Fintech & Ecommerce

Taco Bell Sees Record Digital Sales

Taco Bell’s parent company Yum Brands continues to direct investment funds into digital technologies.

Taco Bell Sees Record Digital Sales

Last Wednesday, February 7, during the quarterly earnings report, the CEO of the mentioned company, David Gibbs, said that in the last three months of 2023, sales in the virtual space showed an increase of 22% year-on-year. In this context, he noted that Yum Brands has managed to cope with problems, including the impact of the conflict in the Middle East on the economy and changes in consumer behavior.

Taco Bell’s business results are consistent with the trend of digital sales growth. In the case of this brand, the corresponding indicator for the fourth quarter of 2023 showed an increase of 31% year-on-year. This dynamic is a record.

David Gibbs also reported that in the last three months of 2023, kiosk sales showed growth of 15% compared to the fourth quarter of 2022.

The CEO of Yum Brands noted that the optimization of digital channels also contributes to the positive dynamic of Taco Bell’s loyalty program. According to him, the number of participants in this program increased by 17% last year. David Gibbs says that in 2024 the company intends to introduce new offers aimed at increasing customer loyalty. According to him, the relevant solutions will be launched in the second half of the current year. In this context, David Gibbs stated that the company seeks to benefit from digital interaction and intends to simplify the process of earning and redeeming points for consumers.

Also in 2024, Yum Brands plans to develop and test new capabilities based on artificial intelligence. In this case, it means such solutions as personalized recommendations to up sales for customers who place digital orders, intelligent pricing, and dynamic routines in restaurants for general managers.

David Gibbs says that the digital ecosystem is coming to life. Yum Brands’ plans to achieve specific goals and improve performance mean that this company belongs to the category of other quick-service restaurant brands seeking to successfully implement similar efforts. For example, Chipotle released an earnings report this week, which notes that this firm used information from its digital loyalty program to more effectively increase customer engagement.

Chipotle CEO Brian Niccol said that his company recently implemented suggestive upsell in its app at checkout. In this case, data about the participants of the corporate reward program is used, including the history of prior orders. Brian Niccol believes that the company he heads is currently on its way to commercializing customer information and data on more targeted marketing campaigns. He is also confident that Chipotle will be able to improve the overall digital experience, which will increase frequency and spending over time.

Consumers demonstrate an interest in virtual solutions offered by the business providing the services. They also positively perceive the personalization of the user experience. In the United States, 71% of consumers have already applied personalized offers and expressed interest in such solutions. At the same time, 12% of the representatives of the consumer community stated a positive perception of such concepts of business interaction with customers.

As we have reported earlier, US Holiday Retail Sales Grow 3.1%.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.