Question

Taco Bell is part of Yum! Brands, which includes chains such as KFC and Pizza Hut. The case reports an interview with Nick Dawson, the general manager for Taco Bell in the UK and Europe charged with introducing and expanding the Taco Bell chain in the region. Mr. Dawson discusses the franchise model of market entry and how Taco Bell develops its franchisees to succeed.

1. How would you assess Mr. Dawson's qualifications to hold his current position? Does he fit your image of an expatriate manager?

2. Taco Bell plans to open 1000 new restaurants around the world next year. How can they offer such a unique product in so many different markets?

3. Taco Bell left the UK after 10 years in 1990. What can they do different now to succeed?

Get mex: Taco Bell is planning UK and European franchise expansion over the next few years, Nick talks to Business Franchise about the brand's success and future plans

Business Franchise

Nick Dawson

Nick Dawson has had a career of 20-plus years with Yum! Brands, where he is currently general manager for Taco Bell In the UK & Europe and heading up the introduction and expansion of the brand in the region.

Taco Bell operates 21 units In UK, Spain and Cyprus today, exclusively through franchise partners and will continue steady franchised development into new markets. Prior to taking on this role in 2009, Nick held senior supply chain, new product development and operations positions with both the KFC and Pizza Hut brands across Europe and has worked closely with franchise partners at every stage of his career. Here, he talks to Business Franchise about market- leading food brand Taco Bell.

Tell us a bit about yourself--what's your background and history with Yum! Brands?

Having studied modern languages and then a masters In European business and management, I joined the company in July 1993 and have been here ever since! During that time, I have worked on all three Yum! Brands in a variety of functions. I have been focussed on UK and Europe, including a six-year spell based in France with KFC. Working with franchise partners has been an important and enjoyable part of all of my roles. As general manager for Taco Bell in UK and Europe, I am now very excited to be leading the brand's development in the region.

Tell us a bit about the company, what are Taco Bell's origins?

Taco Bell has been a pioneer in the Mexican quick-service restaurant (QSR) segment, and was started in 1962 by our founder, Glen Bell. From humble beginnings at our first location, we have now grown to over 7,000 locations, in 25 countries around the world. Taco Bell serves freshly prepared tacos, burritos, quesadillas, nachos and many more unique Mexican-inspired tastes.

As a brand of firsts, we were one of the first QSRs to offer a value menu, free refills, our own proprietary beverage (Mountain Dew Baja Blast) and a branded late-night "daypart" with FourthMeal. Over 40 million fans visit a Taco Bell around the world each week. We currently operate restaurants in North America, Central and South America, Europe, the Middle East, and Asia. Our international expansion has been very healthy and we continue to grow each year. Our goal is to add an additional 2,000 restaurants in the US, and 1,000 restaurants around the globe in the next 10 years. Taco Bell continues to create a global brand presence and was awarded Advertising Age's Marketer of the year in 2013, Adweek's Hottest Digital Marketer In 2014, and most recently, Fast Company's Top 10 Most Innovative Companies In Marketing and Advertising, 2015.

Tell us about the franchise expansion plans--what qualities would a franchisee need to have?

We are indeed seeking new franchisees to help us grow. Criteria include, first and foremost, passion and enthusiasm for the brand. They must be well capitalised, and prepared to invest In a growing business over the long term, and have prior operations expertise. Site identification experience is also a plus.

Taco Bell entered the UK market in the 1980s with stores in London that subsequently closed, so what's the current relationship with the UK (and Europe) and what are the plans to expand? What's different this time and why now?

Taco Bell operated in the UK starting from 1980s and to the early 1990s. While the brand had a very loyal fan base, we recognised that the concept was ahead of its time.

The lessons we learned back in 1990 have also been incredibly beneficial to us. Taco Bell launched in the UK in June 2010 as part of a more focussed effort to move to expand the Taco Bell brand internationally. Our decision was based, among key other criteria, on a vibrant QSR market, high brand awareness and a growing Mexican category in both food service and retail. We are incredibly optimistic about the UK opportunity. We have a dedicated team on the ground to support Europe including the UK, who report to and are supported by our Taco Bell headquarters In Irvine, California. We have built a robust and reliable supply chain here in

Europe. We have also used insights gained from our initial entry into the market to balance the tastes that Taco Bell Is known for in the US, with locally relevant fare that stays true to Taco Bell's innovative, craveable and affordable Mexican-inspired food.

We currently have four restaurants: three located in food courts located in the intu Lakeside Shopping Centre, Eastgate Shopping Centre, Basildon and the Manchester Arndale shopping Centre plus a high-street restaurant in Ecclesall Road, Sheffield.

Customer response has been phenomenal to all of our restaurants attributed to a compelling combination of great-tasting food you can't get anywhere else and real value.

Social media channels reflect the enthusiasm with calls from other communities asking for Taco Bell. Along with current and future franchise partners we do plan to accelerate development. With two new units already under construction we expect to double our presence by the end of 2015. We estimate then launching five to 10 new restaurants every year as we scale up in the UK.

What areas are you looking to launch and in what kind of sites? More shopping centres/retail parks? Do you envisage a high-street presence like other quick-service restaurants that are well established in the UK? a

We anticipate a national footprint and a presence In most major cities and within the M25, particularly those with a large student and urban populations. We are primarily seeking high- street locations, and will also consider well-frequented retail and leisure schemes and transport hub and similar locations if they meet our brand experience criteria. In the Immediate term, we are focussed on building out and around current locations in Sheffield and Essex for example.

What does the Taco Bell opportunity have over its near competitors?

Taco Bell has great-tasting, fast, quality, and craveable Mexican-Inspired food consumers can't get any where else.

Our customer service, the in-restuarant experience and value for money are industry leading. Our brand promise is also differentiated in the current QSR landscape.

What support and marketing do you supply for franchise partners? What benefits can franchisees expect to reap?

Franchisees will be joining forces with a well-established multinational brand with a strong level of awareness and pull from consumers. They will have access to our brand immersion, on- boarding and training programmes.

Once open they will receive support in all functional areas: proven tools and processes from a local store marketing and operations perspective, external audits for customer satisfaction and food safety and an established supply chain for food and equipment. We also will provide ongoing business reviews and best practice sharing forums for our franchisees.

Most Importantly, we support them in living and breathing our Live Mas culture, which ensures that their teams and our customers have a great Taco Bell experience.

Answer 1

1. Nick Dawson qualifications are quite apt for his job at Taco Bell. He holds a rich work experience of 20 plus years in the industry. This work experience would help him in managing the expansion plans of the company in UK and Europe. He had substantially handled new product development and operations in KFC and Pizza Hut across Europe and would be well accustomed with the market. Hence his vision and leadership will prove to be quite fruitful for Taco Bell.

2. Taco Bell is planning to open 1000 new restaurants around the world next year. This plan has been backed up by the love given by the customers in the past. Taco Bell has emerged to be a leader in Quick serving restaurant (QSR) segment and has been successful in building a strong brand for itself in the market. Customers consider Taco Bell synonymous to Mexican food. The company is trying to capitalize on this brand strength, through its expansion plans. It is trying to serve delicious Mexican food, through its outlets, across the globe.

3. When Taco Bell had been launched in the UK in 1990, the concept of QSR was quite new in the region. This was the primary factor behind its failure in 1990. But things have changed now. There is greater awareness and affinity for QSRs. Also there is a dedicated customer base for Mexican food as well as Taco Bell. The new franchises in UK will capitalize on this brand strength. They also have clearer focus as they know about the customer requirements. Hence things are quite different in UK from what it was, 10 years back.