17510: Yum! Brands Says Yuck! To Pizza Hut.

 

Advertising Age reported Yum! Brands is slicing Pizza Hut from the corporate portfolio.

 

The sale scenario posed an opportunity for WPP, which could’ve acquired the restaurant chain and created a new unit—WPPizza—delivering pies to clients and White advertising agencies in the network.

 

Such an enterprise also could’ve offered employment possibilities for the thousands laid off by the single White operating company.

Pizza Hut is being sold for $2.7 billion

 

Yum Brands Inc. is selling its struggling Pizza Hut division for $2.7 billion, allowing the restaurant operator to focus on its better-performing KFC and Taco Bell chains.

 

Private equity firm LongRange Capital will acquire Pizza Hut excluding China for $1.5 billion, Yum stated Tuesday. Yum China Holdings Inc. will buy the rest of the business for $1.2 billion. The transactions are expected to close in the third quarter.

 

Yum’s shares rose as much as 3.6%. The stock had gained 2.2% this year through Monday’s close, trailing the S&P 500’s 10% advance.

 

Investors had been expecting Yum to offload Pizza Hut, which it has owned since the restaurant company spun off from PepsiCo Inc. in 1997. The sale should help Yum sharpen its focus, Bloomberg Intelligence’s Michael Halen said.

 

“This enables them to divert their resources, their people, their energy and their capital toward one very high-growth chain and one very solid-growth chain,” he said.

 

Bloomberg reported in May that LongRange had entered exclusive talks with Yum to buy Pizza Hut. The company said last year that it was conducting a strategic review after years of trying to revive stagnant sales at the chain known for its pan pizzas with thick, buttery crust.

 

Domino’s pressure

 

Domino’s has trumped Pizza Hut in areas including menu innovation, marketing, ordering technology and delivery infrastructure, said Neil Saunders, managing director at GlobalData. Pizza Hut also is a less popular option for casual diners who are eating in, as they look for larger menus and more contemporary environments, he said.

 

Pizza Hut’s U.S. business has underperformed peers in recent years, according to data from restaurant research firm Technomic Inc. The category got a lift as Americans ordered in during the pandemic, but sales have petered out since. Chains have launched a bevy of deals to boost traffic. Pizza Hut has struggled to compete.

 

“This is as promotional an environment as I’ve seen,” Halen said. At Pizza Hut, “the quality of the product wasn’t good, and the real estate here in the U.S. was a problem. You have these big stores and nobody is coming to your stores to sit down and eat.”

 

Pizza Hut’s share of Yum’s revenue has declined every year since 2019, shrinking to about 12% in 2025 from more than 18% six years earlier, according to data compiled by Bloomberg. During that period, Pizza Hut’s revenue has hovered around $1 billion, while Yum’s revenue grew by about 47% to $8.2 billion last year.

 

The deal will leave Yum with KFC, its largest brand at $3.5 billion in annual sales, Taco Bell ($3 billion) and Habit Burger & Grill ($570 million).

 

“Pizza Hut has dragged on the otherwise solid results from the group,” Saunders said in his note. “In essence, the good numbers from KFC and Taco Bell have been clouded by the ongoing sales slides and profit slips at Pizza Hut.”

 

For Yum China, acquiring Pizza Hut in China will give it control of what it describes as the largest casual dining brand in the country, with segment revenue of $2.3 billion last year. It plans to boost locations to more than 6,000 by 2028 from roughly 4,400 at the end of March.

 

LongRange, based in Stamford, Connecticut, owns companies including 24 Hour Fitness.

17224: Fast Food, Fast Moves, Not-So-Fast Progress.

 

Advertising Age reported Yum! Brands shifted Taco Bell and Pizza Hut assignments across its roster of White advertising agencies. The fast-food corporation regularly moves account work, seeking sales increases that no shop seems capable of sustaining.

 

Perhaps Americanized tacos and pizza simply aren’t appealing.

 

“We are partnering with VML to consolidate our TV creative alongside social, CRM, and loyalty as a strategic imperative essential to our brand growth agenda,” stated Pizza Hut’s U.S. Chief Marketing Officer. “We are laser-focused on selling pizza and wings while feeding good times and connecting people through the joy of pizza. To truly own that space, it’s critical that, in partnership with VML, we deliver a cohesive, integrated, and consistent experience across every consumer touchpoint.”

 

The statement deserves a single-word response: Yuck!

 

Big creative agency changes at Yum Brands—Deutsch gets a smaller role with Taco Bell and VML wins Pizza Hut

 

By Brian Bonilla, Erika Wheless, and Ewan Larkin

 

Yum Brands is making key agency changes for two of its biggest brands—Taco Bell and Pizza Hut—diminishing Deutsch’s creative role on Taco Bell and removing the agency from the pizza chain’s roster.

 

Pizza Hut confirmed to Ad Age that it has consolidated all of its U.S. creative duties with VML. Interpublic Group of Cos.’ Deutsch had been named the pizza chain’s lead creative agency last year.

 

“We are partnering with VML to consolidate our TV creative alongside social, CRM, and loyalty as a strategic imperative essential to our brand growth agenda,” Melissa Friebe, Pizza Hut’s U.S. chief marketing officer, wrote in a statement. “We are laser-focused on selling pizza and wings while feeding good times and connecting people through the joy of pizza. To truly own that space, it’s critical that, in partnership with VML, we deliver a cohesive, integrated, and consistent experience across every consumer touchpoint.”

 

WPP’s VML was initially added to the Pizza Hut roster last year to handle customer promotions, loyalty and CRM efforts.

 

Deutsch was hired by Pizza Hut in November 2024 after the agency successfully rolled out its “Sorry, Chicago” campaign for the chain’s Chicago tavern-style pizza.

 

VML referred the comments to the client. Deutsch didn’t respond to multiple requests for comment.

 

Changes at Taco Bell

 

Deutsch’s role with Taco Bell is also shrinking, according to three sources close to the situation.

 

Taco Bell did not confirm or deny roster changes, commenting: “Across the globe, Taco Bell taps a wide network of agencies that includes Deutsch, Biite, Edelman, Wasserman, Spark, and The Syndicate to bring its creative vision to life. At times, the brand also draws on specialized partners with specific expertise for special assignments or projects.”

