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In 1962, Glen Bell opened the doors to the first Taco Bell in Downey, CA. In
1964, the first Taco Bell franchise was purchased by Kermit Becky, a former member of
the LA Police Department. (Taco Bell Corp.) The Taco Bell chain became a publicly
In 1978, three years after Bell’s resignation as Chairman of the Board, PepsiCo
showed tremendous interest in buying the Taco Bell Franchises. “The deal was some six
months in the making and ended with Glen Bell as a major PepsiCo shareholder and
millions richer”. (Taco Bell Corp.) In 1988, Taco Bell started its value menu initiative,
which was an industry first and offered three tier pricing on its menus making Taco Bell
Restaurants buys the Taco Bell franchise from PepsiCo and later that year “Taco Bell
introduced its new multi-spot advertising campaign featuring the popular talking
Today Taco Bell has a vast franchise network with over 5800 restaurants in the
U.S of which 80% are owned and operated by individual franchises. With over 1.8 billion
in revenue in 2005 and over 175,000 employees, Taco Bell has come a long way since its
inception in 1962.
In addition to Taco Bell’s success, the corporation has faced some unfortunate
establishments in New Jersey. Shortly after, more E. coli bacteria were discovered in
locations in New York, Pennsylvania, and Delaware. It was confirmed that more than 65
people were infected. The outbreak was described as the largest E. coli outbreak in the
Due to the gravity of the issue, strict precautions were put in place. Numerous
Taco Bell locations were closed in New Jersey, New York, Pennsylvania, and Delaware.
In early December 2006, state and federal officials went to McClane Food Services in
Southern New Jersey, which is the regional distribution center for Taco Bell. In addition
to the preliminary tests performed on the green onions, the New Jersey health department
While the outbreak was great, the intensity of the illness from the bacteria varied.
In New Jersey, two individuals were in critical condition with hemolytic uremic
syndrome, which can permanently harm the kidneys. Other victims were hospitalized and
later realized, while others did not become sick but were infected when tested. (Serrano)
By mid-December 2006, the Centers for Disease Control (CDC) stated that the E.
coli outbreak was over. They also said that despite initial beliefs, the E. coli was linked to
lettuce, and not green onions. Taco Bell then released a statement stating that the
contaminated food had been discarded and the affected establishments were “re-
sanitized”. At that point in time, the corporation shared their belief that their food was
However, from a public relations point of view, Taco Bell should have done more
to assure the public.
cartera.”
The worst aspect of Taco Bell’s public relations strategy was their delay to
address the issue. According to their first press release, the outbreak began November
29th. Their first press release addressing the problem was dated December 4th (Taco Bell
Corp.). It took Taco Bell five days to address the issue. Had they addressed the problem
immediately, Taco Bell could have prevented more customers from being ill from E. coli
Taco Bell president, Greg Creed finally addressed the situation December 14th in a
commercial video addressed to the public after the situation was declared “over” by the
CDC. (This video can be seen by going to our company> latest news> December 14,
2006. The video will be in the right hand corner as well as a company letter from Greg
Creed.) Taco Bell restating the tragedy after it has happened makes the situation worse by
Greg Creed as a speaker did not deliver the message in an ideal method.
Immediately upon speaking one can tell that the president has an accent from a different
country. American audiences must have someone that they can relate to. By using a
representative from a different country, Taco Bell distanced themselves from their
audience. This leaves the audience to ponder: As a foreigner, does the president even eat
During the commercial, Creed’s displays a lack of facial expression. This shows
that the commercial was rehearsed but not genuine. In a time of crisis, the public needs a
company figure that they can relate to. Taco Bell would have done better to use the
northeast regional manager or a more charismatic figure to speak. Taco Bell also needed
to address the issue as soon and as frequently as possible. Taco Bell was invited to
participate on MSNBC to discuss the tragedy and declined the offer on December 5th.
MSNBC would have offered Taco Bell an immediate free nationwide opportunity to
Taco Bell’s negligence cost them big: twenty million dollars to be exact. Most of
it was found in lost sales. During this crisis, YUM! Brand stocks had dropped 6 points on
the NYSE and had incurred several lawsuits as a direct result of this tragedy (MSNBC).
