The sluggish sales in the U.S. have prompted Yum! and other international food chains, to focus more on emerging markets, such as India, which still remains untapped fully. The company remains confident about the success of Mexican-inspired quick-service restaurant brand, whose menu features tacos, burritos, nachos, quesadillas and Crunchwraps with menu pricing starting as low as 35 cents.
Taco Bell faces competition in USA from Baja Fresh, Chipotle,Taco Johns,Taco Bell,Taco Cabana,Taco time, Del Taco. India is a virgin market for Mexican Food. With the saturation of the U.S. market and the recession taking its toll on restaurants, the industry is concentrating more on the overseas market. Apart from India, Yum! operates Taco Bell restaurants in Canada, Puerto Rico, Guatemala, Costa Rica, Panama, Dominican Republic, Guam, Iceland, Philippines, Dubai, Spain and Cyprus. As of fiscal 2009, the company operated over 250 Taco Bell restaurants outside the U.S.
Louisville, Kentucky-based company, Yum!, plans to accelerate its expansion in India. The company, which currently operates about 158 Pizza Hut restaurants in 34 cities and 72 KFC outlets in 13 cities in India, plans to increase its total restaurant count to 1,000 by 2015.
The Indian market has been virtually recession-proof providing ample growth opportunities. Yum! plans to tap India's organized food and beverage market, which is growing rapidly. Yum!’s restaurants in India, which are managed by Niren Chaudhary, faces stiff competition from other fast-food chains such as McDonald’s Corp. (MCD) and Domino’s Pizza Inc. (DPZ).
Taco Bell India Strategy
- 100 Taco Bells by 2015
- Price Range between Rs. 18 and Rs. 79
- Unlimited Pepsi Refills at Rs. 35.
- 22 Mexican Food Varieties, 11 Vegetarian and 11 Non Vegetarian
- Will offer Mexican fast food like tacos, burritos and quesdillos, apart from Nachos
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