Taco Bell has opened a new concept in San Diego called the Live Más Café, designed to focus on beverages and trendy drinks. The café’s menu includes a range of milkshakes, coffee drinks, fruity iced beverages, and a twist on the popular “dirty soda” trend featuring Taco Bell’s signature Mountain Dew Baja Blast.
The new café concept is similar to CosMc’s, a McDonald’s-owned store that launched last year and specializes in specialty drinks and snacks for younger audiences. With this move, Taco Bell enters the competitive beverage category, joining industry giants like Starbucks and Dunkin’, along with rapidly growing chains such as Dutch Bros, Swig, and Scooter’s Coffee.
Taco Bell Seeks to Tap Into Beverage Trend
“Taco Bell, like many quick-service brands, sees a big opportunity in the beverage space,” said R.J. Hottovy, head of research at Placer.ai. He noted that beverage-focused concepts have been among the fastest-growing segments in the restaurant industry, particularly in attracting younger consumers. Hottovy also suggested that this new venture could help Taco Bell “expand and diversify its audience.”
The company views the new café as part of its strategy to “disrupt the beverage industry.” Taco Bell has been increasingly focused on beverages in recent years, introducing frozen coffee drinks (Chillers), green tea-based Agua Refrescas with fruit, and cold brew coffee options through a partnership with Beekeeper—many of which are featured at the Live Más Café.
A Strong Performer for Yum Brands
Taco Bell is currently the top performer in Yum Brands’ portfolio, outperforming sister brands like KFC and Pizza Hut. The chain reported a 4% increase in same-store sales in the latest earnings quarter, driven by popular menu items such as a new value meal and the Big Cheez-It.
Created in Partnership with Diversified Restaurant Group
The Live Más Café was developed in collaboration with Diversified Restaurant Group, one of Taco Bell’s largest franchisees, which also helped create Taco Bell’s successful Cantina concept a few years ago. Diversified operates nearly 400 Taco Bell locations.
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