Taco Bell to unveil U.S. Taco, a fast-casual taco mash-up concept

Taking the nation’s reputation as a melting pot society to heart, Taco Bell is unveiling an alter-ego restaurant with a menu of American-inspired tacos and craft beer.

The Irvine-based fast-food chain is making a play for the $34 billion fast-casual space with U.S. Taco Co. and Urban Taproom. The edgy Day of the Dead-theme brand features $4 premium tacos, spicy steak-cut fries and alcohol-infused shakes. Each taco is a twist on classic regional dishes – from an East Coast lobster roll to Texas-style brisket.

U.S. Taco, opening this summer in Huntington Beach, is the first of what could be dozens across the country – and the world, Taco Bell Chief Executive Greg Creed said.

“I would love one day to see 1,000 of these,” he said. “But let’s not get that far ahead of ourselves. We’re opening a restaurant and seeing what happens.”

Because the menu is based on American meals, U.S. Taco won’t be selling burritos, beans, rice or tortilla chips.

“This is not a Chipotle walk-along,” said Creed, who spoke exclusively about U.S. Taco to the Register and an industry trade publication.

The core U.S. Taco menu includes a lineup of 10 tacos and daily chalkboard specials such as the Winner Winner, fried chicken lightly drizzled in “S.O.B.” (south of the border) gravy and wrapped in a soft flour tortilla. The Southern Squealer features pulled pork with peach jalapeno barbecue sauce. The Smokey & The Bandito is stuffed with Texas smoked beef brisket topped with salsa and melted Oaxacan cheese. Sides include habanero dusted steak-cut fries and shakes spiked with Guinness and tequila.

Jeff Davis, president of the food-service consulting firm Sandelman & Associates, said launching a chain from scratch is “highly risky.”

“That being said, they’re doing a lot of things right,” said Davis. “They’re building a brand based on a completely new concept in an area they have expertise in.”

Restaurant industry strategist Dennis Lombardi agreed. “Certainly it is a bold move, but it’s also a very plausible strategy to test and exploit,” said Lombardi, a fast-food consultant with Ohio-based WD Partners.

STARTING FROM SCRATCH

Creed said U.S. Taco is not a Taco Bell spin-off.

“Taco Bell is Mexican-inspired, and U.S. Taco is American-inspired,” Creed said while sampling a plate of “loaded” fries and a fried chicken taco at the chain’s Irvine test kitchen last week.

The store design and cooking methods also differ from Taco Bell. An open kitchen allows U.S. Taco diners to see meals being cooked or grilled to order. The dining room features bright yellow, blue and red colors, wood tabletops and floors, subway tile and contemporary lighting.

Restaurant strategist Lombardi said fast-casual ventures are an attractive option for big, fast-food players because there are lower overhead costs. Stores are typically smaller and don’t include drive-through lanes, and menu prices are higher.

Other legacy fast-food chains jumping on the fast-casual bandwagon include the parent company of Wienerschnitzel. Last year, Irvine-based Galardi Group debuted Two Madres Mexican Kitchen, a Chipotle-style build your own fresh-Mex meal joint in Mission Viejo. Galardi is looking to expand the concept.

“Quite frankly, I’m surprised I haven’t seen more of it,” Lombardi said.

A SLIGHT HICCUP OVER ALCOHOL PERMIT

The first U.S. Taco restaurant is slated to open at The Strand, a hipster-driven coastal center in downtown Huntington Beach. So far, Taco Bell has invested roughly $500,000 on the startup, Creed said.