Why Americans Love Taco Bell
Why Americans Love Taco Bell


Taco Bell is huge in the U.S. with over 7000 restaurants
across the country. It’s one of the top five
restaurant chains in the U.S. based on sales. It’s not necessarily known for its quality
but believe it or not Taco Bell has been called one
the healthiest fast-food chains. In a recent Harris Poll also
pointed out America’s favorite Mexican restaurant. I mean I love Taco Bell. It’s one of those type
of restaurants that like, tacos. I really love Taco Bell, I
love the variety they have. I would say that my girlfriend ordered about once a week because we just can’t get enough of it. Taco Bell has been known for
its innovative menu items like Doritos Locos Tacos, Nacho fries and Naked Chicken Chalupas. The company says its commitment of
value and innovation is what’s driving its continued sales growth. But how many variations of cheap
Mexican food can talk about concoct before they run out of ideas? Taco Bell now only competes for
fast-food dollars with the likes of McDonald’s and Burger King. They’re also being challenged by many
new fresh Mexican chains like Chipotle, Rubio’s, Qdoba and Baha fresh. Taco Bell’s rolling out new strategies
to stay ahead of the competition. It launched mobile food ordering, added
a nationwide delivery and now sells alcohol as some of its restaurants. You can even get hitched at a Las Vegas flagship restaurant which has a chapel and a reception area. Taco Bell has become a player
in the breakfast business as well stealing some market share from McDonald’s. But the company is also
reeling from management shakeups. Much of Taco Bell’s recent innovations
was initiated under the watch of CEO Brian Niccol. But in 2018, Niccol left the chain to helm one of Taco Bell’s biggest competitors: Chipotle. At Taco Bell, he was really kind
of the rock star and Chipotle. They got a really great CEO in poaching him from Taco Bell. And now Taco Bell must continue
to innovate without Niccol to make sure they don’t fall behind the competition. To understand how Taco Bell became
one of America’s top fast-food chains let’s go back to how the brand got its start. Taco Bell has been a pioneer in fast-food since the 1960s. The chain is credited with introducing an Americanized version of Mexican food to the U.S. The “Bell” in Taco Bell is named
after this man, Glen William Bell Jr. Glenn Bell was already a fast-food veteran
by the time he opened the first Taco Bell. Glenn started with a self-service hamburger stand in 1948 in San Bernardino, California. It was just a few miles away from
the spot where Dick and Mac McDonald were making fast-food history with their burger joint. Glenn introduced tacos at his stand
in 1951 and claims to have invented ready-made crunchy taco shells
which made it possible to prepare tacos as fast as
McDonald’s was making burgers. For the fast-food industry at that
time, speed was of essence. So for Glen Bell to really develop a
way to serve the food at a faster rate was really big for his business
and was a big piece of his success. Then in March of 1962, Glenn Bell opened the first Taco Bell in Downey, California, just outside Downtown Los Angeles. Early menu boards explained to curious
Americans the proper way to pronounce such exotic offerings
like tacos and burritos. By 1967, there were a total of 100
Taco Bell’s. In 1970, with more than 300 locations, Taco Bell became a publicly traded company. Glen Bell sold 868 Taco Bell restaurants to PepsiCo for 148 million dollars and Pepsi stock. Ultimately, Taco Bell and two other
PepsiCo fast-food chains KFC and Pizza Hut spun off and became
what is known today as Yum! Brands. That’s why you’ll see these
restaurants partner up in a single location. Since its IPO in 1997, Yum! Brands stock has seen steady growth Yum
stock prices climbed by more than 1,700 percent to hover around
99 dollars per share. In that same amount of tim, the
S&P 500 has only risen 207 percent. Those stock gains mean that Yum! Brands market value has jumped from roughly
4 billion dollars around the time of its IPO to 30 billion dollars in 2019. As of 2019, there are over
7000 Taco Bell’s in the U.S. making it the largest limited service
restaurant in the Mexican food category. By comparison Chipotle
is the second largest. It has less than half as many restaurants. Right now, Taco Bell has about 93
percent of their stores in the United States with about
7 percent international. So there’s still a lot of
room for growth for them internationally. And one thing that they’ve been
undertaking in the United States is selling off company owned
stores to franchisees. And what this does is it gives
them some immediate cash but it also passes off some of the risks and
some of the costs on the franchisees rather than the company itself. And that could be good for
expansion in the future especially because there’s so much open space
