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  • Taco Bell is huge in the U.S.

  • The American Mexican fast food chain is one of America's top

  • five fast food companies by sales.

  • And over the last decade it's added another 1300 stores.

  • While it had tremendous success at home Taco Bell has had a lot of trouble taking off abroad.

  • Taco Bell has over 400international locations which is well below that of its rivals.

  • And having a whole lot of trouble finding a following in one

  • the world's fastest growing cities, Dubai.

  • It has the highest concentration of restaurants in the world

  • and the population generally loves American brands.

  • But Taco Bell called it quits in Dubai after just four years

  • In 2008, Taco Bell was killing it in the United States.

  • Its profits were higher than ever and it was Yum Brands

  • second most profitable chain in the U.S.

  • So its parent company Yum Brands decided to test out the Mexican food chain in Dubai.

  • In November of 2008, Taco Bell opened its first Middle East location in the Dubai Mall.

  • Keep in mind, in Dubai shopping malls are a major part of the Emirati culture.

  • With temperatures hitting 120 degrees Fahrenheit in the

  • summer, it's not unusual for Emirati to spend hours trolling the malls.

  • And these aren't your typical malls.

  • Malls in Dubai have indoor ski slopes, shark tanks and Olympic sized ice rinks.

  • The Dubai Mall spans over 5.9 million square feet with over

  • 1300 stores and more than 200 food and beverage options for locals and tourists.

  • The mall alone contributed 5 percent of Dubai's GDP in 2015.

  • At the time Taco Bell entered the city the Dubai Mall was

  • one of the largest shopping malls in the world.

  • So Taco Bell wasn't a prime location.

  • According to the franchise owner Taco Bell's initial launch

  • showed promising results for the company.

  • The owner said that the initial success was behind its

  • reason to start expanding to other locations in the UAE in 2009.

  • Taco Bell in Dubai reportedly adjusted its menu to be halal

  • certified so it can adhere to Islamic dietary laws.

  • By 2012 talk about how expanded its footprint to two other

  • of Dubai's mega malls but Taco Bell's franchise owner

  • Americana group made the call to exit Dubai in early 2012.

  • Taco Bell did well in the Dubai Mall. They had one location in the Dubai Mall that

  • was pretty well and it was a pretty amazing location.

  • The Dubai Mall is quite a touristy mall.

  • And their other locations

  • didn't quite do so well and there are multiple reasons for that.

  • I think the quality isn't quite what the people expected.

  • And I think the actual owners wanted more than just

  • one successful site they wanted multiple.

  • I mean they just struggled to deliver that.

  • During its time in Dubai, Taco Bell's parent company Yum

  • Brands was the number one fast food company in the UAE.

  • And KFC and Pizza Hut top the UAE brand ranking.

  • In Dubai, there were 31 KFC stores and 20 pizza stores.

  • So why is it that Taco Bell couldn't match the same success

  • of its fellow Yum Brand companies?

  • First, it's partly to do with local tastebuds.

  • Emirati don't have much of an appetite for Mexican food.

  • During Taco Bell's time in Dubai, out of all of the money

  • the fast food industry made in the UAE, the Latin-American

  • inspired food category came in dead last.

  • On average latin foods accounted for just 0.14 percent of

  • all fast food sales in the UAE each year between 2009 and 2013.

  • Meanwhile the burger category accounted for nearly 30

  • percent of retail sales.

  • Secondly, Taco Bell also lack the international brand

  • recognition of its sister companies.

  • KFC and Pizza Hut already had stores around the world long

  • before Taco Bell's first attempt to expand abroad.

  • KFC launched internationally in 1953 in Canada and by 1971

  • KFC was in 48 countries.

  • While pizza has been a global brand since 1968 and

  • specifically in the UAE since 1979 but Taco Bell its first

  • ever expansion outside of the U.S. began in 1979.

  • Its global expansion has been slow going and not always successful.

  • It's tried and failed in several countries from Singapore to Mexico.

  • As of 2019, Taco Bell has over 400 international stores

  • which pales by comparison with its sister companies.

  • KFC has nearly 18000 stores and Pizza Hut has nearly 9000.

  • According the Gulf Business back in 2012. The former Yum

  • Brands CEO said this about Taco Bell's international troubles.

  • What we do with Pizza Hut and KFC is to bring a unique image

  • to a known quantity. Whereas with Taco Bell you have a

  • unique brand and an unfamiliar food category. So it's a

  • little bit harder to establish Taco Bell than KFC or Pizza Hut.

  • Another possible factor playing against Taco Bell in Dubai,

  • its physical store layout.

  • Even though Latin American foods ranked last in the UAE fast

  • food sales Mexican-American sit down chain Chili's has been

  • in the UAE since 1997.

  • It's added at least two stores every year since entering the country.

  • In fact full service restaurants like Chili's performed

  • better than fast food outlets during the same time Taco Bell was in Dubai.

  • Full service restaurants had a 30 percent hold over the total market.

  • So why did full service restaurants perform better than fast food chains like Taco Bell?

  • It has a lot to do with culture.

  • Emirati consumers consider going out not merely as a

  • convenience but as a social event with family and friends.

  • I think Chili's has quite a wide menu they have more than just Mexican.

  • It caters for the

  • family in the malls and at a different price point, where its much more about quantity

  • Local chain Taqado is another popular Mexican food option in Dubai.

  • They entered the market the year after Taco Bell left and it

  • now has 13 locations across Dubai offering everything from

  • burritos to tacos to even breakfast.

  • But taco bell hasn't entirely given up in the Middle East.

  • The fast food chain has actually taken off in Kuwait. Its

  • first location opened in 2010 and the Gulf nation has seven

  • Taco Bell locations as of 2019.

  • A part of his success can be attributed to its menu and

  • specialized campaign directed towards locals.

  • Its restaurants there are 100 percent halal certified.

  • And the company has a campaign directed towards locals

  • called "Aco Taco" which translates to do you have tacos.

  • The campaign capitalized on the hype that Taco Bell created

  • before entering Kuwait.

  • CNBC reached out to both Yum Brands and Americana group Taco

  • Bell's franchise partner in the UAE. But neither respond to

  • questions about why they pulled Taco Bell out of Dubai.

  • But Taco Bell did tell CNBC that the company is always

  • looking for possibilities to expand into different Middle

  • Eastern markets with the right partners.

  • As of 2019, there are nearly 6500 Taco Bell's in the U.S.

  • and over 400 stores across 27 countries and the brand is

  • planning a massive expansion overseas.

  • Taco Bell is promising to step up international growth by

  • reaching 500 units by the end of 2019 and 1000 units by 2022.

  • Given Taco Bell's success in Kuwait and the Middle East

  • status as a booming market for fast food it remains to be

  • seen whether Taco Bell was stage a comeback.

Taco Bell is huge in the U.S.

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タコベルがドバイで失敗した理由 (Why Taco Bell Failed In Dubai)

  • 36 4
    PENG に公開 2021 年 01 月 14 日
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