Taco Bell rolls out deals after cyclospora outbreak dents sales
Popular fast-food chain Taco Bell is trying to overcome bad publicity and slumping sales linked to the recent cyclospora outbreak by offering discounts and promoting menu items without lettuce.
Deals to win back customers
This week, Taco Bell sold Mexican Pizzas for $1 to bring customers back.
Some customers reported severe diarrhea and stomach cramps after eating at Taco Bell during the recent nationwide cyclospora outbreak. Federal health officials have linked the outbreak to Taco Bell’s lettuce supplier, Taylor Farms.
The Wall Street Journal reported Taco Bell removed lettuce supplied by Taylor Farms within 72 hours after health officials warned it could be linked to illnesses caused by the parasite.
As of July 24, the CDC reported at least 1,947 confirmed cyclospora cases nationwide since the outbreak began in May.
In Michigan, the apparent epicenter of the nine-state outbreak, health officials said they have received 9,860 reports of diarrheal illness.
On July 17, Taylor Farms recalled iceberg lettuce from central Mexico because it could be contaminated with cyclospora.
The CDC echoed the recall, advising consumers: “Do not eat recalled iceberg lettuce from Taylor Farms de Mexico.”
Sales drop
Yum Brands said Taco Bell’s same-store sales fell 2% from mid-June through July 27, with the biggest decline occurring the weekend of July 18.
CEO Chris Turner said Thursday, “The brand has seen a meaningful near-term sales impact.“
The decline followed a strong second quarter, when Taco Bell posted 7% same-store sales growth before the cyclospora outbreak drew widespread national attention.
Other deals
Turner said Taco Bell’s online reputation has begun to recover, and its weekly “Tuesday Drops” promotions are performing well.
In addition to the Mexican Pizza promotion, Taco Bell offered $1 Enchiritos on Tuesday, down from the usual $4. The chain is also selling steak burritos for $3, according to its website.
Yum said the promotions, along with the outbreak-related sales decline, have weighed on profit margins.
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Ella Rae Greene, Editor In Chief