in the international market. Same store sales growth has largely been positive over the years with a few notable hiccups. But even the 2008 financial crisis,
didn’t keep it down for long. Sales at locations have been open for at least a year sank 5 percent in 2009 but by 2010 they posted positive same store sales growth. But new Mexican chains are popping
up across the country like Wahoo’s, which has around 50 locations,
Baja Fresh with approximately 150, Trejo’s Tacos with just under 10
and Chronic Tacos which has just over 50 in the U.S. But in the fourth quarter of 2018
alone Taco Bell opened up nearly as many restaurants as the entire Baja Fresh chain. Internationally, Taco Bell has nearly 500 stores across almost 30 countries. That pales by comparison to
some of its biggest competitors. But parent company Yum! Brands is looking to double that number by 2022. But Taco Bell has struggled with
international expansion in the past. They’ve tried and failed in Mexico because well Mexico already has its own good cheap Mexican food. They’ve also entered and pulled
out of Dubai and China. As of 2017, the company is moving back into China with a new menu geared toward local tastes. But here in the U.S., Taco Bell’s version of Mexican has
become a cornerstone of American fast-food. It’s the best performer
in Yum! Brands portfolio. Pizza Hut has struggled domestically as more customers choose delivery from Domino’s instead of sitting down at a Pizza Hut. KFC a favorite, China has seen
American consumers grow tired of its menu and instead either chicken
from rivals like Popeyes or Chic-Fil-A. Yum CEO Greg Creed recently bragged about Taco Bell’s sales figures on the company’s earnings call. Now I want to talk about where 2018 marked our seventh consecutive year of positive same store sales growth. Once again outpacing the industry a remarkable feat. 93 percent Taco Bell’s in the U.S. are franchised, meaning they’re owned and operated by franchisees. Taco Bell Corporation helps these franchisees in many ways including marketing and product development. Chipotle, by comparison, does not franchise any of its 2,500 locations which gives management more control over how the restaurants are run. That control makes it easier for
Chipotle to experiment like what it’s doing with drive-through dining for the first time. Chipotle’s version called “Chipot-lanes” is
app-based as opposed as traditional drive-through experiences where you have to talk into a microphone on a menu board. This seems like a direct shot at Taco Bell’s very successful drive-thru business. Chipotle his new boss knows that
approximately 70 percent of Taco Bell’s sales happen at the drive-thru. And some Taco Bell’s may start looking like Chipotles. The company has opened a new style
Taco Bell in urban areas called “In-Line” which features open kitchens unique art on the walls and a hipper design. A similar version of the In-Line concept called Taco Bell Cantinas serves alcohol. They’ve been popping up in cities
like Chicago New York and Newport Beach, California. So we are inside right now the Taco Bell Cantina which is our latest model of our expansion and growth plan. And over the past two years we really developed close to about 50 of these restaurants that are Cantina urban In-Line. So typically when you think of Taco
Bell’s you think of suburban and rural areas with drive-thru. These are very different. These
are in downtown walkable space. No drive-thrus. We want to
make sure that they feel like they’re part of the community that they’re and so people can come in and feel like they have a unique experience. Most fast-food chains have an innovation
lab where they come up with new menu items. But Taco Bell has a very “Willy Wonka” like quality to it. The company’s creations include wild
mash-ups with Doritos Locos Tacos and they’ve created new Mexican foods
that were invented north of the border like Quesalupas. And certainly when they have you know
sort of outside the box menu items like say a Waffle Taco or
the Nacho Fries you know that’s an attempt at grabbing the attention of
customers who are like hey that’s that’s a different That’s interesting I’ve never had that before let’s go try that. Taco Bell likes to stress the value they offer to consumers. They battle with other fast-food giants
and what QSR Magazine calls the “Value Wars” and price is
one area where Chipotle can’t compete with Taco Bell. It’s dollar cravings menu offers everything from burritos to cinnamon twists. At Chipotle even a side order
of tortilla chips is more than a dollar. But with Taco Bell prices so low
it could be a concern going forward as many states are increasing
the minimum wage in 2019. Taco Bell may need to offset the
labor cost increase by pushing bigger ticket items like the five dollar meal
boxes and with low prices and value are your bread and butter, you
don’t want to push those costs onto consumers. That’s why companies like Taco Bell
