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Taco Bell has launched a new value meal deal, the $7 Luxe Cravings Box, as part of a broader strategy by fast-food chains to attract customers frustrated by rising prices. The promotion, introduced on Thursday, offers a mix of full-sized favorite items for a limited time, although the company has not specified an end date.
Taylor Montgomery, the CMO of Taco Bell North America, stated that the Cravings Box aims to provide “our most craveable items at an affordable price point.” The Luxe Cravings Box includes a Chalupa Supreme, Beefy 5-Layer Burrito, Double Stacked Taco, chips with nacho cheese sauce, and a medium drink.
This move by Taco Bell is in line with similar promotions by other fast-food giants such as Burger King, McDonald’s, and Wendy’s, which are all attempting to win back budget-conscious diners. These efforts come amid reports of declining or stagnant foot traffic at many fast-food and casual dining establishments, including Applebee’s and IHOP.
The recent price increases on fast-food menus have been attributed to rising labor and food costs. Notably, the minimum wage has been raised in 22 states as of January, while the federal minimum wage remains at $7.25 an hour.
Despite claims from the industry about these financial pressures, labor advocates argue that the profitability of these large fast-food chains can easily absorb the impact of wage increases. Indeed, an analysis by the Roosevelt Institute highlighted profit margins in the sector as of March.
The impact of menu price hikes is felt most acutely by low-income Americans. A poll conducted in January by Revenue Management Solutions revealed that approximately 25% of individuals earning below $50,000 annually are reducing their fast-food purchases, with cost being the primary deterrent.