 

In an earlier interview, Taylor Montgomery, Taco Bell’s global chief brand officer and former U.S. CMO, told Ad Age that the brand was looking to “make sure that some of the key brand narrative—our brand equity and positioning and our brand design—is all coming from a very consistent place. And that’s a combination of our partners at Deutsch and then our internal creative agency.”

 

Deutsch’s remit is currently unclear and the agency did not return multiple requests for comment.

 

Food culture agency Biite has become a “main agency” within the Taco Bell roster, Guto Araki, Biite’s founder told Ad Age. Biite has been taking on more of Taco Bell’s business over the last two years that had earlier been handled by Deutsch. Just last week, Biite launched a campaign introducing the chain’s new crispy chicken menu.

 

The agency was behind the 2024 “Live Más Live,” Taco Bell’s first tech-style keynote, and produced this year’s Taco Bell Super Bowl ad that featured its fans in drive-thrus.

 

Notably, Araki worked with Deutsch (then known as Deutsch LA) in multiple lead creative roles from 2015 to 2022. He also worked on Taco Bell’s first global campaign in 2021.

 

The moves mark the latest agency changes made by Yum Brands. Its largest chain, KFC, shifted to an agency roster approach in 2024, adding Highdive, which has been behind that chain’s latest work, including its chicken tender battle and a recent spot featuring an angry Colonel Sanders. IPG agency MullenLowe had previously handled KFC’s U.S. creative.

 

The shifts come as Taco Bell and Pizza Hut look to grow internationally and draw back consumers, respectively.

 

Taco Bell has been a bright spot in a fast-food environment where consumers are cutting back on dining out. The chain reported its U.S. same-store sales were up 4% in the second quarter. Taco Bell is currently rounding out its Decades Menu, which has brought back favorites from previous years, with menus today featuring items from the early 2000s.

 

In his interview, Montgomery said that in 2026 the chain is planning to highlight more occasions where it can show up for consumers, as well as continuing to focus on crispy chicken and its drink concept, Live Más Café. Taco Bell is also looking to nearly double its number of international locations to 3,000 by 2030.

 

Sibling brand Pizza Hut has been struggling in the pizza category, with second-quarter same-store sales down 5% in the U.S., pacing well behind rivals Domino’s (up 3.4%) and Papa Johns (up 1% in North America). Friebe—who came to Pizza Hut after many years at Taco Bell—has been with the pizza brand for a little over a year.

 

Pizza Hut recently rolled out a new all-red logo featuring oozing Zs, a look that divided designers; current ads are for the brand’s personal Flatzz pizzas and its Big Dinner Box to feed a crowd.

12434: No Más Salt, Taco Bell!

USA TODAY reported on the quiet campaign from Taco Bell to reduce the salt in menu items. It certainly is a quiet campaign when viewed alongside loud promotions for food-like stuff featuring Doritos and Fritos.

“We have done the right thing. We have done the moral thing,” proclaimed Taco Bell CEO Greg Creed. “What we haven’t done is toot our horn. No one out there suspects we have done it because we haven’t changed the taste.” Hmmm. There are lots of contradictions in Creed’s statement. The CEO said Taco Bell didn’t “toot our horn,” which implies being humble; yet he also said, “No one out there suspects…” which implies being deceitful. Is it possible to do “the moral thing” without being honest? Plus, why act with such grandiosity when “the right thing” is essentially conforming to recommended standards? Creed admits it’s tough for fast feeders to sell healthy food and make a profit. On the flipside, why should places like Taco Bell be allowed to knowingly sell unhealthy food without facing public and even legal scrutiny?

The Fourth Meal fans will undoubtedly argue that people have the inalienable right to consume whatever they wish—oblivious to the scientific evidence proving salt is addictive. Fast-food restaurants that offer healthy menu items in addition to the unhealthy fare are not much different than Big Tobacco financing anti-smoking campaigns and Big Booze financing drunk-driving campaigns. Indeed, at some point, Taco Bell and its peers should be forced to develop healthy eating campaigns—and the messages better not be quiet.

Taco Bell reduces salt in quiet campaign

By Jere Downs, The (Louisville, Ky.) Courier-Journal

LOUISVILLE, Ky. — Taco Bell’s menu is packing less salt, 15 percent less on average since 2009, the result of a stealthy campaign by Yum! Brands CEO Greg Creed.

“We have done the right thing. We have done the moral thing,” Creed said when asked how Yum! is responding to consumer demand for healthier fare. “What we haven’t done is toot our horn. No one out there suspects we have done it because we haven’t changed the taste.”

Taco Bell’s sodium reduction was part of a Yum effort to make 15 percent of its menu items at the chain — as well as at Pizza Hut and KFC — conform to recommended mealtime limits for it, sugar and fats by the end of the year.

And by 2020, Yum wants 20 percent of its menu items to land at or below the limits, chief nutrition officer Jonathan Blum said. The idea is that if consumers eat three meals per day, one of those three meals at a KFC, Taco Bell or Pizza Hut can satisfy one third of the recommended daily allowances.

The initiative “is a bold goal across the globe,” Blum said, adding that the objective is to reduce salt without losing flavor or market share.

“We don’t want it to be perceptible,” he said. “We just want to improve ingredients.”

The increasing public debate about the health consequences of fast food appears to be driving sodium down at other chains. At McDonald’s, for instance, the Big Mac and Quarter Pounder with Cheese sandwiches have dropped their sodium levels between 7 percent and 8 percent, respectively, since 2011. Each McDonald’s burger contains five salt packets each, at 960 and 1,100 milligrams respectively.

But critics say that in some instances, Taco Bell’s efforts fall short. Even though the Steak Burrito Supreme now stands at 1,090 milligrams of sodium instead of 1,340, that much salt in a single blast is still not good for you, said Michael Jacobson, co-founder and executive director of the Washington, D.C.-based nonprofit Center for Science in the Public Interest.

The Steak Burrito Supreme “has a long way to go to get to a healthy level,” Jacobson said.

