...Case Presentation: Taco Bell Case Presentation: Taco Bell Pat Lauscher and Jesse Paprocki BUS 754: Information Systems Mgmt Spring 2003 HISTORY (EVENTS) Company Focus: John Martin joined Taco Bell in 1983 as president and CEO, having previous executive level experience with other fast food chains. He discovered that the company didn’t know what business it was in, so he quickly focused Taco Bell on the fast food industry. Process Improvements: 1983-1988: Strong growth in the 60s and 70s came to a halt in the early 1980s as the fast food industry began showing signs of maturity. To deal with the potential threat of a maturing business, Taco Bell began a series of process improvement initiatives that really changed the way it did business. These improvements included increased restaurant capacity by modernizing its restaurants to include drive through windows, increased seating capacity, electronic point of sales systems (to replace plastic order boards), and reconfigured food production areas. Taco Bell also added some new menu items during this time. 1988-1991: Continuing to feel the effects of an industry margin squeeze, Martin commissioned two studies that tuned the company in to what the customers really valued, FACT (Fast, Accurate, Clean, and Temperature). In response, the organization stopped viewing quality and price as incompatible tradeoffs. The K-minus program transformed the kitchen into a heating and assembly unit and centralized cooking...
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...Taco Bell in Japan (Round Two Japan, will this time be a Fiesta or Siesta?) By Phillip Smith As a child, growing up on the West Coast of America, Taco Bell, was as common as McDonalds, with locations in every neighborhood. Its classic chicken quesadilla and bean burrito were staples of my college diet and I could not imagine a fast-food landscape without the spicy taco-sauce. Although, since moving to Japan in 2005, I’ve had to settle for eating Taco Bell only when traveling outside of Japan. That being said, every other major US fast-food chain seems to be serving its notable favorites in the land of the Rising Sun. For example, McDonalds operates over 3,100 units (Inagaki, 2015), Kentucky Fried Chicken has 1165 locations (Yum!’s, 2015) and Starbucks has 1117 (Loxcel, 2015); but where is Taco Bell? On 21 April, 2015, the multinational fast-food chain answered back with its launch into the Japan market with a new location in Shibuya, Tokyo. This is not Taco Bell’s first launch in Japan. Back in the late 1980’s it opened stores in two markets, Tokyo and Nagoya (Matayoshi, 2015). A few years later in the early 1990s, they closed all the Japan operations, abandoning the country. Will the second attempt be different? How will marketing play a role in its success? Did they invest in market research to gain insight in the lay of the land? How will its competitive environment contrast its first attempt to penetrate the Japan market? What type of competitive strategies...
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...to why Taco Bell restaurants should be an investment. This report is designed for Ms. Yolanda Yorbon, the current boss at Yolanda’s Yummy Restaurant. She has asked me and my research team to do some investigative work and present it in a long formal report. This will help her to determine which fast food franchise she should make an investment in between McDonald’s, Taco Bell, and Burger King. I will be examining the background behind the business, start-up costs, commitment, locations, requirements to work, requirements to franchise, and the ongoing fees for Taco Bell. Ms. Yolanda’s expertise is in the area of Mexican food. She really wants to be successful in other restaurant business ventures, and this is the way to provide the answers. Taco Bell Corp., based in Irvine, California, is the nation's leading Mexican-style chain. Taco Bell was founded by Glen Bell who first opened a hot dog stand in 1946 when he was 23 years old. Six years later, he sold the stand and opened a new one two years later, this time selling tacos under the name of Taco-Tia. Bell sold the El Tacos to his partner and built the first Taco Bell in Downey in 1962. Taco Bell Corp. started franchising in 1964. In 1970, Taco Bell went public with 325 restaurants. In 1978, PepsiCo purchased Taco Bell from Glen Bell. Taco Bell sells tacos, burritos, quesadillas, and many other Mexican foods. This would be great for Ms. Yolanda because her expertise is in Mexican food. Before starting up a Taco Bell franchise...
