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Unformatted text preview: lized foods — has lately
encountered some financial difficulties. In 1989 Taco Bell introduced a “K minus” program. The K stood for “kitchens”, which the chain strove to eliminate from its restaurants. Precooking the beef and the beans at central locations allowed Taco Bell to offer low prices, with
most of the core menu items selling for less than a dollar. The strategy was a success during the 1990s, but eventually backfired, as Taco Bell
gained a reputation for cheap, bland food. Sales at its company-owned restaurants fell by 9 percent in the fourth quarter of 2000, causing
financial problems for as many as a thousand Taco Bell franchisees. Tricon Global Restaurants, the chain’s parent company, had to set aside
millions of dollars to help struggling franchisees, and PepsiCo Inc. sent them early “soda-rebate” checks worth additional millions to keep
them in the business of selling Pepsi. A major recall of taco shells — sold under the Taco Bell name only at supermarkets and containing
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08