00:00Taco Bell just had its best quarter in years,
00:02but statistically, Americans are choosing the grocery store over the drive-thru.
00:06So how is Taco Bell thriving?
00:08Here's what's happening.
00:09For years, Americans have been eating out way more than they were shopping for groceries.
00:1355 cents of every food dollar went to restaurants, an all-time high in 2023.
00:18Then, fast food prices rose faster than grocery prices.
00:22A McDonald's combo now regularly runs $15.
00:25So people did the math, and eating out gets cut.
00:28As a result, McDonald's U.S. sales fell 3.6% last quarter.
00:32Chipotle dropped too.
00:33Except one chain looked at the grocery shift and said,
00:36what if we just priced ourselves like a grocery store?
00:39In January, Taco Bell launched a new luxe value menu.
00:4210 different items, all under $3.
00:45That decision sent same-store sales up 8% last quarter,
00:48nearly double what analysts expected.
00:50Economists call that trading down.
00:52When budgets tighten, people don't necessarily cook more,
00:55they just find the cheapest way to get food.
00:57That is Taco Bell's lane, and Americans are stressed enough to fill it.
01:01According to an AP poll, half of Americans say grocery costs are a major source of stress.
01:06The average grocery trip runs about $170,
01:09and the response has been the same across all income levels.
01:12In a separate survey, 39% of Americans say they're eating out less altogether,
01:16and of those still going out,
01:1722% say they've switched to cheaper restaurants or fast food.
01:20Turns out, when the choice is between a $15 burger or a $3 taco,
01:25people choose the taco.
01:26That's how Taco Bell is thriving, and everybody else isn't.
01:29But we want to hear from you.
01:31When it came to Feeding Yourself this week, what actually won?
01:33The grocery store or the drive-thru?
01:35Let us know in the comments, and follow us here for more.
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