have been looking for efficiencies in operations and using new
technology to address wage increases. Another major and ongoing concern for
Taco Bell and its competitors food safety and quality. Chipotle is still reeling from an E. coli outbreak in 2015 which sent the stock tumbling. They hadn’t recovered until the company poached Taco Bell CEO Brian Niccol in 2018; since then the stock prices nearly doubled. They tried to start some national
advertising campaigns to get their brand recognition back out there. They went through a lot of
product giveaways and promotions and spent millions of dollars trying to regain
the customer loyalty that they had lost. Taco Bell dealt with similar problems
in 2006 which affected sales for almost a year. Sales at Taco Bell locations that have
been open for at least a year declined by 5 percent in 2007, especially in the Northeast where these problems started. Taco Bell didn’t release the same source sales in 2006, but when they did in 2007 they were down 5 percent. Then in 2011, an Alabama law firm
filed a class action lawsuit against Taco Bell alleging the beef on
their menu wasn’t actually beef. Same store sales again declined by
dropping two percent that year just as the company was recovering
from the financial crisis. But talk about cheeky response helps
explain how they managed to navigate PR nightmares. They took out a full page ad in
the newspapers to say “thank you for suing us.” The ad also explain what’s actually in their beef. According to the ad the meat is
80 percent beef and twelve percent seek a recipe which Taco Bell
claims keeps it from being boring. It’s that voice that Taco Bell
engages with its customers in unique ways. Taco Bell’s TV commercial taglines
have become popular catchphrases like “Run for the border” yo
quiero Taco Bell” and “Drop the chalupa.” You’re looking at Taco Bell with
7000 restaurants almost 11 billion in sales generating about 460
million dollars of the advertising budget that they
say can spend annually. That is three times the
size of what Chipotle spends. So there’s a lot of marketing
and advertising muscle Taco Bell to continue to drive home their message and
Taco Bell and able to be in every medium from TV to radio. Chipotle has to do a little
bit more picking and choosing. Customer engagement cross digital is
an important growth driver for Taco Bell accordingly Yum! Brands CEO. The company added a senior leadership
role who will focus on digital and technology strategy. Taco Bell has even offered mobile
ordering and payment on its app since 2014. They added a customer loyalty program to
the app in 2015 but the competition is catching on. Several Mexican chains also started app
based rewards programs like a Qdoba and Moe’s. In 2018, Chipotle also started testing a loyalty program which they expanded nationwide in March of 2019. Its digital sales grew almost 66 percent in the fourth quarter of 2018. Those sales account for 12.9 percent of its sales. Another growth driver for
Taco Bell is delivery. In 2018, Taco Bell made a 200 million dollar investment in the digital food ordering and delivery platform, GrubHub. According to the company, Taco Bell spent nearly a year integrating its systems to create seamless ordering and delivery experience. In February of 2019, Taco Bell rolled out nationwide delivery through the GrubHub partnership. But despite its popularity Taco Bell
is facing struggles in its C-Suite. Some of that is due to the
departure of the former CEO Brian Niccol. Now that is gone some wonder
if the company’s momentum can continue. Once Niccol defected, he relocated Chipotle’s Denver Colorado headquarters to Newport Beach, California. Right in Taco Bell’s backyard. Some say it made it easier for
Niccol to poach Taco Bell’s top talent; a process that looks already to be underway. Taco Bell executives Chris Brandt and
Tressie Lieberman have both left Taco Bell and joined Chipotle way since Nicole’s departure. But when you talk about some a
company like Chipotle, I think Brian Niccol will have to play certainly growing in the years ahead. They’re going to open a lot more restaurants they’re going to their sales will continue to climb. But I just I don’t ever think that Chipotle they will surpass Taco Bell as being this Mexican experience that Americans love because they’re just both going to occupy their own different corner of the industry and that’s going to work out for both of them. CNBC reached out to Taco Bell about
Nichols departure and the 2006 E. coli outbreak. The company
declined to comment. Even with Niccol gone, sales still look
good but the pressure is on talk about to stay consistent as KFC
and Pizza Hut struggle find a solid footing in the restaurant industry remains worried about the rising labor and commodity costs. Taco Bell’s trajectory seems to be up
but only time will tell if the Mexican-American chain is ready to
tackle the challenges ahead.

