Taco Bell Reinvents Itself, Reinvigorates Sales

The fast-food Mexican chain posted an 8% sales bump in U.S. stores.

September 04, 2013

IRVINE, Calif. – What can you do when a 50-year-old fast-food chain has ceased to be relevant to today’s customers? In the case of Taco Bell, you go back to the drawing board and come out with new products, new ad campaigns and a new vision, Advertising Age reports.

Taco Bell President Brian Niccol acknowledges that the chain’s “food-as-fuel” marketing campaigns prior to 2012 had let the brand “become too much of a punch line.” The problem was that customers weren’t laughing — or buying, with Taco Bell registered three years of flat sales ending in 2011.

Last year, the company gained an 8% jump in same-store sales for U.S. locations — more than double McDonald’s 3.3% gain during the same time period. Boosting sales was Taco Bell’s most successful debut of a new product in its history: The Doritos Locos Tacos.

The extremely popular menu item sold 100 million during the first 10 weeks on the board, and launched a product line that keeps sales growing. This year, the company added Cool Ranch Doritos Locos Taco and Fiery Doritos Locos Tacos. More than 600 million Doritos Locos Tacos and Cool Ranch Locos Tacos have been sold in the United States so far.

Along with the new products, Taco Bell brought in a Cantina menu with more healthful fare and has been piloting a Power Protein menu and breakfast. Its marketing message has moved away from “Think outside the bun” to “Live mas,” with heavy emphasis on social media to reach Millennials.

“You have to go to these other screens, because in the end, kids in college dorm rooms don't even have TVs, they're using laptops,” said Niccol. Social media platforms include Facebook, Twitter, Vine, Pheed and Snapchat.

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