Taco Bell Struggles with Traffic Recovery Post-Outbreak
Months after a cyclospora outbreak linked to iceberg lettuce, Taco Bell continues to face significant challenges in customer traffic. The outbreak, which affected nearly 20,000 individuals, has officially ended, but the fast-food chain’s recovery has not been as straightforward.
Impact of the Outbreak
The outbreak, attributed to lettuce supplied by Taylor Farms, prompted Taco Bell to remove affected ingredients, including lettuce and cilantro-onion mix, from its menu. Despite these efforts, customer visits plummeted by 18.1% by mid-July, with a further decline to 30.9% just days later, compared to the chain’s average traffic earlier in the year, as reported by Restaurant Business.
Promotional Efforts and Ongoing Challenges
In response to the downturn, Taco Bell implemented aggressive promotional strategies, including deep discounts on popular items. From July 6 to September 11, when the CDC declared the outbreak over, visits per location were still down 12.2% year-over-year, according to data from Placer.ai.
R.J. Hottovy, head of analytical research at Placer.ai, noted that chains affected by the outbreak, including Taco Bell, experienced a decline in visits during this period. In contrast, competitors like Chipotle and Sweetgreen outperformed the market.
Outlook from Yum! Brands
Despite the ongoing challenges, executives at Yum! Brands, Taco Bell’s parent company, remain optimistic. CFO Ranjith Roy indicated that sales trends have shown improvement, stating that the chain is “halfway back” to pre-outbreak levels. He emphasized that while recovery is on track, there is still work to be done before celebrating a full return to form.
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