100 thoughts on “Why Americans Love Taco Bell”

  1. CNBC says:

    What's your favorite fast food brand?

  2. Alexander Bunny Bun says:

    Look-
    I may be Mexican and would never choose Taco bell over a real good deck of Al pastor tacos [in mexico, mind you].
    But having to imagine a college student with a horrendously low budget, this is a literal god send.
    Won’t lie either, they’re food is pretty good.

  3. Oscar Monroy says:

    It’s not something you can eat every day without destroying your stomach

  4. nicky duran says:

    Im sorry but taco casa is way better then taco bell ! Tx

  5. Cameron Rice says:

    Wish they would bring back the lava menu items… they just released the ‘reaper’ products. Not sure if it’s the same or similar, but the lava taco was my everything 🥰

  6. Cameron Rice says:

    Ps
    Screw chipotle for moving their headquarters out of Colorado.

  7. Videogaming4Life 2149 says:

    Now I want Taco Bell

  8. jaimit vala says:

    We want tacobel in Australia too…

  9. 1CBRDUDE says:

    Healthy Your joking There food is processed toxic crap . You eat it your deserve to have poor health .

  10. DavEyOne SlimObi says:

    They love it because its tasty, but even more importantly, its has addictive ingredients and additives in all its menu items.

  11. Artikz says:

    Taco Bell does not even consider itself a Mexican restaurant, so why the hell do Americans consider it Mexican?

  12. Murali Phani says:

    masala papad = taco bell

  13. Nigga says:

    No offense. Why Americans love having explosive diarrhea?

  14. Maiden the 80's L.A. says:

    1:08 For tacos or burritos, I would rather spend my money at a mom & pop shop than some white bread corporate-owned business' fake take on Mexican food.

  15. Oscar Navarro says:

    Taco bell is not real Mexican food

  16. Donato says:

    Before I watch. I’ll tell you why. It’s never not fresh. Nothing sits around that can’t like rice and ground beef and that’s fine. Everything else is just a condiment

  17. Eduardo Velasquez Torres says:

    Taco Bell is not Mexican food

  18. Dennis Flo says:

    As long Mexican exist…Taco Bell exist

  19. timmy turner says:

    I absolutely love Taco Bell. I especially like their soft tacos and spicy packets.

  20. Jamie Wright says:

    Slop

  21. loiun be says:

    Soo It looks like they stole mexican food from mexico 4 profit ..? cultural appropiation… maybe?

  22. AfricanGamer says:

    I work at taco bell and only if the world knew how they made their food y'all wouldn't eat their anymore

  23. Sofía Jiménez says:

    Taco Bell basically just sells Dorito burgers, it's not genuinely Mexican at all. In my family, we've vowed to NEVER eat there and go somewhere else or just prepare Mexican food ourselves.
    5:56
    See???
    Why would Mexicans buy totally ruined versions of THEIR OWN FOOD???

  24. Henny says:

    Why Americans love the food but not the people *

  25. Chair Riahc says:

    But tacos are not American food

  26. Tommy Chang says:

    I want Taco Bell now.

  27. Rj Simas says:

    Because we're fat.