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...Taco Bell Analysis Introduction In our fast paced world, fast food restaurants are very popular and fit right in. People enjoy the fact that they can get prepared food fast and at a reasonable price. There are a lot of fast food restaurants that offer you the option of buying a hamburger and French fries. So when Taco Bell came along and introduced to the fast food world Mexican food, it received a warm welcome. Taco Bell became an instant success. From the origination in 1954 to the present Taco Bell has been allowing their customers the opportunity to choose a variety of Mexican food. The organization and all subsidiaries/strategic business units Taco Bell is a subsidiary of Yum! Brands. In May of 2002, Tricon Global Restaurants Inc. changes its name to Yum! Brands, Inc. Yum! also operates or licenses Pizza Hut, KFC, and WingStreet. Prior to 2011 Yum! also owned Long John Silver’s and A&W Restaurants. It is based in Louisville, Kentucky, it is the world’s largest fast food restaurant company in terms of system units---more than 39,000 restaurants around the world in over 125 countries. In 2011, Yum!’s global sales totaled more than $12 billion. Taco Bell alone serves more than 36.8 million consumers each week in more than 6,000 restaurants in the U.S. Historical perspective on the organization. In 1954, Glen Bell opened the doors to his first Mexican food restaurant called “Taco Tia.” He drove around in an old bread truck handing out sombreros to everyone...
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...microenvironment refers to the internal environment of the company such as consumer/customer, Supplier, competitors, the media (public) and in the microenvironment have the internal environment that is men, money, machinery, materials and minute. The micro environmental factors that Yum! Brands, Inc needs to consider before attempting to open up Taco Bell stores in the Malaysia markets are the supplier, customer, competitors, the media (public) and the internal environment of the Taco Bell that is men or employees, money, machinery, materials and minute . To open up the Taco Bell in Malaysia market, Yum! Brands must consider with the suppliers in micro environment. Yum! Brands must make sure that Taco Bell in Malaysia market have the supplier that can supplies all the raw materials to prepare the Taco Bell’s product and other goods such as packaging material in the Malaysia market. Yum! Brands must to identify all the suppliers in Malaysia that can supply the goods to them and deal business with them for example Ayamas Food Corporation and Ramly Mokni Sdn Bhd can supply the meat to the Taco Bell restaurant. Other than that Taco Bell must ensure that the suppliers are not outside from the Malaysia, when the supplier logistic is far so the cost of delivery will be high....
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...Yum Brands, Inc. is a United States-based Fortune 500 corporation. This world largest fast food company owns more than 39,000 restaurants around the world in over 125 countries. Well-known brands including Taco Bell, Kentucky Fried Chicken, Pizza Hut, and WinG Street all belong to the Yum Brands, Inc. Yum Brands Inc.’s total sales for 2011 was more than $12 billion, and they are definitely one of the leaders in the fast food industry. Yum Brands, Inc. was actually the Tricon Global Restaurants, Inc., which was renamed in 2002. Tricon Global Restaurants, Inc. was founded in 1997 as an independent company from the former fast food division of PepsiCo. PepsiCo purchased Taco Bell and Pizza Hut in 1970s and Kentucky Fried Chicken in 1980s. After becoming an independent company from PepsiCo, Tricon Global Restaurants, Inc. continues to grow and has acquired Long John Silver’s and A&W All American Food Restaurants. Yum Brands, Inc. is not only a strong player in the domestic market; they are also very successful in other foreign markets, such as China and Canada. With more than 1.4 million associates all over the world, Yum Brands, Inc. is confident with their position in the global market. Although the global fast food industry is very competitive, Yum Brands, Inc. is holding an advantage position. China is a good example to look at Yum Brands, Inc.’s successful expansion in the global market. Although their competitor, Mc. Donald’s also performs very strong in the Chinese...
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...Public Relations Director of Taco Bell Corporation Copy: Taco Bell Corporation Senior Executives and Legal Dept. From: Dean Hegwood, V.P. Risk Management Subject: Unfavorable Media Exposure within 48 hours Taco Bell Corporation’s Director of Public Relations has in the last few hours received a phone call from the company’s Government Relations Team. The Government Relations Team has learned that a special interest group known as “Friends of the Earth” will be releasing information on Monday September 18, 2000 to the Washington Post. This press release will be implicating the Taco Bell labeled taco shells which are manufactured, distributed, and sold by Kraft Foods, Inc. as containing a genetically modified corn ingredient unapproved for human consumption. The substance is known as StarLink and is a product of Aventis. Background * On August 1, 1996, Taco Bell and Kraft Foods, Inc. entered into a licensing agreement for Kraft Foods to manufacture, distribute, and sell Taco Bell branded taco shells in the retail grocery market. * In August 1998, the EPA granted Aventis registration of protein “Cry9c” known as StarLink as a plant pesticide. * In August 1998, the EPA granted Aventis approval to use StarLink only for commercial use as animal feed. Precautions must be in place to ensure prevention of StarLink from entering the human food supply. * In April 1999, the EPA denied Aventis request to allow StarLink to enter the human food supply due to lingering concerns...
