Part of the annual NRN 50 special report, The Power List profiles the 50 most powerful people who are leading and shaping change in the restaurant industry, as chosen by Nation’s Restaurant News.
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From the creation of the 2001 brand slogan “Think Outside the Bun” to the recent rollout of breakthrough products like the Doritos Locos Tacos, Taco Bell chief executive Greg Creed has piloted the 52-year-old chain toward a brand renewal.
A division of Louisville, Ky.-based Yum! Brands Inc., the nearly 6,000-unit Mexican-cuisine-inspired Taco Bell has set a goal of doubling its current systemwide sales to $14 billion by 2022. Driving that growth will be this year’s expected nationwide debut of breakfast, and the opening of 190 locations in 2014 and more than 200 openings in 2015.
Creed was Taco Bell’s chief marketing officer in 2001 when the chain launched its “Think Outside the Bun” slogan, a branding message aimed at quick-service customers looking for more than burgers and sandwiches. It was used until Taco Bell debuted “Live Más” in 2012, when Creed was CEO.
It hasn’t all been fun. Creed took the chain’s CEO post in February 2011, and the year that followed proved challenging. A lawsuit, ultimately dropped, alleged that Taco Bell’s seasoned beef had too many fillers to be defined as beef. The allegations damaged results to the tune of a 2-percent decline in 2011 same-store sales. But Creed didn’t let the lawsuit take the full blame. He said the chain’s failure to introduce compelling new products meant customers had no reason to return.
Successful Taco Bell menu items, clockwise from top left: Cinnabon Delights, Nacho Cheese Doritos Locos Taco, A.M. Crunchwrap, Fiery Doritos Locos Taco, Waffle Taco, Cantina Bowl
That ended with the March 2012 introduction of Doritos Locos Tacos.
The blockbuster product contributed much to the 13-percent increase in same-store sales for the June-ended second quarter of 2012 and the 8-percent growth for the full year. By May 2013, Taco Bell had sold half a billion dollars’ worth of tacos in Doritos shells. More than $1 billion worth has been sold to date.
Find out which moves set the Top 10 apart from the rest of The Power List. >>
• Taco Bell aims to double domestic sales
• Doritos Locos Tacos a standout success of 2012
Creed didn’t just focus on the cult-like product, which was aided by forward-thinking branding via social media campaigns. He also oversaw the introduction in July 2012 of Cantina Bell, a premium line of burritos and bowls developed by celebrity chef Lorena Garcia. The menu offerings are made with upgraded, higher-end ingredients and sold at relatively higher prices than other Taco Bell menu items.
Taco Bell hoped Cantina Bell would move the brand’s perception away from just “food as fuel” and toward “food as experience.”
As Creed said in December at Yum’s annual investor conference, “We want to go from people buying Taco Bell to people buying into Taco Bell.”
Taco Bell is now on its third iteration of the Doritos Locos Taco, with the original Nacho Cheese shell followed by Cool Ranch and then Fiery carriers. A new steak burrito was introduced under the Cantina Bell line in early 2013.
In 2014, Taco Bell will enter the breakfast game nationwide, a daypart move it has been testing for some time with items like the Waffle Taco — a waffle shaped like a taco and stuffed with scrambled eggs and sausage. Early looks at campaigns showed price points from $1.49 to $2.49 and taglines that included, “There will be breakfast envy.”
The the massive success of new menu items at Taco Bell has changed the shape of menu development in the restaurant industry, with suppliers now more heavily involved than ever and the search for crave-able items all the more important.
Contact Bret Thorn at [email protected].
Follow him on Twitter: @FoodWriterDiary