  28. Rudolph Ramirez says:

    I'm sorry but taco bell is ridiculously expensive and its half ass tacos like nasty in sorry at least the taco bell in my town is like that

  29. YK_Beats says:

    Every Mexican I k ow hates TB

  30. YeshuaAgapao says:

    Forgot Del Taco and Filiburtos in competitor list.

  31. Buddhist (Anhänger des Dalai Lama) says:

    Los Pollos Hermanos is No 1 in New Mexico (Breaking Bad) !

  32. Darkscar says:

    Do yourself a favor and up the playback speed to 1.25

  33. IdlovemesomeGyro! says:

    "Mexican Resteraunt"
    Yeeeeeeeaaaaaaah, I'm gonna go ahead and disagree with you on that.

  34. paul peters says:

    I love taco bell but they have a horrible breakfast menu

  35. katman77018 says:

    this food is total garbage.

  36. CJ Johnson says:

    lets all take a second to notice they mentioned Baja Fresh as a competitor. I don't think Baja Fresh is challenging anyone at this point with their like, 5 remaining locations

  37. Elias Barbosa says:

    I love Taco Bell!

  38. Squeezy Cheesy says:

    I don’t like Taco Bell at all

  39. Squeezy Cheesy says:

    Quick answer because all of the ones who do like it are skaters

  40. fil aslod says:

    America don't love taco bell. duhhhhhhhhh. taco bell is simply strategically placed at great locations where UNAWARES customers can dine on crap and believe this is how things are supposed to be. so they don't complain cause THEY DONT KNOW ANY BETTER.

  41. Bo Rood says:

    It's cheap and supefast

  42. SWLinPHX says:

    I don't think they're so cheap. I got three things for like $14.

  43. Hirnfaser says:

    Why aren't there any (public) taco bells in germany 🙁

  44. Bhumika Thakkar says:

    Taco Bell in India is the shittiest thing you will ever eat with just big chunks of tomato and cucumber in it and absolutely no taste!

  45. Wild Earth says:

    We don’t have Taco Bell in France 😤

  46. sti Yure says:

    Wild first taco bell was in downey

  47. venito camelo says:

    they could not make it in mexico when they tried i wonder why lol

  48. David Urdahl says:

    Taco Bell cantina, when you want to throw up and have the runs at the same time.

  49. Anabolic Camel says:

    Cuz of gta san andress

  50. Luke Smith says:

    Oh gawd no

  51. PhatBoiSlimz says:

    Being that Taco Bell was my first real job in High School PLEASE DONT EAT THERE, the meat is equivalent to dog food and not even grilled, its heated in plastic bags in a tank of boiling water similiar to how a deep frier cooks fries in oil and the beans are not even beans, its powder and hot water mixed together into this sludge that gets left on the line all day. Go get some real mexican food at a place that doesnt have a drive through like Chronic Taco

  52. aly says:

    Waiting for my parents to bring home tacos right now lol

  53. 432423429482 says:

    You can see the rot setting in. They set up hipster-styled restaurants with higher prices that drive people away and wonder what went wrong.

  54. koila maoh says:

    8:03 hipster taco bells and gentrification spotted and just the right locations too lol…

  55. Evans Cheuka says:

    Please Bring Taco Bell to the United Kingdom ,,,,

  56. Kebb says:

    Worth the diarrhea almost everytime.

  57. MrCool says:

    Taco Bell Cantina = Taco Bell for Hipsters

  58. juan david says:

    Because Tyler like it

  59. Dan says:

    Taco bell has the best 1.00 menu. I eat there alot.

  60. ayeitsisabelle says:

    Duh, Taco Bell is better. Chipotle all tastes the same across the board.

  61. Kyra Cruz says:

    Ewww… Taco bell is disgusting. #fakemeat

  62. Abigail Skelton says:

    It's so interesting how a lot of people, like the narrator of this video put the emphasis on the BELL, like tacoBELL while I grew up putting the emphasis on the taco, like TACObell. Which do you put the emphasis on?

