Taco Bell reveals the secret to winning over Gen Z diners

In an era where many fast-food giants are struggling to maintain footfall, Taco Bell is thriving by turning cultural relevance into a science.

While rivals lean on basic discounts, the Mexican-inspired chain has seen a 7% surge in same-store sales, driven largely by its grip on Gen Z.

CEO Sean Tresvant insists this youthful appeal is no accident. “We are a brand within culture — we understand where culture is, not only where it is, but where it's moving to,” Tresvant told Business Insider.

This "cultural fluency" manifests in viral menu launches, such as the Baja Blast pie, and savvy partnerships like their sold-out Y2K range with Hollister.

However, the real secret lies in their digital "magic formula." In 2025, active loyalty members grew by 31%, as the brand pivoted to meet Gen Z’s demand for instant rewards and exclusivity.

Unlike older generations who might wait for a deal, younger diners want immediate value and "app-only" perks. Savneet Singh, a tech expert, describes Taco Bell as a “loyalty powerhouse” that understands Gen Z wants "no hoops, no waiting until the next visit."

The strategy is paying off across all income levels. By combining digital gamification with structured value bundles, Taco Bell has created a resilient business model that defies the current economic chill.

Tresvant is confident that this deep connection with youth culture will protect the brand in any climate, stating: “This is a brand that can perform and be successful in any environment.”