Taco Bell turns crisis response into a customer retention play

The news: Taco Bell is offering a steep discount on the Enchirito—a flour tortilla filled with seasoned ground beef, beans, diced onions, cheddar cheese, and covered in “red sauce.” The item, which typically sells for $4.29, is available for $1 to members of Taco Bell’s rewards program.

The promotion of a menu item that doesn’t include lettuce comes shortly after the FDA and CDC linked lettuce served at some Taco Bell restaurants to a multistate Cyclospora outbreak. The chain removed the implicated lettuce, supplied by Taylor Farms, and placed a link to its consumer safety statement directly below the deal on its website.

Zooming out: The outbreak has rattled diners well beyond Taco Bell:

  • Taco Bell’s foot traffic fell nearly 20% on July 16, then dropped as much as 31% after federal officials publicly named the chain on July 17, per Placer.ai data cited by CNN.
  • Chopt’s traffic fell 24% on July 18, while Cava, Chipotle, Panera Bread, and Subway each saw declines under 10% over the same period, per Placer.ai.

The Cyclospora outbreak comes at a challenging time for the quick-service restaurant industry, which saw traffic fall 4.5% YoY in May, the third straight month of declines. The category appears to be losing the value wars, as fast-casual and full-service restaurants double down on value and draw consumers toward options that offer better perceived quality, customization, or portion sizes when they choose to dine out, per Placer.ai Industry KPI data.

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