The Waffle Taco, A.M. Crunchwrap, and other menu items have boosted sales and traffic significantly at stores nationwide since launching on March 27, according to a recent Citi Research survey.
The survey also found that more consumers prefer Taco Bell's breakfast over McDonald's —which has the largest share of the breakfast market.
"The initial indications are positive for Taco Bell," Citi Research analysts wrote. "While this development is clearly not a positive for McDonald's, it is still early and it may be possible for both McDonald's and Taco Bell to continue to grow at breakfast at the expense of other competitors."
Of the Taco Bell breakfast consumers that Citi surveyed, 61% said they plan on visiting Taco Bell at least once a week for breakfast going forward — including 17% who said they would visit at least twice a week.
Consumers' favorite item on the menu is the Breakfast Burrito, followed by the Waffle Taco and the A.M. Crunchwrap.
McDonald’s isn’t moving away entirely from its McCafé coffee. New TV advertising positions McGriddles as integral to the way some people take their coffee. Online promotion includes a site showcasing a series of life situations for which “Once you get a McGriddles, you’ll get it” is the recurring tagline.
McDonald's is launching a new marketing push for its pancake/muffin hybrid, the McGriddle, on the heels of its free coffee giveaway. This, much more than free coffee, is McDonald’s response not only to Taco Bell’s entry into the breakfast market but also to all the other competitive activity in the mornings according to the business ins
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