Competitive Analysis

LET’S TACO ‘BOUT IT

To better understand the secret behind turning an everyday food item like a hot dog into a pop culture symbol, we took a look at the acclaimed taco. We celebrate them on Taco Tuesdays, Cinco de Mayo, and even National Taco Day (October 4th). In 2017 alone, Americans consumed a paltry 4.5 billion tacos,[15] compared to 20 billion hot dogs, yet the emotions associated with the taco are far more positive than those of the hot dog.[16] So, we had to ask: what started the rise of the taco?

AN APPETIZING APPROACH

Looking at the taco phenomenon, we identified 3 major factors that led to their success:

TOP DAWGZ

Sure, tacos are an exceptionally scrumptious snack sold at a cheap price, but what’s the big deal?! Younger generations are the big deal. Young Millennials and older Generation Z are the target demographic for almost every major fast food chain across the US, despite the narrative that they reject fast food. They have a need for self-expression, and do so by rebelling against healthy eating trends, specifically using the power of the internet. With social media as Millennials’ main form of communication, it’s easier now than ever to show brand loyalty through posts, tweets and alternative merchandising.[17] Strategic branding placed tacos in the spotlight as a fun and quirky food trend. The taco has used these trends to its advantage. Diana Kelter, a senior Trend Analyst at Mintel says, “every category is going to have to look outside of the box and collaborate with different industry partners in order to stay relevant.”[18] That’s exactly what the taco did by combining food, clothing, and social media to stand out.

TACO VS. HOT DOGS

So how does any of this relate to hot dogs? Well, both foods have unparalleled similarities: from the conveniently customizable options in terms of both toppings and price to regional pride, highspeed service, and their connection with celebratory events. Using what we learned from the taco industry, the hot dog is more than qualified to take the crown as America’s and Millennials’ favorite fast food.

Targeting a group of individuals who value self-expression and rebellion against social norms. Using experiential and postable events to extend reach via social media. Working with different industry partners such as technology and fashion to stay relevant.