1. TACO BELL & CRISIS
MANAGEMENT
By: Courtney, Jaime, Stephanie, Kaitlyn, Lauryn
and Dave

2. Discussion
 Dave- Brief history and timeline
 Kaitlyn- E. Coli outbreak
 Stephanie-Crisis Management & E. Coli
 Lauryn-Rats in Greenwich Village
 Jaime- How TB/YUM Brands dealt with the rat
crisis

3. Taco Tia to Taco Bell:
An empire in the making
 1954-55: Built three Taco Tia
 1956: Sold to partner and started El Tacos
 1962: First Taco Bell
 1964: First franchise sold
 1969: Publicly traded
 1975: Bell resigned as CEO
 1977: First Taco Bell overseas
 1978: Bell sold to PepsiCo
 1997:Ownership transfer (Tricon Global)

4. Taco Bell 2009
 Serves two billion annually
 5800 restaurants
 Employs 178,000
 1.8 billion in revenue in 2005.
 Current president/CEO

5. The Outbreak
 What is E. Coli
 Effects of E. Coli
 Affects 73,000 Americans annually, kills 61
 Taco Bell -largest outbreak in the North East
in years

6. The Outbreak
 Taco Bells are closed in NJ, NY, PA, DE
December 2006: McClane Food Services
 Illness from outbreak varied
(hemolytic uremic syndrome)
 December 2006- Centers for Disease Control
 New “re-sanitized” Taco Bell

7. E.Coli PR Disaster
 Delayed response to crisis.
 YUM! Brands CEO cancelled appearance on MSNBC
December 5th to address issue.
 Press release dated 5 days after crisis occurred
 Responded when crisis was “over”
 Message from Greg Creed
 www.tacobell.com
 Our company > latest news > 12/14/2006

8. Analyzing Greg Creed
 Lack of facial expression
 Looks rehearsed, but not genuine
 Foreigner, makes him unreliable to audience
 Distance between audience and company
 Does he eat Taco Bell products?

9. Strengths
 Changed produce suppliers
 Shut down all infected locations for 24 hours.
 Stores were sanitized and inspected by local
health departments.
Customer support line: 1-800-TACO BELL

10. The Take Over
 Rats invade Greenwich Village
 February 2007- citizen journalism
 Employees confirm rat infestation
 http://www.youtube.com/watch?v=su0U37w2tws

11. The Takeover Contd.
 Health Department – closes Taco Bell
indefinitely
 QRS magazine reports on the “truth”
 After sanitizing the store owner makes
statement.
“We want to assure our customers that nothing is more
important to us than food safety and their health” (Minnick)

12. How To Make a Comeback
 The importance of Health Codes in Food Co.
 Social Media spreads news quickly ( blogs/google
articles)
 1000 blogs/ 600 posted stories
 YUM! Brands did not respond quickly enough

13. Time to Act!
 Food Franchises must respond better to crisis’
 Press Release statement – “There is no immediate
threat”
 Consumers reactions – “actions speak louder then
words”
 Taco Bell’s Reputation- saved or still hurt?

14. Quotes
 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.”

15. Conclusion
 Taco Bell – Crisis management grade
 Fast Food Franchises- Must Attend to Crisis’
Immediately!
 Bad Reputations die hard
 Class Discussion and Questions