The brand has applied for a liquor license at its Wicker Park location in Chicago, according to Eater.
Taco Bell tells Eater that the new location will have a "completely new urban restaurant design."
Serving alcohol could help Taco Bell gain a more upscale image like fast casual chains Chipotle, Rusty Taco, and Rubio's.
Taco Bell's parent company opened a gourmet taco concept called U.S. Taco Co., which was supposed to serve boozy milkshakes.
Those plans were postponed after the brand was unable to obtain a liquor license.