Taco Bell and Pepsi, QSR pizza scores a win, Wendy’s is yellow
.jpg?width=100&auto=webp&quality=80&disable=upscale "Picture of Sam Oches")
On this week’s Extra Serving, NRN editor in chief Sam Oches and executive editor Alicia Kelso discuss the latest restaurant industry news, including Taco Bell’s renewal of its partnership with Pepsi, the QSR pizza category’s market share gains against retail, and Wendy’s efforts to win back customers.
First up is the news that Taco Bell renewed its contract with Pepsi through 2036. This came in the wake of Yum sister chain KFC making the switch to Coca-Cola, a move that prompted many to wonder if Taco Bell would follow suit. Sam and Alicia discuss Taco Bell’s decision and why it made a lot of sense even beyond the implications of the Baja Blast.
Speaking of beverages, Sweetgreen announced that it was rolling out new and improved drinks, including Tropical Black Tea and Fresh Blackberry Basil options. The fast-casual brand’s sales have been plummeting, and it’s tried to drive excitement with new products like Ripple Fries and Wraps. Could more attention toward beverages re-energize the chain? Sam and Alicia aren’t so sure, but they talk about how healthier, functional, and house-made beverages could be a good lane for fast casuals like Sweetgreen.
They then turn their attention to the pizza category, which was the only menu category last year to suffer sales declines, according to Technomic. But new data suggests there’s at least one thing the category can brag about: According to Numerator, QSR pizza now accounts for 45% of total pizza spending, which is a 3.1% increase compared to 2019. Sam and Alicia discuss the data and why pizza has ended up in a war for convenience, leading to issues among the bigger chains.
Finally, Sam and Alicia discuss Wendy’s, the national burger chain whose sales fell by 12% last quarter as it looks to solve operational, product, and marketing issues. The company recently brought back yellow packaging — a throwback to branding that was discontinued in 2012 — and also introduced a new Dave’s Single combo meal for $7.99. Are these silver bullets for Wendy’s? Hardly. But Sam and Alicia talk about why they could be steps in the right direction.
For more on these stories:
Sweetgreen beefs up beverage offerings