The human body requires just 200 milligrams of sodium daily to balance electrolytes and other bodily functions, according to the American Heart Association. But Americans take in 3,463 milligrams of sodium daily, or about 1½ teaspoons of salt, according to the U.S. Department of Agriculture’s Dietary Guidelines for Americans.

Yum’s nutrition goals for 2015 and 2020 are “not terribly ambitious,” Jacobson added. “Couldn’t a restaurant have at least half of its products be reasonably healthy?

“At least nutrition is on their radar screen,” he said, adding Taco Bell’s progress is an example of “creeping awareness into the sector.”

Creed, who became Yum’s CEO following a long stint as Taco Bell’s chief, said consumers may shun foods if they are advertised as low salt or otherwise good for you.

“People don’t want the taste to change,” Creed said in an interview this month. “If I came out and said ‘new low sodium Taco Bell,’ some people will think it will taste like you know what, and they are not going to come.”

And for most diners at a Louisville-area Taco Bell on Tuesday, salt wasn’t a concern.

“I like the Gordita Crunch. The sauce is really good,” said Anthony Gardner, 26, of Radcliffe. “It tastes good, so I eat it.”

“I like the salt,” said his brother, Michael Gardner, 32, adding that the pair eat lunch at Taco Bell three or four times a month. “I will probably care about salt a little later in life.”

Exactly how and where the salt has come off Taco Bell’s menu remains a trade secret. During his tenure at the helm of Taco Bell, Creed said he scrutinized all ingredient categories.

“We pulled sodium out of everything, tortillas, beef, marinade for chicken, fire sauce,” he said. “There is not an ingredient that we haven’t pulled sodium out of.”

The numbers show Taco Bell cut salt by one third in 33 menu items between 2009 to 2015. That includes the Grilled Steak Soft Taco, which has 490 milligrams of sodium, a 31 percent decline from its 710 milligrams in 2009, and the Cheesy Bean & Rice Burrito, which has 490 milligrams of sodium, a 32 percent decrease from 1,370 six years ago.

Foods dramatically reduced in sodium at Taco Bell also seem to have a soft tortilla. They include the Fresco Grilled Steak Soft Taco (440 milligrams of sodium for a 27 percent drop from 600), and the Chicken Burrito, (960 milligrams of sodium, a 24 percent change from 1,260.)

And while overall progress takes place at Taco Bell, some new menu additions go the other way. The Doritos Cheesy Gordita Crunch line, for example, contains nearly 900 milligrams of sodium in each variation.

Blum, Yum’s nutrition chief, said high-sodium items like the Doritos Gorditas at Taco Bell, or other salty fare at KFC or Pizza Hut “are absolutely delicious and products I love to eat.” Consumers can be applauded, he added, “for the choices that they make, as long as they have the information and education about what to consume.”

Nancy Kuppersmith, a registered dietician with University of Louisville Physicians, took a more jaded view. Patients that she treats for obesity, diabetes and heart disease commonly eat fast food for one meal per day, she said. Extra sodium in fast food menus, she said, just makes them crave more than is good for them.

“It makes the food taste better if you put salt on it. It masks other flavors that might not be so good,” Kuppersmith said. “Will sodium stimulate me to eat more so I might buy more? Absolutely.”

Creed said competing against other fast food chains who may not be lowering sodium, means retaining sodium levels in some favorites while also offering a variety for consumers seeking healthier options, Creed said.

That’s why Taco Bell’s more nutrient-dense, and lower-sodium Fresco and Cantina menu options “are not the best-sellers,” Creed said. “But they need to be available.”

“Our customers are demanding it,” he said. “You don’t have to be Einstein to see this whole trend of transparency and authentic and genuine going forward.”

11224: Exclusive Pizza Party.

Advertising Age reported Pizza Hut has launched a review for its creative business. The Martin Agency—part of IPG—will defend as the incumbent. Pizza Hut declined to reveal the other contenders and whether a search consultant will be used. Gee, it’s hard to guess which IPG shops may be involved. Perhaps Omnicom will enter the fray too. It’s a Corporate Cultural Collusion competition. May the best White man win.

Pizza Hut Launches Creative Review

Incumbent Martin Agency Says It Will Defend Business

By Maureen Morrison

Yum brands’ Pizza Hut has launched a review for its creative account.

The business has been with Interpublic’s Martin Agency since 2009, when the shop succeeded longtime incumbent, Omnicom’s BBDO. Martin said that it was defending the account but referred all other questions to Pizza Hut.

“Pizza Hut is continually looking at fresh ways to enhance its marketing efforts and strengthen relationships and points of engagement with pizza lovers. As a result, we are conducting an advertising agency review,” said the marketer, noting, “We are thankful for the commitment The Martin Agency has made to our business over the past 3 ½ years and have invited them to participate in the review process.”

Pizza Hut declined to disclose participating agencies and whether a search consultant was involved.

Pizza Hut’s media agency, Publicis Groupe’s Optimedia, is unaffected by the search.

Among parent company Yum Brands’ chains, Taco Bell and KFC, Pizza Hut is the third-largest measured media spender, according to Kantar Media. In 2012, Pizza Hut spent about $240 million on U.S. measured media, while KFC spent about $263.5 million and Taco Bell spent about $280 million.

11051: Tacos Create Jobs.

From KMBZ…

Taco Bell’s Doritos Taco Equals 15,000 Jobs

(LOUISVILLE, Ky.) -- Taco Bell, which added 15,000 employees last year, can largely thank one new product, company chief executive Greg Creed told The Daily Beast.

Creed attributes the success to Doritos Locos Tacos, which the company rolled out in March 2012 and was the “biggest launch in Taco Bell history,” he told the Beast.

In 2012, 375 million of the tacos, whose shell is made from nacho cheese Doritos in a collaboration with Frito-Lay, were gobbled up, which averages out to about one million per day.

But why stop there? On March 7, it launched Cool Ranch Dorito Locos Tacos. The slogan? “Collect All Two.”

“We believe we can add 2,000 new restaurants in the next 10 years, because what we have is proprietary and exclusive. Nobody else can make a Cool Ranch Doritos Taco. And that’s just in the U.S.,” Creed told the Beast.

