Taco Bell's nuggets return this month and will become permanent by 2026, with more crispy chicken items on the way

• Taco Bell is bringing its chicken nuggets back for a limited time starting April 24.
• The chain is betting big on crispy chicken and plans to make nuggets permanent by 2026.
• The chain is also investing in other crispy chicken products, like chicken strips.

Taco Bell is finally bringing back its fan-favorite chicken nuggets after they sold out prematurely following their launch last December.

Taco Bell will relaunch its chicken nuggets on April 24, following positive fan feedback and as part of the chain's push to expand its chicken menu.

The nuggets differ from other chains in that they're marinated in a jalapeño buttermilk and coated in a tortilla-chip crumb and breadcrumb coating. When we compared them to other chains' nuggets, they were our clear favorite thanks to their crunchy breading and unique sauce flavors.

The chain's new lineup of dipping sauces, including Hidden Valley Fire Ranch Sauce, Bell Sauce, and Jalapeño Honey Mustard, will also be back for a limited time.

The chain's new Mike's Hot Honey Diablo Sauce is expected to be released halfway through the launch.

Taco Bell's big bet on crispy chicken is fueled by Gen Z's appetite

"I think from a cultural standpoint, Gen Z is eating more crispy chicken and chicken in the category than any other generation," Taco Bell's CMO Taylor Montgomery told Business Insider on April 15.

"As a youth brand, we need to evolve to where youth culture and the next generation of consumers are going," Montgomery said.

Montgomery said the chain's initial launch of chicken nuggets far surpassed expectations. The limited-time offer sold out after its first week, leaving many diners empty-handed.

During the week the chicken nuggets were available, nearly 1 in 6 orders included chicken nuggets, according to the chain.

"The demand absolutely blew us away," he said. "So we listened to culture and we listened to what our fans said."

A five-piece nugget with one dipping sauce starts at $3.99, and a 10-piece nugget and two dipping sauces starts at $6.99.

Montgomery said the chain expects the nuggets to be around for eight weeks and then leave menus again before becoming a permanent addition to the menu by 2026.

"We take a lot of shots and I would say crispy chicken nuggets was a shot last year. It was a risk," Montgomery told BI. "We didn't know if it was going to work, but we got a lot of new data points between now and then. It helped us get the forecast right."

Crispy chicken is a massive opportunity for fast-food chains

At Taco Bell's annual Live Más Live Consumer Day in March, CFO Neil Manhas shared the huge growth potential in the categories the chain is focusing on this year.

In the presentation, Manhas highlighted the size of the crispy chicken category, worth $26 billion within the QSR landscape, and the fries category, worth $20 billion.

He said the category size of non-fried chicken menu items, like those featured on the chain's Cantina menu, was $12 billion, indicating the power of fried chicken over other chicken products.

CMO Taylor Montgomery added that crispy chicken and items like Nacho Fries boost each other's sales. The chain told BI that in December, 45% of chicken nugget orders also included Nacho Fries.

With the relaunch, the chain is offering orders of nuggets, Nacho Cheese Fries, and a large fountain drink as a combo meal to build on that success. The combo starts at $5.99 for a five-piece meal and $8.99 for a 10-piece meal.

Taco Bell is gearing up to launch even more new menu items, including chicken strips

The chain said that 95% of innovations in the Taco Bell test kitchen feature chicken as the premier protein, and new menu items like chicken strips are also on the way.

Though not many details about the chain's forthcoming chicken strips are known, Montgomery said the product design will be very similar to the chain's nuggets and feature the tortilla chip coating.

"Our way in is how do we actually create a little bit of a crispy chicken twist on some of the forms that consumers know and love us for," Montgomery said.

Montgomery said other upcoming chicken products include a crispy chicken taco and a crispy chicken burrito.

The chain also hopes to expand its dipping sauces, with a new Spicy Ranchero sauce and an avocado ranch sauce coming soon.

"A big trend among food culture, but really among Gen Z, are sauces," Montgomery said. "From a Taco Bell standpoint, we love that because 'saucy' is one of our key equities."

"Sauces are becoming a gateway to experiment and try new flavors and new cultures," he continued. "And I think for us as a Mexican-inspired brand, that's really exciting."

Montgomery said that the chain has "a lot more sauce innovation coming," and it's an opportunity for the chain to collaborate with other brands with cult followings and introduce more people to the Taco Bell brand.