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Taco Bell is killing its dollar menu

Dec 14, 2018, 22:02 IST

Hollis Johnson/Business Insider

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  • Taco Bell is killing its dollar menu.
  • On Thursday, the chain announced it is swapping out its Dollar Cravings Menu for a unified Cravings Value Menu, which ranges from $1 menu items to $5 Cravings Boxes.
  • The dollar menu is disappearing as a fast-food staple as chains increasingly emphasize bundled value deals.

Taco Bell is ditching the dollar menu.

On Thursday, the chain announced it is swapping out its Dollar Cravings Menu menu for its new, unified Cravings Value Menu. The Cravings Value Menu will includes both $1 menu items, such as the $1 Grande Burrito, as well as $5 Cravings Boxes.

In December 2017, Taco Bell announced it was expanding its dollar menu. The chain rolled out 20 $1 limited-time offerings throughout 2018, in addition to the 20 $1 permanent menu items.

Read more: Taco Bell and McDonald's are gearing up for a cutthroat battle of the fast-food dollar menus

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"While [the dollar menu] was a huge focus in 2018, and a promise we exceeded, in 2019 we're really focusing on the revamped Value Cravings Menu and what that means for fans," a Taco Bell representative said in an email to Business Insider. "We're confident the new look, feel and offerings go against competitors value offerings."

The dollar menu - made famous by McDonald's - has mostly disappeared from modern American fast-food chains. While many chains have $1 menu items, companies have increasingly turned to different types of value deals.

For example, McDonald's killed the Dollar Menu in 2013. In January, McDonald's launched the $1 $2 $3 Menu, which offers deals at three price points. And, in November, McDonald's launched the $6 Classic Meal Deal, a bundled deal that includes one entrée, a small fry, a drink or sweet tea of any size, and an apple pie or seasonal pie.

McDonald's isn't alone in turning to bundled deals as a way to win over budget shoppers. Burger King introduced its $6 King Box in December, and Wendy's expanded its four-for-$4 bundle deal earlier in 2018.

Now, with the Cravings Value Menu, it seems that Taco Bell is ready to join its rivals in emphasizing bundled deals as the dollar menu's power continues to fade.

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