Case Study of

Taco Bell

What we will do
In the below prsentation we will: Review the performance of Taco Bell Examine reasons for reduced productivity Review overall effects after reengineering

What is Taco Bell

Taco Bell is an American chain of fast-food restaurants based in Irvine, California. A subsidiary of Yum Brands, Inc., which serves American-adapted Mexican food. Taco Bell serves tacos, burritos, quesadillas, nachos, other specialty items, and a variety of "Value Menu items.

Company History
TimeLine 1946 Discovery Glen Bell-opened a hot dog stand called Bells Drive-In in San Bernardino, California in 1946 when he was 23 years old Started selling Taco under the name of Taco-Tia and El Tacos Bell sold the El Tacos to his partner and built the first Taco Bell in Downey

1952-1961 1962

Company History
Time Line 1964 Discovery Kermit Becky, a former Los Angeles police officer, bought the first Taco Bell franchise from Glen Bell in 1964 100th restaurant opened at 400 South Brookhurst in Anaheim Taco Bell went public with 325 restaurants PepsiCo purchased Taco Bell from Glen Bell

1967 1970 1978

Taco Bell outside United States

Australia Canada India Mexico

China
Cyprus Greece

Philippines
Poland Singapore

Iceland
South Korea

Spain
United Kingdom

Problem Recognition
Time Frame 1: Early 19802 Production process was Labour intensive as Labour availability was abundant. It was a low-risk business as low level of technology was used.

Time frame 1- Early 1980s

It was a Assembled to order process. Wait time was 105 seconds. Inconsistances in raw materials and quantity of cooking and preparation work required, So it resulted in time wastage.

Time Frame 1- Early 1980s

Time Frame 1: Early 1980s

No drive through windows Assembly portion of the kitchen consisted of one line containing prepared food at which crew members and management stood, assembling menu items and orders Hence, we can say operational practices were focusing on processes rather then customers

Time Frame 1: Early 1980s

No business Vision of the company. They were following traditional measures of assuming what customers want No stress were given on locations, advertising and product innovations. No clarity whether they are in fast food business or Mexican food business

Time Frame 1:Early 1980s

Reengineering: Time Frame 2-(19831988)

Time Frame 2-(1983-1988)

Growth to an average of 249 stores per year which were earlier 100 units per year. New Menu items were created

Time Frame 2-(1983-1988)

Problem Recognition during Time Frame 2-(1983-1988)

Drawbacks of Taco Bell during second time Frame:
Management Information system were non existence. Computers were pretty much just for executives

Reengineering- Time Frame 3(19891991)

Focus from process oriented changed to customer oriented Organization

Time Frame-3(1989-1991)
Company standard for customer service was identified as FACT

Time Frame-3(1989-1991)
Introduction of Value Menu Origin of New Taco Bell

Time Frame-3(1989-1991)

Time Frame-3(1989-1991)

Time Frame-3(1989-1991)
In 1990, Taco Bell Introduced Speed of service to put the fast back in fast food Speed of service program reduced waiting time for customers in restaurants. Reformulating certain recipes and developing a heated holding area.

Benefits of Speed of Service

1.Taco Bell was able to 60% of its menu items ready for immediate sale 2. Increase in Peak hour transaction capacity by 54% 3.Decrease Customer Waiting time by 71%-to 30 seconds

Taco
Taco, Total Automation of Company operations , was an MIS project to place a computer, networked to headquarters, in every store.

Taco
With the help of TACO, RM can do: 1.Better labor Scheduling 2.Better product production planning

Automation of POS
POS is Taco Bell vision to have network at every store

The new Taco Bell

With the removal of layers of management and frequent supervisor of restaurants , new control were require to ensure adherence to standards. They adopted three things: A 1800 toll free number where people can complain Mystery shoppers Marketing surveys

Results
Significant increase in profitability and sales Turnover declined marginally from 1989 to 1991

Results
First food chain to focus on value for the customer.

Recommendations
They can improve on: Product planning Location planning Capacity planning Job design Supply chain management Maintenance Quality management

Made by:

Amit Bharara- PGDM 11 02 B40 Devina Misra-PGDM 11 02 B48 Gaurav Rampall-PGDM 11 02 B50 Gurjot Singh-PGDM 11 02 B52 Kamal Syal- PGDM 11 02 B54 Ramandeep Singh-PGDM 11 02 B64