How Taco Bell Crippled KFC & Pizza Hut

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Taco Bell is an extraordinary outlier by every measure. It’s a fast food chain that boasts a deeply passionate fanbase, enjoys a reputation for reliability, speed, and accuracy, and when it comes to business - Taco Bell has grown at such a breakneck pace over the past 20 years that it outperforms giants like McDonald’s, Burger King, and KFC in per-store earnings.
The Mexican chain is so popular that it’s one of the few companies whose per-store earnings have stayed ahead of inflation. Remarkably, Taco Bell boasts some of the highest ever profit margins ever reported in not just fast food, but also in the restaurant industry. Taco Bell’s renaissance is a miracle in an era where fast food chains all follow the same cookie-cutter playbook of cost-cutting and international expansion to cover up domestic decline like KFC, McDonald’s, and Starbucks.
Business is a zero-sum game where every decision is connected, every action has a cause and effect, and the rise of one brand contributes to the fall of another. In this episode, we’ll cover the rise of Taco Bell, their strategy that’s made them so successful, and why Taco Bell is the missing puzzle piece behind the downfall of KFC and Pizza Hut and how their struggles in fried chicken and pizza have molded Taco Bell to what it is today, for better and for worse.
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0:00 Think Outside the Bun
1:36 Sponsor Break (Factor Meals)
4:08 Geopolitical Liberation
20:25 Non-Replicable Blueprint
31:24 The Goose from Mexico
41:18 Sponsor Break (Moomoo)