Hershberg, Peter. “Taco Bell, Connoisseurs of Damage Control.” Reprise Media.
Final Pp Taco Bell 3
TACO BELL & CRISIS
By: Courtney, Jaime, Stephanie, Kaitlyn, Lauryn
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
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)
Taco Bell 2009
Serves two billion annually
1.8 billion in revenue in 2005.
What is E. Coli
Effects of E. Coli
Affects 73,000 Americans annually, kills 61
Taco Bell -largest outbreak in the North East
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
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
Our company > latest news > 12/14/2006
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?
Changed produce suppliers
Shut down all infected locations for 24 hours.
Stores were sanitized and inspected by local
Customer support line: 1-800-TACO BELL
The Take Over
Rats invade Greenwich Village
February 2007- citizen journalism
Employees confirm rat infestation
The Takeover Contd.
Health Department – closes Taco Bell
QRS magazine reports on the “truth”
After sanitizing the store owner makes
“We want to assure our customers that nothing is more
important to us than food safety and their health” (Minnick)
How To Make a Comeback
The importance of Health Codes in Food Co.
Social Media spreads news quickly ( blogs/google
1000 blogs/ 600 posted stories
YUM! Brands did not respond quickly enough
Time to Act!
Food Franchises must respond better to crisis’
Press Release statement – “There is no immediate
Consumers reactions – “actions speak louder then
Taco Bell’s Reputation- saved or still hurt?
There’s nothing more viral on the negative
side than rate”, said Pete Blackshaw, chief
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
Taco Bell – Crisis management grade
Fast Food Franchises- Must Attend to Crisis’
Bad Reputations die hard
Class Discussion and Questions