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...Paul Rollinger GBS 151 10am 30 November 2015 Taco Bell Report/Presentation Introduction Taco Bell is a chain of fast food restaurants that serves quick Mexican-style food. The company was founded in 1962 by Glen Bell. Bell served what his customers referred to as “Tay-Kohs.” Over time, more items were added to the menu and were considered an American twist on modern Mexican cuisine. In addition to tacos, Taco Bell restaurants also serve burritos, quesadillas, nachos, gorditas, and other specialty items to its customers. Market Analysis Taco Bell represents the largest portion of the Tex-Mex, or “Americanized” Mexican food. It is even larger than most authentic Mexican food restaurants combined. Close competitors to Taco Bell include Del Taco, McDonald’s, Subway, and Jack-in-the-box and Filiberto’s in the western United States. More restaurants have been opening very quickly in the U.S. and globally for the past 50 years. Most recently, expansion to India has been a plan for Taco Bell and operations have already taken place in 2014. It is clear that Taco Bell may dominate its competition in any area that it operates and will be successful worldwide. Recent History With approximately 6200 restaurants Taco Bell is one of the largest quick-serve restaurants in the world. As of 2015, the company has just over 5,000 franchisees who own and operate Taco Bell restaurants. From 2014 to 2015, Taco Bell has had a strong sales growth with no sign of slowing. Recent changes to...
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...For the exclusive use of M. Alshahri, 2015. W14536 TACO BELL: A MEXICAN-INSPIRED RESTAURANT IN INDIA Lubna Nafees, Ashok Bajpai, Akshay Kumar, Anoop Chand, Maryne Ann James, Bonney Luke Thomas, Jayakrishnan B. Nair, Kunal Hazari and Garima Konda wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2014, Richard Ivey School of Business Foundation Version: 2014-10-29 With four outlets of Taco Bell opened in Bangalore by December 2013, Niren Chaudhary, managing director of Yum! Restaurants India, felt eager to expand its market offerings. He pulled out the morning newspaper and impatiently ruffled through the pages until he reached the business section. He paused briefly, folded the paper and leaned forward to read better. Focusing his attention...
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...TACO BELL IN INDIA - CASE STUDY QUESTIONS: Also, please consider and discuss where the company is now, a few years later, with regard to Taco Bell in India. Have they achieved higher brand awareness, growth and profitability/success? If not, what suggestions do you have for them? What does your team suggest for Taco Bell in the future? Are there other regions for expansion? YUM! Brands, Inc. now operates in six divisions: YUM Restaurants China (China or China Division), YUM Restaurants China (YRI or International Division), Taco Bell U.S., KFC U.S., Pizza Hut U.S. and YUM Restaurants India (India or India Division). Taco Bell has 7 stores in India, which located in three cities: Bangalore (Sony World Signal, Innovation Mall, and Brookefield Mall), Mumbai (Oberoi Mall, R City, and Viviana Mall), and Delhi (Ambience Mall). According to The Economic Times (7 Jun, 2015), Taco Bell announced its expansion into New Delhi through a tie-up with Burman Hospitality, its first franchisee partner in India. Cooperated with Burman Hospitality, Taco Bell India plans to take the store count to 25 restaurants in the next 18-24 months. The General Manager of Taco Bell & Pizza Hut, Unnat Varma, said that with a strong proof concept in Bangalore and Mumbai, they are eager to increase their footprints across India, such as Punjab, Chandigarh, and Uttarakhand. He also indicated that Taco Bell is aim to provide their signature Mexican-inspired food and break-through value to the customers...
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...paper deals with the major forces in the environment as they affect McDonalds. Competitive Forces McDonalds is the world’s number one fast-food company by sales, with more than 31,800 flagship restaurants serving burgers and fries in more than 100 countries. Almost 30% of its locations are company-owned; the others are run by franchisees. Sales in 2005 were $20,460.2 million and 447,000 people were employed world wide. [i] McDonalds’ major competitors are Burger King, the number two hamburger chain, and Wendy’s, number three. McDonalds also competes with Yum Brands, Inc., “which actually is the largest fast-food operator in the world in terms of number of locations, with more than 34,000 outlets in more than 100 countries. Yum Brands restaurants include the number 1 chicken fryer, KFC (with more than 13,500 units), top pizza joint Pizza Hut (about 12,500), and quick-service Mexican leader Taco Bell (more than 6,000). Yum Brands also operates the Long John Silver’s seafood chain, along with several hundred A&W root beer and burger stands”[ii] Economic Forces McDonalds is an elastic good and has many substitutes, from the competitors mentioned above to food cooked at home. Given that it is less expensive to cook at home, people whose incomes are squeezed may decide to avoid fast food all...
