While Taco Bell had many promotions and limited-time offers over the years, few were as popular as the Taco Lovers Pass.
Back in January, the chain, which is a part of Yum! Brands (YUM) , launched the monthly subscription: For $10 a month, pass holders could order one of seven of the chain’s popular tacos every day over the course of 30 days.
The promotion caused quite a stir online but, despite a 20% sign-up rate and a 16% renewal rate, was pulled by the fast-food chain by spring.
“I really am rooting for the customers that want to take advantage of the pass and redeem that free taco every day for 30 days,” Taco Bell’s Chief Digital Officer Zipporah Allen told TheStreet at the time. “That is a love commitment that I applaud.”
Remember That Taco-a-Day Offer?
Eight months after the initial launch, Taco Bell decided to bring back the pass for a single day — in honor of National Taco Day on Oct. 4, Taco Bell will be making the $10 subscription offer available to purchase through its mobile app.
“As National Taco Day is one of our biggest holidays, it only felt right to bring back our biggest digital innovation of the year, the Taco Lover’s Pass, to turn a one-day celebration of tacos into a month-long celebration for our fans,” Taco Bell’s Global Chief Brand Officer Sean Tresvant said in a statement.
Similarly to last time, pass holders will get to choose between Crunchy Taco, Crunchy Taco Supreme, Soft Taco, Soft Taco Supreme, Spicy Potato Soft Taco, Doritos Locos Tacos and the Doritos Locos Tacos Supreme.
Those who log into the app and buy the $10 pass on Oct. 4 will be able to eat one of the above tacos once a day until Nov. 4. Because those tacos range in price from $2 to $3, using the pass every day could save a taco-lover between $50 and $80.
The Value of the Subscription Model
Once limited to Olive Garden’s Never Ending Pasta Bowl, fast food “subscriptions” have taken off in the industry over the past few years.
Sweetgreen (SG) launched a a $10 pass giving customers $3 off every entrée priced more than $9.99 in January while privately-held chain Subway ran a promotion in which $15 gives holders of its “footlong pass” 50% off its full-size sandwiches throughout September.
Subscriptions often toe the line between profit and good publicity. Many customers love the idea of all-you-can-eat but, with rampant food inflation, passes that are too open in how much one can order can lead to overuse that chips away at profitability.
When Taco Bell launched the promotion in January and February, only 1% of the people who got the pass milked it for what it’s worth by buying a taco every day the pass was active.
In return, the internet excitement around the pass was through-the-roof as many fans called the thought of subscribing to tacos “a dream come true.”
“We’ve seen exactly what we hoped we would: Customers who had the pass increased their visits to Taco Bell three times more compared to when they didn’t have the pass,” Allen told TheStreet in February. “Twenty percent of the passes that we sell are completely new customers that are coming into the Taco Bell rewards program and formalizing their membership with the brand.”
[Source The Street]