Taco Bell is keen to expand further in European markets, with evidence of strong appetite for the brand and for Mexican-inspired cuisine across the continent, according to UK general manager Ian Cranna.
Cranna told MCA’s Food to Go conference earlier this month that growing appetite for Mexican-inspired cuisine in the UK has helped the US import increase brand awareness and establish its footing in a new market.
“We’re clear on our positioning in the QSR space, but there are a lot of [Mexican-inspired] concepts coming in at the high end as well,” he said. “More exposure is really key, so customer education around formats and cuisine is just going to support growth in the category.”
The California-headquartered chain opened its first UK site in 2010 but expanded slowly in its initial years in the region. From 53 sites at the end of 2020, Taco Bell now has a 137-strong estate in the UK but is still early in its growth journey, according to Cranna.
The business has a strong presence in Spain and Portugal and a limited presence in the Netherlands, Finland, Cyprus, and Romania – but is yet to launch in some of Europe’s biggest QSR markets such as France, Germany, and Poland.
“There will definitely be further expansion,” Cranna added. “Bucharest has one of our busiest stores, so the appetite for the brand and cuisine is there across Europe.”
With its 137 UK sites ranging from Aberdeen to Cornwall, Taco Bell is finding new channels for expansion, for example a recent partnership with Welcome Break.
It has refined its openings strategy through its journey in the UK, Cranna added.
“We’ve learned a lot in our growth journey and are now reaching a point where we’re much more informed about traffic drivers for our business. Previously, we would often look for other high volume QSR businesses and open next door.
“Sometimes it worked, sometimes it didn’t. We have a slightly different target customer. Now we can identify the right sites, which gives us confidence for growth.”
Cranna also spoke of the brand’s ‘cult-like’ status in the US. In addition to the growth in Mexican offerings, Taco Bell’s value proposition has been key in developing its UK presence.
Taco Bell’s founder sold tacos for 19 cents in California in 1962 – equivalent to just under $2 in today’s terms and the price for many of the menu items today, according to Cranna.
“We’ve maintained that core value proposition,” he added. “Particularly in the last several months, we were surprised how resilient the customer was…that value proposition has become increasingly important.”
The business has a more extensive menu in the US, but has centred its UK offering around core items like tacos, quesadillas, and burritos. Still, menu innovation is a key driver, with products like the chicken taco shell.
“Marketing is very important for us,” Cranna said. “In the US, the brand pops up in all forms of culture.
“We’ve got a 62-year history there, but we’re leaning into developing that status in the UK through marketing and advertising.”
With a primarily Gen Z audience, Taco Bell punches above its weight on channels like TikTok, competing for reach with QSR competitors that have a far bigger UK presence.
In addition to advertising campaigns like Taco Tuesday, Cranna pointed out that 80% of the brand’s interaction with consumers is through digital channels, including the app, delivery aggregators, and kiosk ordering.
“Gen Z are happy, familiar, and native on delivery and digital channels.
“Covid expanded our brand presence and gave us an additional delivery channel that’s very important for many of our sites.
“We’re still very early in our international growth journey.”