  63. Tre Napier says:

    Anyone else get the the runs every time they eat Taco Bell?…

  64. Benjamin Ben-Shimon says:

    I would definitely eat at a Taco Bell before I would go to Burger King or McDonald's!

  65. Matty Iannielli says:

    CNBC is making me hungry!

  66. mr Tree says:

    It's funny how they didn't mention del taco

  67. gaby hernandez says:

    You know what made me crack up "Taco Bell is a Mexican restaurant" 🤣🤣🤣🤣

  68. Neko says:

    demolition man much?

  69. DPIII1 says:

    Toca Bell just opened a hotel in Palm Springs, they are winning lol 😂🤗🌮!!!

  70. im2sxc4yall says:

    I just get a mexican pizza and two soft tacos and a drink.

  71. Maddynf Lil Tay says:

    1 cheap 2 fast 3 tastes pretty good

  72. Nope Stuff says:

    It’s healthy!?!

  73. LauraNY says:

    Word restaurant used very loosely lol

  74. Emwo says:

    as a latina that always brings my cousins to taco bell whenever theyre in the US, they all usually love it! Cheap street tacos are a much better deal however but I wish taco bells would exist there, my cousins always have to wait until they visit.

  75. somebody person says:

    but taco bell is not mexican its americanized mexican food

  76. Joshua Carson says:

    Just like McDonald's and Subway is taking over.

  77. Joshua Carson says:

    @CNBC

  78. DJMinor5000 says:

    I prefer Taco Bell over Chipotle. Chipotle has had too many health issues and their food is too salty. Even though Taco Bell is fake Mexican food, I prefer it. They have also been renovating existing stores or completely demolishing and rebuilding locations which is great. Baja Fresh is on its way out, so they will not be much competition in the future.

  79. w41duvernay says:

    True. It caused me to quit Mcdonald's in the 90's for it's healthy food LONG before everyone was concerned with healthy food. Great food choices as well.

  80. PRYWATNY says:

    North americans are the most Fatass on the earth … here is why .

  81. Rachel_Rebel_Makeup says:

    Taco Bell and Chipotle are gross.

  82. Johnny Ho says:

    THEY NEED TO BRING BACK THE VOLCANO TACO AND BURRITO!!!!!

  83. Ruben R. says:

    Yo those burritos on the dollar menu are HUGE!!! 4 of those and I'm good!

  84. Cory_the_Celestial says:

    Demolition Man told us years ago.

  85. Sofia says:

    hopefully taco bell will come to Sweden in the near future and take out "taco bar" that sucks.

  86. Jose Torres says:

    Sounds like a commercial for Taco Bell.

  87. LaughingMan17 says:

    Because it's fast and tastes awesome when you're drunk and/or high. Saved you 15 minutes.

  88. rdm8522 says:

    Taco Bell always come thru in the clutch. My favorite is the #6 two Chalupas combo Baja style

  89. vivichu37 says:

    Taco.Bell needs to come to Asia!!!! Esp in Taiwan!

  90. NITSUA SAN says:

    Jack in the box has better tacos

  91. Caban Condos Mexico says:

    Nothing like real tacos in Mexico 🇲🇽

  92. Manh Hakchareun says:

    Aww man now I’m craving for Taco Bell

  93. Derrick Clark says:

    Watching this while eating Taco Bell

  94. Rachel Novak says:

    I mean…I’m vegan and the variety with which you can customize your meals to fit your lifestyle is great! Especially since we don’t currently have that much money.

  95. TheNotoriousVIC ._. says:

    I’m a Canadian and Taco Bell is my fav fast food resteraunt

  96. Teen So Sad says:

    What if they made horchata type of dessert?

  97. Chief Beef says:

    Taco Bell the goat Chipotle got nothing on them

  98. Adrian Octavio says:

    "Mexican Food"

  99. Daddyio oo says:

    As a Mexican I do NOT approve Taco Bell. Lmao it was made by an America wtf? 😂💀

  100. Johnny5 Tech says:

    The cornerstone of TacoBell is their hot sauce. that stuff is really good.

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