Marketing

Taco Bell is taking on the beverage business

The Mexican fast-food chain is introducing a line of Refrescas beverages nationwide and it plans to expand its Live Mas Café to another 30 restaurants in Southern California and Texas by this fall.
Live Mas Cafe
The beverage-focused Live Mas Cafe will be in 30 locations by fall. | Photos courtesy of Taco Bell.

Taco Bell is expanding the test of its beverage-focused, in-store concept Live Mas Café to another 30 locations in California and Texas by this fall. But the Mexican fast-food chain isn’t waiting that long to give customers at its restaurants more drink options. 

The Irvine, California-based chain is introducing a line of six Refrescas to its restaurants nationwide. The beverages will be priced at ranges from $3.79 to $4.49.

Both moves are key in the company’s plans to make beverages a far bigger part of its overall business. Taco Bell wants to generate $5 billion in sales through beverages every year by 2030, a number that on its own would be a Top 20 U.S. restaurant chain and one of the biggest drink providers in the country.

It comes as drink concepts have been expanding rapidly across the U.S., largely with drive-thru concepts. 7 Brew grew sales 168% last year and has been the nation’s fastest-growing chain for the past two years. 

But several other brands are growing rapidly, including Summer Moon Coffee, Better Buzz Coffee, Ellianos Coffee and Foxtail Coffee, not to mention established players like Dutch Bros and Scooters, and the dirty soda concept Swig.

The concepts attract younger consumers, in particular. “So, we’re making big investments to become the ultimate beverage stop where our fans can expect to see the same bold, unexpected creativity in their cups as they do on their plates,” Liz Matthews, Taco Bell’s global chief food innovation officer, said in a statement. 

Taco Bell isn’t the only one. McDonald’s plans to expand a test of beverages “inspired” by its recent CosMc’s drive-thru beverage concept that was just shut down. Two of the four biggest U.S. beverage chains dramatically expanding their drink offerings could impact much of the fast-food business.

Taco Bell's beverage menu will feature six Refrescas, including three flavors of Agua Refrescas. 

The Refrescas represent the first nationwide salvo in the oncoming competition. Taco Bell is releasing six Refrescas, including three flavors of Agua Refrescas: Strawberry Passionfruit, Dragonfruit Berry and Mango Peach. The drinks will cost $3.99 for a 20-ounce size.

There will also be two flavors of Rockstar Energy Refrescas at $4.49 for a 20-ounce: Pineapple Lime and Tropical Punch. Each drink has 200 milligrams of caffeine.

There are also two sizes of Refresca Freeze drinks in a Strawberry Lime flavor: $3.79 for a 16-ounce and $3.99 for a 20-ounce.

As for Live Mas Live, the chain will open the in-store concept in restaurants across Southern California, Dallas and Houston in the coming months in partnership with franchisee Diversified Restaurant Group, or DRG. That was the operator that first opened Live Mas Café.

The concept features more than 30 beverages, including Churro Chillers, Dirty Mountain Dew Baja Blast Dream Sodas and specialty coffees. Executives with Taco Bell parent Yum Brands have said that the concept boosted sales by 40%. 

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