Taco Bell revealed more than 20 upcoming menu innovations and brand partnerships during its third Live Más LIVE event held in Hollywood, Calif., earlier this month.
The fan-focused event, launched in 2024, serves as a stage for the fast-food chain to preview new products and collaborations set to debut at its U.S. restaurants in the year ahead.
Several celebrities appeared at the event, including Benson Boone, Doja Cat, Peso Pluma, and Demi Lovato, but one highly-awaited announcement stood out among fans.
“This show is built specifically for the fans, and that’s what I appreciate the most about Taco Bell,” said host Vince Staples during the event.
Taco Bell makes Nacho Fries permanent
After years of limited-time returns and strong customer demand, Taco Bell confirmed that Nacho Fries will officially become a permanent menu item later in 2026.
First introduced in 2018, Nacho Fries feature crispy fries seasoned with Mexican spices and served with the brand’s signature nacho cheese sauce.
The item quickly became one of the chain’s most successful menu launches. Taco Bell’s roughly 7,000 U.S. restaurants sold more than 53 million orders in the first five weeks following the original debut, according to Nation’s Restaurant News.
At the event, the company also unveiled Flamin’ Hot Nacho Fries, an upcoming variation paired with Flamin’ Hot Nacho Cheese sauce for an added spicy kick.
Taco Bell Nacho Fries become a fan-favorite
Since Nacho Fries’ debut, Taco Bell has repeatedly brought them back as a limited-time offering, often introducing new variations to maintain customer interest.
Nacho Fries variations tested
- Loaded Steak & Jalapeño Topped Fries
- 7-layer Nacho Fries
- Steak & Guac Nacho Fries
- Grilled Cheese Nacho Fries
- Chicken Bacon Ranch Nacho Fries
- Supreme Beef & Loaded Taco Nacho Fries
- Poutine Nacho Fries
These recurring releases helped create a “cult following” around the menu item, while generating buzz each time the fries returned to restaurants.
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Why Taco Bell tests menu items
Like many major restaurant brands, Taco Bell frequently introduces new menu items through limited-time offers or regional test markets before committing to a nationwide rollout.
This approach allows companies to evaluate customer demand, refine recipes, and reduce financial risk before expanding a product to all markets.
Test launches also create anticipation among consumers, which is essential for chains amid intensifying competition across the restaurant industry.
Menu items Taco Bell turned into permanent hits
Nacho Fries are not the first Taco Bell item to evolve from a test or limited-time promotion into a permanent menu staple.
Several of the brand’s most successful products followed a similar path.
Limited-time items made permanent
- Crunchwrap Supreme: Introduced as a limited-time item in 2005 before becoming permanent in 2006, according to Taco Bell.
- Doritos Locos Tacos: Tested in select markets in 2012 and launched nationwide the same year, according to Nation’s Restaurant News.
- Mexican Pizza: Originally introduced in 1985, removed from menus in 2020, and reinstated permanently in 2022, according to Taco Bell.
- Cantina Chicken Menu: Introduced in 2024, with several items becoming permanent menu additions that same year, according to Taco Bell.
Fast-food innovation amid rising costs and shifting consumer behavior
Restaurant chains like Taco Bell are increasingly prioritizing menu innovation as rising costs and slowing industry traffic reshape the fast-food industry.
According to recent U.S. Bureau of Labor Statistics data, prices for food away from home surged 4% in the 12 months ending January 2026.
Meanwhile, food and labor costs for the average restaurant have each risen by about 35% over the past five years, according to the National Restaurant Association.
To offset those increases, menu prices climbed an average of 31% between February 2020 and April 2025, according to U.S. Bureau of Labor Statistics data.
Despite those price increases, overall customer traffic across the food service industry declined 1% in the quarter ending June 2025, according to Circana. The slowdown has pushed many chains to experiment with new products and promotions to maintain customer engagement and strengthen brand loyalty.
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Industry analysts say experimentation alone is not enough to sustain long-term growth.
“Creating a thriving innovation ecosystem within an organization requires more than just great ideas,” said Itonics Marketing Team Lead Sophia Hoferer. “It demands a strategic approach that connects people, processes, and technologies across departments to turn those ideas into impactful outcomes.”
In a recent KPMG study, industry analysts say this type of experimentation is necessary in today’s market.
“In response to the decreasing food dollar and the empowered customer, restaurants are turning to innovative business and operating models to grab a greater share of the market,” said KPMG Restaurant Segment Leader Paul Fultz and Strategy Leader of Consumer Markets Joel Rampoldt in the study.
Taco Bell’s broader growth strategy
The decision to make Nacho Fries a permanent menu item aligns with Taco Bell’s Relentlessly Innovative Next-Generation Growth (RING) strategy, which focuses on accelerating menu innovation, enhancing its digital sales experience, and expanding the brand internationally.
With this plan, the company aims to increase the average unit volume in the U.S. and triple Taco Bell’s global restaurant footprint by 2030.
Value offerings have also become a key component of the strategy.
The chain launched its Cravings Value menu in January 2024, replacing its longstanding Dollar Cravings Menu introduced in 2014, and expanded value offerings again in 2025 with its Grilled Steak Burrito lineup.
Early results suggest the strategy is working.
In the fourth quarter of fiscal 2025, parent company Yum! Brands (YUM) reported that Taco Bell’s worldwide system sales increased 3% year over year, while same-store sales rose 7% and U.S. system sales grew 2%.
During the earnings call, Taco Bell CEO Christopher Turner said the brand saw transaction growth across all income groups, particularly among higher-income consumers, families, and younger guests.
“Taco Bell is showing us a great example of how to do that,” said Turner. “It tells us that the Taco Bell marketing and value are really resonating. The new category use occasions that the team has added are very well fit to consumer needs.”
Related: Taco Bell reveals 30 new menu items launching in 2025