Creed was traveling Thursday and unavailable to talk to ABC News, a spokesman said.

Taco Bell is part of Yum! Brands, Inc., based in Louisville, Ky. It’s one of the world’s largest restaurant companies with more than 39,000 locations in 125 countries. Its brands include KFC and Pizza Hut.

11021: Blacks Lead With Fast Food.

From Afro.com…

Fast Food Consumption Down, But African Americans Still At Front of Line

By Alexis Taylor

Blacks are lining up in drive-thrus, eating at fast food restaurants, or adding pizza to their daily diet at a rate higher than any other ethnic group in the country, according to new information released by the Centers for Disease Control (CDC), though overall adult fast food consumption is down.

In a study conducted between the years of 2007 and 2010, a little more than 11 percent of all food consumed by adults was from fast food, or quick service restaurants (QSRs).

That number was a decline from the 12.8 percent of adult diets made from the kitchens of McDonalds and Wendy’s from 2003 to 2006.

African Americans between the ages of 20 and 39 were shown to have the most fast food in their diet when compared with their Caucasian and Hispanic counterparts, as one-fifth of their calorie intake came from quick service restaurants.

“Fast food is quick and I don’t have time to cook with my lifestyle,” said Kelli Williams, a 24-year-old lab technician. “I’ve gained weight but I think it’s because I’ve been less active physically since I graduated,” she said, adding that her habit of eating fast food multiple times a week hasn’t changed.

“I don’t even like fast food that much but it’s convenient.”

The study showed that for Williams’ age group, 20-39, the presence of fast food in the diet decreased as take-home pay increased.

A separate CDC report on fast food and children ages 2 to 19 showed that the daily calorie intake average shrunk for young boys by 158 calories in the time between studies conducted from 1999 to 2000 and again from 2009 to 2010. Girls decreased their caloric intake by 76 calories.

Researchers also found that for heavier Americans, weight increased as the amount of food taken into the body from fast food restaurants increased.

“As lifestyles become more hectic, fast-food consumption has become a growing part of the American diet,” read information released by the CDC. “Fast food is food usually sold at eating establishments for quick availability or takeout. More than one-third of U.S. adults are obese, and frequent fast-food consumption has been shown to contribute to weight gain.”

The study showed that older adults aged 60 and over, ate at quick service restaurants less than younger Americans with only 6 percent of their diet coming from quick service restaurants. Men and women of that age group had no considerable difference in the amount of fast food they ate.

According to the National Center for Biotechnology, “findings suggest that higher rates of fast food consumption are connected to the increasing rates of severe obesity.”

The World Health Organization estimates that one in 10 humans are currently obese, opening themselves up to a host of diseases such as heart disease, stroke, and type 2 diabetes.

10606: Political Product Placement Pizza.

From The Chicago Tribune…

Pizza Hut stunt a pie in the face of debate decorum?

Reuters

During the next presidential debate, the candidates will be pondering the important questions of our time. But the most controversial may be “Sausage or pepperoni?”

Pizza Hut is offering a lifetime of free pizza—one large pie a week for 30 years—or a check for $15,600 to anyone who poses the question to either President Barack Obama or Republican candidate Mitt Romney during the live Town Hall-style debate next Tuesday.

The proposed stunt, which the pizza chain announced Tuesday, threatens to tick off millions of viewers who are expected to tune in to the debate to hear what the candidates have to say about the economy, health care and other serious concerns facing this country.

“It’s a terrible waste of time for the presidential candidates, the people who organize the debate and everyone who wants to listen,” said Mickey Sheridan, a 43-year-old bartender from Queens, N.Y., who is a Pizza Hut fan. “They should find some other way to advertise.”

Pizza Hut’s move comes as marketers continue to look for new ways to engage TV audiences that increasingly are resistant to their traditional commercials. It’s also happening at a time when Americans are paying closer attention to presidential debates. On Oct. 3, an estimated 67.2 million people watched the first debate between Obama and Romney, the largest TV audience for a presidential debate since 1992, according to Nielsen’s ratings service.

It’s not the first time a question that could be seen as frivolous has been asked of a president or candidate during a live, televised events. One of the most famous moments in TV history came during a 1994 MTV Town Hall when an audience member asked then-President Bill Clinton whether he wore “Boxers or briefs?” Clinton’s sheepish response, “Usually briefs,” became an indelible moment in pop culture.

But such moments don’t always end well. During Obama’s 2009 State of the Union address, for instance, South Carolina Congressman Joe Wilson yelled out “You lie, you lie.” Wilson quickly apologized but was widely criticized by members of both parties for the breach of decorum.

“I think people are frustrated with the political process, but they don’t want it to become a zoo,” said Allen Adamson, managing director of branding firm Landor Associates in New York.

It can be even more difficult for marketers to get away with such outbursts. While companies long have used hot political topics to gain publicity for their brands, it can backfire. For example, there was backlash in February 2011 when Kenneth Cole compared the Arab Spring uprisings to a frenzy over the U.S. designer’s spring collection. The company later apologized.

“Context really matters,” said Deborah Mitchell, clinical professor of marketing at Ohio State University. “Political satire is fine if it’s in the context of where people are expecting it. When context is violated that’s when you run into trouble.”

Even if Pizza Hut’s stunt doesn’t turn off viewers, Laura Ries, president of Atlanta-based brand strategy firm Ries and Ries, said it still will likely fail. That’s because it does not substantially connect back to the Pizza Hut brand.

“The problem is that it’s too contrived; it’s completely made up,” she said. “For something to move past silly gimmick and become more successful brand connection, it does have to have some sort of relevance.”

To its critics, Pizza Hut, a unit of Louisville, Ky.-based Yum Brands Inc., said there is room for both serious and lighthearted questions in the debate, which will be broadcast on most network and cable news stations.

“We know there are a lot of serious topics that are going to be debated and need to be debated,” Pizza Hut spokesman Doug Terfehr said.

But Terfehr said the pizza chain, which operates 10,000 restaurants in 90 countries, saw this as a way to ask an “everyday question” that people can relate to. “Pizza seems to be a question everyone understands.”

