Taco Bell to drop breakfast at some restaurants

Taco Bell will stop serving breakfast at some of its restaurants. 

Taco Bell told FOX Business it has given its franchisees the "choice to streamline menus by opting out of breakfast starting in October 2024" so they can have more flexibility to "focus on key drivers of growth."

"With that said, breakfast will continue to be served in the majority of Taco Bell restaurants, as only a small minority have opted out of serving breakfast," the company said.

Taco Bell offers burritos, quesadillas, crunch wraps and other items on its breakfast menu.

Even with franchisees now getting the choice to forgo breakfast, the Yum! Brands-owned company said it continues to feel bullish about its breakfast items, saying that is the reason the "majority" of Taco Bells will keep selling it "including all company-owned restaurants."

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The upcoming "breakfast reset moment" will also involve Taco Bell leaning more into coffee. The fast-food brand further assured fans company-owned locations will keep testing "new breakfast products."

"All Taco Bell locations, regardless of their decision about breakfast, will be open at 9:00 a.m. or earlier, serving the rest of the menu," the company also told FOX Business.

There are over 7,400 Taco Bell locations across the U.S. and another 1,100 in other countries, according to Yum! Brands.

The brand linked its decision to let franchisees decide whether or not to offer breakfast at their locations to it receiving input from them and "making changes to support the overall growth of the brand."

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Approximately 94% of all Taco Bell locations are run by franchisees.

Taco Bell reported franchisees felt "heard" about menu flexibility, with some looking to focus "on other dayparts like lunchtime and the new Cantina Chicken Menu."

The Cantina Chicken Menu, which rolled out in March, consists of the Cantina Chicken Soft Taco, Cantina Chicken Crispy Taco, Cantina Chicken Burrito, Cantina Chicken Quesadilla and the Cantina Chicken Bowl. It has helped bring a 10% increase in Taco Bell’s chicken sales mix since its debut, Yum! Brands CEO David Gibbs said earlier this month.

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The brand is a big source of revenue for corporate parent Yum! Brands, which also owns KFC, Pizza Hut and Habit Burger Grill.

Taco Bell brought Yum! Brands $666 million in revenue in the second quarter, marking a 7% year-over-year increase. Taco Bell’s quarterly operating profit, meanwhile, came in at $250 million.