Yum! Brands Yum! Brands Inc. operates the Taco Bell, Pizza Hut, KFC, Long John Silvers, and A&W chains. The company is the largest quick-service restaurant concern in the world in terms of units with approximately 34,000 locations in over 100 countries across the globe. Taco Bell, Pizza Hut, and KFC were part of PepsiCo Inc.s restaurant group until 1997 Tricon changed its name to Yum! in 2002, the same year that Long John Silvers and A&W were added to its holdings.
Taco Bell History 1970’s 1990’s 2010’s 1978 1991 2010 Glen sold Taco Bell Taco Bell launches new The new Tacobell.com restaurants to PepsiCo express business to serve site launches! From Inc. , and became a hungry people on-the-go. food to jobs to store location , everything PepsiCo shareholder. you want to know about Taco Bell is now just a click way! 1960 1970 1980 1990 2000 2010 1960’s 1980’s 2000’s 1962 1984 2001 Glen Bell opens his first Taco Bell replaces its Taco Bell unveils a new Taco Bell restaurant in original mission-style advertising slogan urging Downey , CA , serving restaurants. consumers to “Think what his customers called 1988 Outside The Bun.” “tay Kohs” Drive-thru windows are 1967 also installed Taco Bell’s 100th restaurant opens at 400 south Brookhurst in Anaheim.
Taco Bell’s Situation in 1983 Strong growth in the 1960s and 1970s came to a halt in the early 1980s as the fast food industry began showing signs of maturity. Unable to forecast To deal with the potential threat customer demand of a maturing business. Unclear company vision. Unable taste of food Self centric (Focus on self department, but not focus on organization)Q1: Describe challenges facing Taco Bell in 1983
Taco Bell’s Action taken at Situation in 1983 Remodeling Double the Midwest assembly restaurant line New Menu Southeast New Northeast OutfittingQ2: Critically analyze the actions taken by Taco Bell between 1983 and 1994
Taco Bell’s Situation in 1994 1998 - 1991- 1991 1994 Recession in fast- Value pricing food industry, strategy becomes single – digit dominant growth
Summary of Changes at Taco Bell 1988-1991 1991-1994 Strategic initiatives Information-enabled business Create an empowered learning transformation organization Customer value orientation Extend brand through acquisitions and retail Process FACT studies K-Minus and SOS Dramatically extend POAs Increased kitchen capacity enhances Team-base processes replace non-eat-in sales assembly line Operational innovations People Recruit more skilled RGMs Crew member trained to manage New training program for leadership stores in teams skill Experiment with shared incentive New compensation and nonmonetary systems rewards Information and communication TACO system provides communication TACO II extends access to and information infrastructure information and communication infrastructure to TMUs Intellectual network Voice mail and computer conferencing complement e-mailQ2: Critically analyze the actions taken by Taco Bell between 1983 and 1994
Advice given to John Martin in 1994 Behavior Price Clean Location PromotionQ6: What advice would you have given John Martin in 1994?
Strategic initiatives Phase 1 Phase 2 Phase 3 1983-1988 1988-1991 1991-1994 • Incremental process • Information-enabled • Create an empowered redesign business transformation learning org. • Customer value • Continuous orientation improvement • Extend brand through acquisitions & retailQ4: Can Taco Bell’s major competitors copy the Taco Bell strategy? (why or why not)
Business Process Reengineering “the act of fundamentally changing core processes.”Reference: The Journal of public inquiry, A publication of the inspectors general of the United States, Hatching new ideas!, Spring 1996
Safety Nets Process and Infrastructure Empower Employee Improvement Marketing survey for mgr’s Customer Complaint through Mystery shopping for quality performance & market toll free tel. number & performance improvement checking Measurement of customer satisfactionQ3: Given the speed and magnitude of change, why didn’t Taco Bell go “out of control”?
Service-Profit ChainQ4: Can Taco Bell’s major competitors copy the Taco Bell strategy? (why or why not)Reference: Harvard Business Review, Putting the Service-Profit Chain to Work by James L.Heskett, Thomas O. Jones, Gary W. Loveman, W. Earl Sasser, Jr., and Leonard A. Schlesinger
Taco Bell’s current position Goal : Growth to $25 billion in sale and Expand 200,000 POAs by the year 2000 • Multi Brand • Convenient food business •Taco Bell restaurant •Taco Bell New Concepts •Taco Bell International •Taco Bell supermarket retailQ5: Is Taco Bell positioned to achieve its goals? Please explain.
Key Learning K Minus People POS System • Safety Nets Maintain standard / Ensure adherence to company policies & value system