John Dunn, 51, a manager of a data center from North Carolina, said Pizza Hut’s question is one that should not be asked during the presidential debate. “This election means a lot to me,” he said. “I’d rather ask them a more important question if I actually had the opportunity to ask a presidential candidate a question.”

To be sure, because of rules governing the debate, Pizza’s Hut stunt may not even be possible. The first Town Hall-style presidential debate was in 1992 and there were not many rules, which made for a lively debate, says Alan Schroeder, a professor of journalism at Northeastern University and author of “Presidential Debates: 50 Years of High-Risk TV.”

But since then, campaigns have added many restrictions in their negotiations in the way audience members can ask questions. The terms for this year haven’t been made public, but in the past, Schroeder notes that audience members have had to arrive early and write out their questions on notecards, with the moderator selecting among the questions that got the green light.

Even if someone attempts to ask the “Sausage or pepperoni?” question, it’s likely they would get immediately shut down. That’s because in 2004, campaigns negotiated a rule that an audience member’s microphone would be cut off if they start to veer from pre-determined questions.

In any case, Schroeder, the journalism professor, said he doesn’t think anyone who makes it into the debate audience will dare pose the question to the candidates.

“It’s so unseemly, for a lifetime of free pizzas, to make a fool out of themselves in front of millions of people,” he said. “They’d have to give a partial ownership of the company for that.”

10563: Taco Bell Says No Más Media, Draftfcb.

Advertising Age reported Taco Bell is reviewing its media-planning duties—and incumbent Draftfcb is not part of the plan. Perhaps the cross-cultural experts should spend more time honing their cross-discipline skills. The inevitable layoffs hopefully won’t include too many minority executives. After all, Taco Bell’s target audience is primarily White, as Latinos won’t touch the shit, despite the efforts of Chef Lorena Garcia. Taco Bell CMO Brian Niccol insisted the review is based on a desire to “set the brand up for success over the next 50 years.” Well, that explains the decision to dump Draftfcb, since it likely won’t be around in 50 years—or even 50 months. Then again, don’t bet on Taco Bell being around either. Hey, there are only so many flavors of Doritos to use for Locos Tacos extensions.

Taco Bell Embarks on Media-Agency Search

Fast Feeder’s CMO, Brian Niccol, Wants to ‘Set the Brand Up for Success Over the Next 50 Years’

By Maureen Morrison

A plum piece of media business is up for review: Yum Brands’ Taco Bell is searching for a new partner to help it with media-planning duties, Ad Age has learned.

The business had been handled by Interpublic’s DraftFCB, Taco Bell’s lead agency, and it is understood the agency would not participate in the review. A spokesman referred calls for comment to the restaurant chain.

It was not known whether a consultant is overseeing the review, but Santa Monica-based consultant Select Resources International oversaw the Taco Bell digital review earlier this year, which went to Publicis Groupe’s Digitas. WPP’s MEC will continue to handle media buying; Digitas, the chain’s digital agency of record, handles digital media planning.

Not only is the search for a new media-planning shop a compelling brand opportunity for shops—in a year that hasn’t seen many media reviews—Taco Bell is also a sizable ad spender.

Parent Yum Brands ranked as the 50th-largest national advertiser last year, according to the Ad Age DataCenter, with total spending of $835 million. Of that amount, it devoted the most to Taco Bell, followed by Pizza Hut, then KFC.

The search has been initiated by Brian Niccol, chief marketing and innovation officer at Taco Bell—a new role he was appointed to one year ago following a stint at Pizza Hut.

“DraftFCB continues to be our lead agency, and we’re extremely proud of their creative work,” Mr. Niccol said in a statement to Ad Age.

He went on to describe why the restaurant is looking to shake up its media-agency strategy. “Over the last few months we have been working with our franchisees to set the brand up for success over the next 50 years—specifically how we can lead and maintain leadership in traditional, social and digital media,” Mr. Niccol said. “These include two-step changes that will position Taco Bell for growth. The first is how our media is spent, which includes a new agreement that shifts from local to national, includes Hispanic and more digital. Second is our media strategy. To build off our current success, we are actively looking for an agency partner to help us with national media-planning strategy.”

Although DraftFCB is maintaining much of its Taco Bell business, the departure of this piece of the account—along with the loss of the digital account to Digitas—signals the relationship may not be as strong as it once was.

Taco Bell is also especially important to DraftFCB after losing the entire MillerCoors account earlier this year, as well as SC Johnson last year and much of the Kraft business—all accounts that were won by predecessor agency Foote Cone & Belding. Notably, Taco Bell, along with Yum sibling KFC, is one of the last major creative accounts from the FCB era. Wins the agency can tout have included Cox and Discover.

It may not be the last of the moves on the account either. Several executives familiar with the matter said that other roster agencies and Interpublic shops are being considered for additional potential Taco Bell assignments. Taco Bell did not respond to questions regarding the matter.

From a creative perspective, DraftFCB has some reprieve given special promotions have helped Taco Bell improve sales this year, after a slumping 2011. That was thanks in large part to its Doritos Locos Taco, its largest product rollout ever. The chain also this year rolled out its upscale Cantina menu.

The Taco Bell account is handled largely out of DraftFCB’s Orange County office. The agency’s other big piece of Yum business, KFC, is handled out of Chicago. Much of DraftFCB’s New York office is in the health-care business, though that shop earlier this year won the Sea World account.

Contributing: Alexandra Bruell

10507: Taco Bell Plots Next Offensive Move…?

You know the hacks at Taco Bell watched the 60 Minutes interview with “Mark Owen”—the former Navy SEAL who participated in taking down Osama bin Laden—and wondered how to leverage the story into a new menu item. “Owen” revealed that after the mission, he visited Taco Bell for two tacos and a burrito. Oh, the marketing minds at Yum! Brands and PepsiCo are likely holding top-secret brainstorms, concocting combinations of faux Mexican food, Frito-Lay chips and Gatorade. Perhaps they’ll introduce the bin Laden Burrito and Gatoraid Combo—with free night vision goggles for Fourth Meal warriors—and try to hit a September 11 launch date.

10470: The Latest Laziness From Taco Bell.

