Taco Bell says it is seeing early signs of recovery after the Cyclospora outbreak hurt sales and customer traffic.
The chain is leaning on steep discounts, including $1 Mexican Pizzas, Enchiritos, and app-exclusive deals, to entice customers back.
Executives say removing the affected lettuce and emphasizing value promotions will help restore consumer confidence.
Taco Bell is counting on a mix of discounted menu items and new product launches to win back customers after a nationwide Cyclospora outbreak linked to contaminated iceberg lettuce triggered a sharp drop in restaurant traffic. Some price breaks are substantial.
Executives at parent company Yum Brands said this week that the fast-food chain is already showing signs of improvement after a difficult July, when news of the outbreak caused consumers to avoid Taco Bell locations across the country. The company reported that U.S. same-store sales have fallen about 2% since the current quarter began, but said trends have improved in recent weeks.
The outbreak, traced to shredded iceberg lettuce supplied by Taylor Farms, sickened thousands of people nationwide and prompted Taco Bell to remove the affected lettuce from restaurants. The company has maintained that the contaminated produce has been eliminated from its supply chain and that customers can once again order safely.
An old fast-food strategy
To accelerate its recovery, Taco Bell is turning to an old fast-food strategy: low prices.
The company has rolled out a series of promotions centered on menu items that don't contain lettuce. Initial offers included $1 Enchiritos, along with $1 regular Nacho Fries for rewards members ordering through the Taco Bell app. More recently, executives said the chain has expanded the campaign with $1 Mexican Pizzas and plans additional discounted menu items in the coming weeks.
Yum Brands Chief Executive Chris Turner told investors the promotions have generated some of the strongest customer response the company has seen, with Taco Bell's "Tuesday Drops" promotions outperforming previous campaigns.
The discounts come after the outbreak took a measurable toll on the chain.
A rough July
Customer visits plunged after federal health officials publicly linked Taco Bell to the Cyclospora investigation. According to location analytics firm Placer.ai, daily foot traffic dropped by nearly one-third immediately after the announcement, forcing the company to act quickly to reassure customers.
Taco Bell executives believe public perception has begun to improve, as consumers learn the contamination originated with a produce supplier rather than restaurant operations themselves.
They also point to the company's rapid decision to remove lettuce nationwide as evidence of its commitment to food safety.
The recovery effort extends beyond discounts. Taco Bell is also introducing limited-time menu offerings, including new items such as butter chicken tacos, to give customers additional reasons to return.