One fast food licensor exiting the kids’ meal market

Taco Bell, included in the National and Super Regional Restaurants category in The Licensing Letter Food/Beverage Licensing Report, plans to be the first national fast food provider to abandon the toy-with food marketing strategy, according to CEO Greg Creed, stating offering kids’ meals was inconsistent with a brand targeting “Millennials.” USA Today reports that regional chain Jack-in-the-Box rid themselves of the strategy in 2011.

According to the FTC, fast-food chains spend about $580 million annually marketing to children under age 12, and over 58% of that spend is on the licensing and production of toys. The impact at Taco Bell will not be significant, as the firm had already stopped promoting its kids’ meals, and the total kids’ meals sales at Taco Bell are estimated to be one-half of 1%.