The Associated Press reported on the latest lazy move from Taco Bell—a morning drink featuring Mountain Dew. The fast feeder whose most popular innovations involve combining crap created by PepsiCo is doing it again, now blending Mountain Dew with Tropicana orange juice. What’s next? Birthing a lovechild between Chef Gordon Ramsay and Chef Lorena Garcia?

Taco Bell to offer new morning boost: Mountain Dew drinks

ASSOCIATED PRESS

NEW YORK (AP) — Rise and shine. It’s time for breakfast soda.

Taco Bell said Friday that it’s adding Mtn Dew A.M — a mix of Mountain Dew soda and Tropicana orange juice — to its breakfast menu, which was rolled out earlier this year at select locations. Separately, the industry tracker Beverage Digest said that PepsiCo Inc. next year plans to introduce a drink made with juice, Mountain Dew Kickstart.

Mtn Dew A.M. is mixed in restaurants and only available at Taco Bell. Kickstart would be a packaged drink sold by PepsiCo.

John Sicher, publisher of Beverage Digest, noted that giving consumers drink options for the morning is a way for companies to boost their performance. Overall, per capita soda consumption has been on the decline since hitting its peak in 1998.

Mountain Dew Kickstart would also be a way for PepsiCo to feed off the popularity of energy drinks, which saw sales volume grow by nearly 17 percent last year. Each of the top three brands — Monster, Red Bull and Rockstar — saw double-digit gains, according to Beverage Digest.

A representative for Taco Bell wasn’t immediately available to provide details on the orange juice-to-soda ratio in Mtn Dew A.M., or how widely it was available before earning a permanent spot on the breakfast menu. A PepsiCo spokesman declined to comment about Kickstart.

Taco Bell, which is owned by Louisville, Ky.-based Yum Brands Inc., announced the addition in conjunction with its new A.M. Crunchwrap, which combines scrambled eggs, cheese, a hash brown and bacon or sausage in a single tortilla. It has 680 calories with bacon, or 730 calories with sausage. A 16-ounce cup of Mtn Dew A.M. has 160 calories.

The Mexican-style chain introduced breakfast — which it refers to as “FirstMeal” — at about 800 restaurants in 14 states earlier this year. The chain plans to take the menu national by 2014 if the test goes well.

Although Taco Bell is looking to expand by offering higher-end options such as its new Cantina Bell menu, it’s also finding success by appealing to younger men who crave junk food. In the U.S. sales at Taco Bell restaurants open at least a year experienced double-digit growth during the second quarter.

Yum Brands attributed the boost to its new tacos featuring shells made out of Nacho Cheese Doritos.

10460: Living La Vida Doritos Locos Tacos.

After selling 200 million Doritos Locos Tacos, Taco Bell is poised to offer two new flavors in its line of faux Mexican fast food. Wonder if Chef Lorena Garcia will be consulted in the concocting. According to Wikipedia, Doritos were invented in Disneyland—hardly a place known for its culinary creativity. Interestingly enough, Taco Bell’s menu items are almost cartoonish.

10315: Taco Bell Con Artistry (Continued).

A comment left for the previous post rightly wondered who Taco Bell is really addressing with its campaign starring Chef Lorena Garcia. To be clear, MultiCultClassics did not think the fast feeder was wooing Latinos. Sorry for the clumsy writing. Probably should have typed something like: Latinos know better than to believe Taco Bell creates authentic Mexican food, but maybe White folks will be conned after seeing a Latina chef allegedly cook up new menu items. Then again, that line doesn’t really capture the essence of Taco Bell’s questionable marketing move. On the universal scale of authenticity for Mexican food, Taco Bell occupies the end alongside Fritos® and Doritos®—and fittingly, its most popular recent launches incorporated the snack chips. Perhaps Taco Bell is responding to competitors such as Chipotle and Qdoba, where the food is closer to being legitimate. Or maybe someone at Yum! Brands figured if Popeyes can be successful with Annie the Chicken Queen, Taco Bell will thrive with Chef Lorena Garcia. Regardless, the comments at YouTube show others are not buying the bullshit:

One of these things is not like the other: “Taco Bell” and “gourmet”

...or “Taco Bell” and “flavor”

...or “Taco Bell” and “tasty”

deedeebolden

:::

The cantina bowls suck, they’re bland and not good at all—doesn’t even compare to Chipotle in the slightest.

bmonee5

:::

[Taco Bell] could SHIT in their tacos and people would still buy, wtf is this shit?

AddictsPalato

:::

as if it wasn’t obvious that taco bell is for when you’re drunk and/or high as fuck

ScottEast91

:::

BRING BACK THE CHEESY BEAN AND RICE BURRITO YOU BASTARDS!!!

anoopks

:::

Hell yes! The execs at taco bell are dumber than a brick wall. People go to taco bell for fast, cheap food that tastes really good.

This is speculation but when they introduce new products like this cantina crap, they discontinue older stuff to make room and lower cost. Idiots.

I love how taco bell is flaunting its social media praise (notice how they only select the best reviews) yet they ignored a 3-year-long social campaign to bring back the chili cheese burrito. They don’t listen to us.

logictrigger

:::

Why is Taco Bell trying to pretend to be Mexican? Lol. This Cantina shit is WAY too overpriced anyway haha

NeenaAndEmily

:::

Can you honestly call your food gourmet if you have to seriously rework the definition of the word? I highly doubt the line servers at my local Taco Bell will be able to make this appetizing or digestible just because a so-called world-class chef created this concoction.

ramesesmmx

10281: Even More Cannes Crapola.

Campaign interviewed Global Marketing Leader for Yum! Restaurants International Klara Farkas at Cannes, and the discussion included the dearth of dames in marketing and advertising. While recognizing the alleged problem, Farkas said, “It becomes more difficult in terms of identifying what to do about it.” Um, you might consider not executing promotions like the one depicted below. Ms. Farkas could also force encourage her advertising agencies to stop being so sexist and exclusive in their hiring practices. Just spitballing ideas here.

