Taco Bell
When John Martin, (CEO) joined Taco Bell 1983, he questioned whether Taco Bell understood the fast food business. In 1982, the company had 40% of the Mexican fast food market and generated about $700 million in revenues, but had negligible market share in the entire fast food market. The company did not understand this concept of their business and needed to re-establish themselves within the industry to gain market share.
Problems:
Some of the main problems that Taco Bell faced which did not allow it to compete effectively with its competitors were:
Current labor was intensive
The company used low levels of technology ex. Orders were placed on manual plastic board
Lack of drive-through windows
Required employees to create large amounts of operational paperwork as part of their role.
The Taco Bell employee turnover rate measured at 220%
All of these problems created significant errors, provided no data for management analysis and forecasting,......
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