Prior planning prevents poor performance and keeps the profits in your pockets Taco
Bell.
A little over a year later, Taco Bell was hit with a second crisis involving a rat
infestation in a Taco Bell restaurant in Greenwich Village, New York City. The
infestation was first noticed in early February 2007. A video, recorded by a customer and
given to the media, was released showing the Taco Bell/ KFC restaurant completely
infested with rats. According to a video clip from Fox 5 News, there was “evidence of
rats in the food areas,” at this restaurant. The clip continues and states “one employee
says that workers don’t wear gloves and that rats come into contact with food on a regular
basis.” (Rats).
After the health department saw this video clip on television, the restaurant was
closed indefinitely and health officials had meetings with the managers of the restaurant.
This was also not the first time that this restaurant had health department violations.
However, according to QSR magazine, the restaurant passed health inspection the
After sanitizing the store and getting a clean bill of health, owner of the Taco Bell
franchise, YUM Brands issued a statement, “We want to assure our customers that
nothing is more important to us than food safety and their health” (Minnick). However,
brand experts think that it is going to be very difficult for Taco Bell to regain its
No crisis is a small crisis. What happened in Greenwich Village over a short span
before the company could even release a statement addressing the issue, the video of rats
on the floor of the Taco Bell had already crossed through the internet and other news
According to Ad Age reports 1,000 blogs had cited or spread the story and
footage of the rats in the restaurant the day after the incident occurred. A search on
Google News for “rats and Taco Bell” yielded 600 stories posted on websites all over.
Yum! Brands eventually caught on, despite the fact that they were a late in responding to
the rat crisis. It is a positive change that marketers are starting to understand the role of
Yum! Brands saw the crisis as local, which was a huge miscalculation. “There’s
nothing more viral on the negative side than rate”, said Pete Blackshaw, chief marketing
officer, Nielsen Buzzmetrics. “In the world of fast food, hygiene is the number 1 driver,
and rats take it to the food hygiene on steroids level. Rats are Defcon 5.”
Taco Bell finally put out their press release saying “there is no immediate threat”
to consumers. One reviewer took this to mean that the company seems to be more
interested in reopening its restaurants quickly rather than taking time to make sure that
every Taco Bell in the country has been sanitized by employees and then inspected by
health officials. The PR response to this the viewer stated “actions speak louder than
words. Yum! Brands is putting out a message that profits come before people’s safety by
Works Cited
Hershberg, Peter. “Taco Bell, Connoisseurs of Damage Control.” Reprise Media. N.p., 1
<http://www.searchviews.com/index.php/archives/2007/03/taco-bell-
connoisseurs-of-damage-control.php>.
Johnson, Alex, et al. “Taco Bell Acts after E. Coli Outbreak.” MSNBC.com.
<http://www.msnbc.msn.com/id/16035176/>.
Macarthur, Kate. “Taco Hell: Rodent Video Signals New Era in PR Crises.” Advertizing
article_id=115184>.
Minnick, Fred. "Taco Bell Franchises Can't Discuss Rat Problem." QRS Magazine.com.
NPR. “E. Coli Forces Taco Bell to Pull Green Onions.” NPR.org. NPR, 6 Dec.
<http://www.npr.org/templates/story/story.php?storyId=6588685>.
“On the Money.” CNBC On the Money. MSNBC. MSNBC, n.p., Dec. 2006.
Television.
<http://www.msnbc.msn.com/id/21134540/vp/16169419#16169419>
"Rats Take Over KFC/Taco Bell." Youtube.com. Fox 5 News, 23 Feb. 2007. Web. 4 Nov.
2009. <www.youtube.com>.
Serrano, Alfonso. “E. Coli Outbreak Linked to Taco Bell.” CBSNews.com. CBS
News, 4 Dec. 2006. Web. 7 Nov. 2009.
<http://www.cbsnews.com/stories/2006/12/04/health/main2227678.sht
ml>.
Taco Bell Corp. “Our Company: Latest News.” TacoBell.com. Taco Bell