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...Million American are considered obese. We live in a world, where everything is almost instant. We can go to a drive up window and receive a fast, hot meal in less than 3 minutes. Everything is about fast. That is the Mc Donald's golden years. But sometimes, going too fast is not good for us. Customers now substitute healthy food for a quick cheap meal, a healthy diet, included with healthy habits, can change our life. These changes are great for our world, but it is hurting the Mc Donald's profits. Consumer tastes and preferences are changing and the [fast-food] industry need to be able to adapt to them. There is a huge opportunity to develop new products that appeal to the health conscious customer. To be more specific, they need to develop new products that appeal to young, health conscious women. Because consumer tastes are changing there is an opportunity to develop new healthier product lines that appeal to the new tastes of consumers that satisfied their tastes. Question3: What are Mc Donald's strengths and weakness and what conclusion do you draw about it future? Strengths: - Industry's leader: McDonalds has been the leader in the fast-food industry for decades, literally changing the way Americans ate. Like every other business, McDonald's is subject to opportunities and threats in their specific and general sectors. - McDonald's financial condition seems to be fair, but on the rise and could go back to being strong in the near future. The company has enough...
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...Abstract The fast food industry mostly known as a quick service industry, is constantly growing at a rapid pace in hopes of keeping up with the demands of the market. As the routines of families and single family households have become more and more chaotic, they are looking for quick meals as a substitute for dining out and cooking at home. Due to such craze, fast food restaurants such as Taco Bell, have gained a top position in the industry where customers can have a hot quick meal in a flash or we may say less than five minutes. A case study is done by a reporter who became a Taco Bell employee for a few hours so that he could analyze the queueing model on how customer order processing was done at Taco Bell. The process will review the drive-thru process as well as the process when a customer places an order inside. The purpose of this paper is to analyze, discuss and make suggestions on how Taco Bell can improve its present and future position in the Quick Service restaurant industry. Not only today has Taco Bell been focusing on quick service but ever since “1988, Taco Bell introduced six core-menu items for the reduced price of 59 cents and offered free drink refills. Taco Bell has since continued to change and innovate. Its new strategy meant restructuring the business to become more efficient and cost-effective. To do this, the company relied on an integrated set of operations, research models, including forecasting to predict customer arrivals, simulation...
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...Taco Bell is an American chain of fast-food restaurants based in Irvine, California. A subsidiary of Yum! Brands, Inc., they serve a variety of Tex-Mex foods including tacos, burritos, quesadillas, nachos, other specialty items, and a variety of "value menu" items. Taco Bell serves more than 2 billion customers each year in more than 6,500 restaurants mostly in the U.S., more than 80 percent of which are owned and operated by independent franchisees. History Founding and growth Taco Bell was founded by Glen Bell, who first opened a hot dog stand called Bell's Drive-In in San Bernardino, California Bell began eating there regularly, attempting to reverse-engineer the recipe, and eventually won the confidence of the proprietors such that they allowed him to see how the tacos and other foods were prepared. Several locations in the Midwestern United States were converted from Zantigo, a Minneapolis, Minnesota-based Mexican chain which PepsiCo acquired in 1986. Concepts In 1991, Taco Bell opened the first Taco Bell Express in San Francisco. This concept is a reduced-size restaurant with a limited menu, meant to emphasize volume. Taco Bell Express locations operate primarily inside convenience stores, truck stops, shopping malls, and airports. Taco Bell began co-branding with KFC in 1995, when the first such co-brand opened in Clayton, North Carolina. The chain has since co-branded with Pizza Hut and Long John Silver's as well. In 1997, PepsiCo experimented with a new...
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...and look for more benefits from the products they choose. Although some organizations' products may appear unchanged at this developed stage of a market, the more successful businesses re-work existing brands and continue to develop new ones to meet changing consumer needs. The development of strong brands has always been a feature of the fast food market. Utilizing on-site product recommendations on our Web site dramatically increases conversion rates, order size and as well building brand trust with your online customers. Industry-wide data shows that sites that have added product recommendations have experienced increases as great as: 90%+ increase in on recommended products; 45%+ increase in conversion rates; and 5% increase in the number of items per order. Multiple Recommendation Types: TACO BELL runs more than 20 different recommendation types allowing it to display multiple recommendation sets per page — making it easier for shoppers to discover relevant products while giving merchandisers more space for upselling and cross-selling products. Explicit Messaging: Unlike “We suggest” or “You might also like” recommendations, TACO BELL recommendations clearly explain why products are being recommended to a shopper (e.g. “People that viewed this ultimately bought” and “Top selling product for this item”) The result is an enriched shopping experience for your customer, and higher sales and brand loyalty for you. Testing is vital throughout the entire product development process...
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