Cannes 2012: Yum! Restaurants’ Farkas talks about women in the industry

By Georgina Brazier

Klara Farkas, global marketing leader for Yum! Restaurants International, (parent to brands including KFC and Pizza Hut) talked to Campaign about the role of women in marketing and advertising and what can be done to “elevate and advance” women in the industry.

Sitting on a panel for a discussion surrounding the topic at Cannes, Farkas said women currently occupy over half the positions in both advertising and marketing internationally, but that only a small percentage have secured leading roles.

She said: “Only 3% of women are in the ‘seasweep’ and being represented, currently. Women, while they may start their careers with the ambition to grow and climb the ladder, they are forced into making choices that require them to be a bit more flexible and maybe get them off track. We need to get them back on track.

When asked about the reaction to the panel talks, she emphasised that the response from industry is “always positive” and that there is an “overwhelming willingness” to discuss the topic.

She said: “It becomes more difficult in terms of identifying what to do about it.”

“What are the specific things that companies, agencies can do to address the issue and what sort of processes can be incorporated into the culture to make sure that women are given the opportunities—are sponsored and advocated by other people within the organisations.”

Jenelle Tilling, vice president, marketing at KFC UK and Ireland recently [talked] about her role as a mentor to colleagues at various Yum! Businesses and her place on the executive committee of Women in Advertising and Communications in London. She uses this opportunity to give advice and learn from talented women in the industry.

During the interview Farkas also spoke about her first experience of Cannes, highlighting what she has learnt about how to be a better client and also the importance of digital in the food market.

9475: Hungry With Yum!

Advertising Age’s GoodWorks published a fluff piece on Yum! Brands World Hunger Relief initiative, “which raises awareness and funds for [United Nations World Food Programme] and other hunger relief organizations as well as stimulating volunteerism.” OK, it’s undoubtedly a noble and necessary endeavor. But it’s odd that a corporation is passionately fighting hunger while fueling obesity. Yum! worries about starvation in Kenya and opens a KFC there too. And the company declared, “Just $1 provides four meals for hungry people who desperately need our help.” Is that an impoverished country’s version of The Fourth Meal from Taco Bell? The Yum! Brands executive behind the Ad Age story insists his company’s hunger-related efforts are not about marketing products. Yeah, but they sure serve up lots of self-promotion on the subject.

9229: KFC = Kenyan Fried Chicken.

USA TODAY reported KFC is now in Kenya. Can’t wait to see the Draftfcb advertising. Perhaps the fast feeder will simply repurpose this gem.

KFC goes to Kenya: first U.S. fast-food chain in E. Africa

By Jason Straziuso, Associated Press

NAIROBI, Kenya – You can’t buy a Big Mac in Kenya. There are no Burger Kings. But there’s good news for chicken lovers: KFC just opened its first restaurant in East Africa.

The shiny red-and-white KFC in the new wing of an established Nairobi mall is the first American fast food outlet in East Africa’s most developed economy, and there are indications its entrance could herald a rush of U.S. chains into this untouched but potentially lucrative landscape.

The major reason that neither golden arches or Whoppers are found in Nairobi is concern over the supply chain. KFC investors worked with a Kenyan chicken supplier for more than a year to bring it up to the quality control standards demanded by KFC’s parent company, Yum Brands (YUM), based in Louisville, Ky.

The restaurant’s Aug. 11 opening was met with long lines of enthusiastic customers. Some waited up to 90 minutes to be served.

At 2 p.m. Tuesday, about 40 people stood in a single line that flowed to five cash registers. Most of the restaurant’s 100 seats were filled.

Customers Zahir and Rahat Lalji smiled as they ate a Zinger sandwich and a two-piece chicken meal. Rahat Lalji said she had been anticipating the opening for months.

“We really appreciate that this KFC came to Kenya after many years. We’re really happy it’s here,” said Zahir Lalji, a 36-year-old in the transportation business who studied in Canada and worked at a McDonald’s there.

“We’re hoping McDonald’s will come in,” he said. “Pizza Hut, Dunkin’ Donuts. It’s an open market for those with investment capital.”

Gavin Bell, the restaurant’s general manager, said KFC’s Kenyan chicken supplier — Kenchic — had to make more policy and procedural changes in the last year than in the company’s first 20, including ensuring that the chicken was kept cold “from farm to fork” and that supplies could be easily traced in the event of recalls. Calls to Kenchic for interviews were not answered.

“Those are tall orders for companies that haven’t based themselves on that,” Bell said. “Those are standard practice in Europe, America, Australia. However in this part of the world we are raising the benchmarks of the supply chain, and the hospitality standards at the same time.”

David Kincheloe, president of the U.S. group National Restaurant Consultants, said he began looking into a KFC franchise in Kenya for a different investor 2 years ago, but the biggest obstacle was the supply chain. Kincheloe said it’s logical that KFC is paving the way for more U.S. brands.

“Yum Brands is working their way into the African market,” he said, referring to KFC’s parent company. “Once you’re able to get KFC in and you’re able to work out the issues with the supply chain maybe you’ll see a Long John Silver’s, a Pizza Hut, a Taco Bell.”

The Nairobi KFC investor group includes a man whose family owns 40 KFC restaurants in South Africa, and there are plans for expansion here. Two more KFCs are slated to open in Nairobi this year, and Bell said the group wants to open 15 restaurants in Kenya, Tanzania and Uganda in the next three years.

Bell said he believes McDonald’s doesn’t want to be left out of East Africa. “It’s only a matter of time … and a matter of finding the right partnership for the brand, the franchisee and the franchisor,” he said of a possible McDonald’s entry. McDonald’s didn’t return a call seeking comment.

The national chairman of the Kenyan National Chamber of Commerce and Industry, Laban Onditi, said the fact that KFC chose to open in Kenya first, among all other East African countries, shows the country is an investment destination.

“In Kenya there is still a very virgin market that has not been fully tapped,” he said.

Kenya does have fast food restaurants from South Africa, like the hamburger restaurant Steers. It also has Pizza Inn and Chicken Inn, but no American chains until now.

Chicken Inn is where Albunus Kithokoi was working until he landed a job as a KFC manager. His training included more than three months working at KFC outlets in South Africa. When the 37-year-old opened the restaurant’s glass doors for business, he folded them up near a sign explaining how Colonel Sanders opened his first restaurant in Kentucky in 1939.

