Taco Bell Launches Live Más Café to Amplify Beverage Sales
Taco Bell, owned by Yum Brands, is intensifying its focus on beverage innovation through its Live Más Café concept. Launched in December last year, the initiative started with a location in Chula Vista, California, followed by a second site near the University of California, Irvine campus. By the end of 2025, Taco Bell plans to operate 30 Live Más Café outlets across Southern California, Dallas, and Houston. Unlike standalone beverage spinoffs such as McDonald’s former CosMc’s, Live Más Café operates within existing Taco Bell restaurants. Customers order via kiosks and observe “bellristas” preparing specialty drinks at a dedicated counter, occupying prime in-store space. The beverage menu features blended coffees, lemonade-based refrescas, and other innovative options.
Strategic Growth Targets and Sales Momentum
Taco Bell aims to build a $5 billion beverage business by 2030, a target disclosed during Yum Brands’ investor day in March 2025. The chain has sold over 600 million beverages this year, reflecting a 16% increase compared to the prior year. Currently, more than 60% of Taco Bell orders include a drink.
“People are craving unique, interesting flavors in their beverages, and we hear that all the time from our consumers,” said Liz Matthews, Taco Bell’s global chief food innovation officer.
Immersive Beverage Experience at Live Más Café
The Irvine Live Más Café location showcases the beverage station as the centerpiece, with self-order kiosks positioned prominently around the long counter. Customers can watch the preparation of drinks, a stark contrast to the traditional assembly of food items hidden from view. Digital menu boards highlight four main beverage categories: churro chillers, specialty coffees, refrescas, and “bellrista favorites.” Churro chillers are creamy milkshakes topped with churro pieces. Specialty coffees are available hot, iced, or blended as chillers. Refrescas combine lemonade, green tea, or Rockstar energy drinks with fruity flavors like strawberry passionfruit and mango peach. Seasonal “bellrista favorites” include creative options such as the caramel apple empanada churro chiller. While the menu draws inspiration from Taco Bell’s Mexican roots, the brand maintains a playful and curated approach to flavor offerings. Customization options are intentionally limited, responding to consumer preferences for expertly crafted drinks rather than extensive personalization. Top sellers at the Irvine location include the Mexican Chocolate Churro Chiller, Dirty Mountain Dew Baja Blast Dream Soda, and Mango Peach Agua Refresca. Since opening in September, the site has averaged over 900 drinks sold per day, with more than one-third of orders featuring Live Más Café beverages. Similarly, the original Chula Vista café surpassed sales expectations by four times and currently sells over 750 beverages daily, accounting for 25% of all transactions.
“The payback looks really attractive and in line with what our franchisees would expect,” stated Taylor Montgomery, Taco Bell’s global chief brand officer, “but we have much more to learn.”
Beverage Innovation as a Fast-Food Industry Trend
Beverages have emerged as a dominant trend in fast food throughout 2025, eclipsing traditional focuses such as chicken sandwiches or plant-based options. Competitors like Shake Shack, Panera Bread, and Chick-fil-A are expanding their beverage menus with bubble tea-inspired drinks, energy refreshers, and specialty coffees. Data from Technomic indicates a 9% increase in beverage sales among the top 500 chains over the past year. This surge aligns with younger generations’ preference for customizable, novel, and indulgent drink options.
“There’s a big opportunity with an entire generation and their interest in ‘little treat’ culture,” commented Claire Conaghan, trendologist at Datassential.
Foodservice analyst Varchasvi Singh of Mintel highlights that Generation Z and millennials seek experimentation and premium experiences in fast-food dining, contrasting with older generations focused on affordability.
Targeting Gen Z: A Core Driver for Live Más Café
Live Más Café aligns with Taco Bell’s broader strategy to engage Generation Z, whose purchasing power is expected to grow significantly. Approximately 60% of Gen Z consumers visit quick-service restaurants seeking an afternoon treat. Instead of launching standalone cafés, Taco Bell integrated the concept within existing restaurants to leverage brand familiarity while testing consumer preferences and operational efficiencies. “Today, we’re not known to be a beverage destination — yet,” remarked Taylor Montgomery, emphasizing the brand’s humility and long-term vision. The Live Más Café also functions as a testing ground for product innovations and customer data, informing menu decisions and national rollouts. For example, Taco Bell’s agua frescas—originating from the café menu—have been launched chainwide and are among the top-selling items. Additionally, the café’s coffee offerings support Taco Bell’s renewed push into breakfast, a segment with operational challenges for some franchisees but strategic growth potential.
Complementing Taco Bell’s Growth and Innovation Ecosystem
Live Más Café complements Taco Bell’s other innovation efforts, such as the Cantina format, which offers a custom menu and alcoholic beverages in urban markets. The Cantina brand has expanded to dozens of locations since its debut in Chicago a decade ago. Despite inflationary pressures and a 75.5% price increase since 2019, Taco Bell has maintained customer loyalty and sales growth, outperforming many competitors. The chain reported a 4% same-store sales increase in Q2 2025, contrasting with declines among other fast-food operators.
“We represent a significant portion of Yum’s operating profit and continue to be a primary growth engine,” said Montgomery.
Yum Brands is scheduled to report third-quarter earnings on November 4, 2025, with Taco Bell’s performance expected to be a key highlight.
FinOracleAI — Market View
Taco Bell’s Live Más Café initiative reflects a strategic pivot toward beverage-led growth, targeting younger demographics with curated, experiential drink offerings. This approach leverages evolving consumer preferences for specialty beverages and positions Taco Bell to expand its revenue streams beyond traditional food sales.
- Opportunities: Expansion of beverage portfolio can drive incremental sales and enhance customer engagement, especially among Gen Z and millennials.
- Risks: Limited customization might alienate consumers who prefer personalized options; operational challenges in integrating café concepts within existing outlets.
- Success of beverage innovation may increase brand differentiation and support growth in competitive fast-food markets.
- Data-driven menu optimization from café operations can inform broader product development and marketing strategies.
Impact: Positive — Live Más Café reinforces Taco Bell’s position as an innovation leader within Yum Brands and the broader quick-service restaurant sector, enhancing growth prospects through beverage diversification.
