Tacover: Chalupa-maker edges out BK sales for first time
Taco Bell, Burger King announce aggressive Canadian expansion plans
Call it the battle of the Naked Chicken Chips versus the Angry King.
Taco Bell officially edged out Burger King in U.S. sales in 2017, and sales growth at the Mexican-themed chain actually outpaced that of the Whopper-maker in Canada last year, says Robert Carter, executive director of food service at market research firm NPD Group.
The chalupa and crunch wrap chain’s sales were up 5 per cent last year in Canada, while Burger King’s rose 2 per cent, he said.
“South of the border, Taco Bell has focused on some crazy innovations like deep-fried tacos and Doritos-wrapped tacos, plus their dollar menu is a real sales driver,” he said.
Meanwhile in Canada, Taco Bell recently relaunched its popular “chicken chips,” which are crispy triangles of marinated white-meat chicken with warm nacho cheese dipping sauce.
Burger King has just introduced the “Angry King” burger, which includes jal- apenos on top of two patties.
Taco Bell, which is owned by Yum Brands along with KFC and Pizza Hut, has a total of 170 restaurants in eight provinces.
Burger King — now owned by Restaurant Brands International, along with Tim Hortons and Popeye’s — has 280 locations across Canada.
Both fast-food chains have talked in recent years about aggressive expansion plans in Canada, with the taco behemoth saying it expects to grow to 600 locations in the coming years.
Burger King also told the Star in an interview in November 2016 that it could see itself popping up in as many locations as archrival McDonald’s in Canada, which has 1,400 restaurants across the country.
However, Taco Bell’s net store growth has remained relatively flat in the last couple years, says Carter, while Burger King’s fell last year with the closing of 15 underperforming stores.
That included one located right across from McDonald’s on Front St. in Toronto where the Star interviewed the president of Burger King Canada, Eric Hirschhorn.
However, Burger King Canada said in an email: “We are making good progress on our plans and continue to be very excited for the future prospects of the brand and its potential in Canada.”
As it stands, both chains are nowhere near the size and sales of Tim Hortons, McDonald’s and Subway in Canada, with A&W and Starbucks rounding out the top five in sales, Carter said. In fact, Burger King barely cracks the top10 and Taco Bell is even further behind.
“In the U.S., Mexican food is a popular area of the market. But here, it’s nowhere near as developed,” said Carter.
He pointed to more demand for quality Mexican fare that can be found at Burrito Boys and Quesada “rather than gut-fill from Taco Bell.”
Bloomberg reports that Taco Bell eclipsed its burger rival in U.S. sales last year, becoming the fourth-largest domestic restaurant brand, according to a preliminary report by research firm Technomic. McDonald’s, Starbucks and Subway held on to the top three spots south of the border.
Last year marked the first time that Taco Bell has overtaken Burger King in the U.S., the data showed.
Though Burger King has fared better than many restaurants brands in recent years, it hasn’t kept pace with its biggest burger rivals — McDonald’s and Wendy’s — or chains such as Taco Bell.
Its domestic U.S. sales rose just 1.5 per cent in 2017, according to the Technomic report, which will be finalized in March.
Burger King faces a “resurgent McDonald’s,” David Henkes, senior principal at Technomic, said in an interview. Upscale burger chains, such as Shake Shack Inc., also are threatening its market share.