“This is a brand that everyone knows. They say the queue is long, but it’s worth it. They don’t mind the wait,” Kithokoi said.

Among the many groups of children at KFC was Beverly Onyango, who turned 12 on Tuesday. Onyango, who has done quite a bit of international travel and is familiar with American fast food, named KFC as her favorite restaurant. She’s eaten at outlets in Dubai and Thailand, but is happy to finally have one in Nairobi.

“Not having to go somewhere else is good,” she said.

9228: Taco Bell Is Authentically Lame.

Guess nonauthentic Mexican food warrants a wannabe hip hop commercial. Meanwhile, the Taco Bell YouTube Channel features a Das Racist video—along with a comment that reads: A shit song. I absolutely hate it.

9226: 6.5 Seconds Left For Draftfcb…?

Advertising Age reported Taco Bell CMO David Ovens resigned, and Yum! Brands officials insisted advertising agency Draftfcb won’t be affected by the move. In other words, the countdown to an agency review can start now. Ad Age also reported Miller Lite Brand Marketing VP Grant Leech left the company, and MillerCoors officials insisted advertising agency Draftfcb won’t be affected by the move. In other words, the countdown to agency annihilation can start now.

9004: Raise Your Advertising’s Taste Level, Yum!

Advertising Age reported Yum! Brands Chairman-CEO David Novak challenged his advertising agencies to lift sales at KFC, Taco Bell and Pizza Hut. Apparently, U.S. Yum! franchises are not growing at the rate that the international business is experiencing. Draftfcb mishandles KFC and Taco Bell, while The Martin Agency oversees Pizza Hut. Somebody alert Novak that Draftfcb honcho Howard Draft admitted only 20 percent of his agency’s work is outstanding—and it’s safe to say KFC and Taco Bell are in the 80 percent silo.

The problem is not with Yum! Rather, its main agency is Yuck!

8888: The New Black Consumer Market.

Advertising Age reported on marketers’ growing interest in the Black consumer market—but in Africa, not the United States.

Marketers, Agencies Eye Booming Africa for Expansion

Foreign Companies Seek Local Talent as KFC, Walmart and Others Increase Business on Continent

By Emma Hall

The world’s second-largest continent is no longer the “next big thing”—Africa has arrived.

It’s a huge and compelling market, three times the size of China, home to six out of the world’s 10 fastest-growing economies, according to The Economist, and home to a billion people, 40% of who are under the age of 50, half of who have a mobile phone and 40% who are living in urban areas.

KFC, Walmart, Nestle, Danone and India’s Bharti Airtel telecoms are among the companies taking African expansion seriously. KFC currently has around 655 outlets in Africa; by 2020, parent Yum Brands wants to have 2,100 KFCs across the continent. Walmart is in the process of a $2.5 billion takeover of South Africa’s largest retailer, Massmart, which has 290 stores in 13 countries around Africa. Nestle recently announced a $1 billion investment in Africa over the next two years. The company plans to build new factories in Angola, Congo, Mozambique and Nigeria with the aim of doubling its African business—which already brings in 3% of Nestle Group’s sales.

The activity has spurred a local talent hunt by both marketers and agencies, the latter of which are gearing up their Africa operations. “It used to be that, when clients wanted to work with us in Africa, we’d find a local partner and assign the work to them,” said Loris Nold, VP-business improvement at Publicis Groupe. “But when big clients who spend heavily start showing explosive growth in Africa, you want to take control of those opportunities.”

In January, WPP took a controlling stake in Ogilvy South Africa and acquired 50% of Mindshare South Africa. Last year WPP’s TNS bought a majority stake in RMS, the largest custom-research agency in West and Central Africa, and Ogilvy created a joint venture with Kenya-based Scangroup. Publicis Groupe recently changed the leadership at all its agencies in South Africa, filling every position with local talent. In Ghana, Kofi Amoo-Gottfried (nephew of former U.N. Secretary General Kofi Annan) set up a Publicis agency in 2009, which now serves 20 markets in the region.

“There’s a new breed of marketing talent, and it’s increasingly possible to find really good African marketers,” said Frank Braeken, Unilever’s exec VP North Africa, Middle East and Central Africa. “People are convinced that the continent offers them a future.”

That’s not to say there still isn’t a learning curve. Distribution and pricing are, according to Mr. Braeken, “critical acts of marketing” in Africa. There are other challenges, too. When hypermarkets make up only 5% of retail space, promotions are difficult to orchestrate on any scale, so a lot of effort goes into market development instead. To grow the toothpaste market, for example, Unilever is campaigning to get consumers to brush their teeth twice a day; and to grow Knorr—which is most often used in the traditional corn and beans dish githeri—it is persuading consumers to use it in other recipes.

Unilever has been offering free rides in Knorr-branded buses, during which they tell consumers about the brand’s versatility. For the Omo detergent and Sunlight dishwashing brands, they entertain people in open markets with demonstrations and sampling.

While billboards, press and TV are still the dominant media in Africa, digital is catching up fast. Undersea cables have been laid down on the East and West coasts, bringing millions of homes online and reducing costs for existing users. Roughly 10% of Africans are online, and in Nigeria the figure leapt from 13% in 2009 to 22% in 2010, said Benedicte Kodjo, Lowe’s regional business director for North Africa and the Middle East.

“Africans are late early adopters,” said Rick de Kock, TBWA’s director of Africa operations. “Once they get the technology, they run with it.”

8831: Dead Fish From Long John Silver’s.

The last recalled news about Long John Silver’s appeared in January 2011, when Advertising Age reported Yum! Brands sought to sell off the fish food chain, along with A&W. Before that story ran, in July 2007 Adweek reported the creative duties for Long John Silver’s had been won by Northlich—and the Cincinnati-based agency features fishy commercials on its website. Not sure if Northlich is responsible for the spots currently running, but the work is worse than awful.

Why is a gleeful lunatic bursting uninvited into a family’s kitchen—as well as on the front porch—with LJS food?

And the grinning sidekick presenting the seafood feast justifies use of the R-Word.