include the meaty Carnivore with toppings of pepperoni, ham and crumbled meatballs, and the Herbivore with mushrooms, roasted garlic, banana peppers and arugula.
“We now have six curated pizzas that can be rotated in and out, with new photos that make it simpler for first-time guests to choose,” said Kuhn. Sales are still 80-20 build-your-own pizzas to signatures, but these are “thought starters” to help the indecisive.
Like Wendy’s, Blaze is laser-focused on flavor. To make it easy on customers to change the flavor profile of any pizza, the chain released two new Drizzles this summer, working with suppliers to produce them in volume. There’s Spicy Chili Oil with Calabrian chilies and Sweet Hot Honey, a “swicy” blend with a contrasting touch of vinegar. They join a line of Drizzles that includes Pesto, BBQ Sauce, Balsamic Glaze, Buttermilk Ranch and Olive Oil.
The drizzles are available at all locations at very small cost to the franchisee but yield big flavor dividends that work across the menu. In fact, one of the chain’s most popular signature pizzas has been enhanced with a spicy drizzle and double the pepperoni, garlic and jalapenos to become the new Spicy Pepperoni Pizza.
Blaze has gotten “tremendous feedback on the drizzles,” said Kuhn. “These will be followed by a whole drizzle product line coming up.”
Blaze is also capitalizing on its fresh, house-made dough, a differentiator for the brand since it began back in 2011. “We thought we could take our great dough and make a great dessert,” said Kuhn. Earlier this year, the fast casual rolled out its first oven-baked dessert: Cinnamon Bread.
That same dough launched a whole new menu category, Fast Fire’d Folds, a product inspired by Italian calzones and strombolis. The first entry in the category is the Spicy Pepperoni Fast Fire’d Fold, a handheld “envelope” filled with mozzarella, ricotta, Parmesan, jalapenos and pepperoni, baked until golden, then enhanced with one of the drizzles and served with cups of house-made red sauce for dipping.
“We are testing out four to five additional variations for Folds,” said Kuhn, adding that Blaze’s versatile pizza dough can be the starting point for a number of line extensions, including sandwiches.
Cheesy Bread, which launched as a side in 2020, was one of the first line extensions. This summer, it morphed into Spicy Cheesy Bread with the simple addition of a Spicy Chili Oil drizzle over the melted cheese as soon as it comes out of the oven.
Also making its menu debut this summer was the Spicy Meatball Bowl. Earlier in the year, Blaze introduced Fast Fire’d Meatballs as a protein option, but the entrée bowl includes three pork-beef blend meatballs simmered in house-made red sauce and served with a dollop of ricotta cheese and topping of spicy pickled jalapenos.
Although Blaze declined to reveal traffic figures, the new items are driving loyalty, with membership numbers ticking up along with the menu additions, said Kuhn. The ratio of signature pizza orders is also climbing, he added, indicating that innovation in that category is attracting customers.
Managing the pantry
One of Blaze’s primary goals was to keep new SKUs to a minimum as the menu overhaul continued. “We can’t add a lot of new costs or ingredients for our franchisees, as they have to be really smart with their pennies,” said Kuhn. “We’re using products that already exist but changing them slightly by cross-utilizing when possible.” The Drizzles, for example, are a simple enhancement that bring innovation at a low cost without increasing complexity.
Taco Bell, on the other hand, has the leeway to bring in lots of new ingredients to keep up with the trends, said Restrepo.
“We’re extending our pantry more than ever before to pick up the pace of innovation,” he said. “We’re continually bringing in new products so consumers can try new things and get excited.”
Wendy’s follows different inventory guidelines in the United States vs. internationally, said Li. “Internationally, we have to cross-utilize as much as possible. In the U.S. we can add many more new SKUs to accomplish our innovation goals, but we have to balance that with complexity.”
All three operators agree that menu innovation cannot negatively impact operations or supply chain. For Li, that sometimes means removing something from the pantry when he brings in something new, or even changing a package size to reduce complexity.
But in the end, “if it benefits the fan, we’ll bring it in,” he said.