According to Food & Wine, the new locations will be "cantina style", meaning they won't have a drive-thru and will serve alcohol.
If you want to check out the concept, the Berkeley cantina at 2528 Durant Ave. features an open kitchen, a menu of shareable items (besides the traditional menu), extended hours - and several microbrews.
The restaurants won't have drive-thru windows but will offer beer, wine, sangria, and slushies with tequila, rum or vodka.
Shares of Yum! Brands were sinking in afternoon trading on Tuesday.
It is unclear if New Jersey - which has around 130 Taco Bell locations - will get one of these new spots.
Some cantina locations have already been opened in locations such as Las Vegas.
Say goodbye to Taco Bell drive-thru. The fast-food restaurant is a national chain specializing in Mexican cuisine.
Taco Bell now operates more than 7,000 restaurants worldwide and 5,604 in the U.S. In its latest plan, it intends to do away with drive-thrus and serve alcohol in big-city locales.
Taco Bell's chief operating officer credits millennials' moving into downtown areas helping to revitalize urban areas. The current menu features "naked" and "dressed" egg tacos, skillet bowls and taco shells made with Doritos.