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September 1, 2026

Case Study: Taco Bell’s Marketing Strategy

Taco Bell recovering from cyclospora outbreak by Jaimie Siegle | Advertising Systems Inc

While I’m no longer the frequent flyer of the Taco Bell drive-thru as I was in my college days (hello, 99-cent cheesy bean and rice burrito), I suppose my fix comes from the delight I get from Taco Bell’s digital and TV marketing strategy as of late.

Over the last several years, Taco Bell’s popularity has continued to grow, as has its revenue. And personally, I’ve been loving the brand’s digital persona. With a fluent understanding of online culture (case in point: its contributions to Love Island discourse), it has built a solid social media presence that has converted Gen Z and Millennials alike.

Taco Bell’s Rise in Popularity

On TV, Taco Bell’s ad spots promoting its Luxe value boxes at $5, $7, and $10 price points, was a response to the general consensus that rising prices have deemed fast food a “luxury.” It continued to roll out similar Luxe campaigns through 2026, and tapped celebrities like Tony Hawk, Doja Cat, Kevin Hart, and Lebron James.

For parent company Yum! Brands, Taco Bell has been its golden goose, with “nearly six consecutive years of sales growth and generat[ing] nearly half of the company’s operating profit in 2025,” according to Reuters.

Taco Bell’s Q1 and Q2 earnings for individual store sales averaged +8% and +7% respectively, ahead of Wall Street predictions.

Taco Bell and the Cyclospora Outbreak

On July 16, a nationwide parasitic outbreak was traced back to iceberg lettuce from Taylor Farms, lettuce supplier of Taco Bell. The next day, store sales were down -18% to -31%, leading me to wonder how Taco Bell’s marketing team would handle such a PR crisis.

As it turns out, they did well. First, they removed Taylor Farms’ produce from all stores, and soon after offered deals to customers and app users on lettuce-free items. They also published a Thank You post on TikTok and Instagram, with such genuine sentiment that it’s become one of Taco Bell’s most engaged posts ever.

As of July 27, its Q3 earnings were around -2% — its first negative quarter since 2020, per National Restaurant News.

The lesson here (aside from the fact that Taco Bell’s marketing/PR team deserves a raise), is to never underestimate 1) the power of brand loyalty, which can help mitigate sales numbers and negative public image; and 2) the ways in which bad PR can always be transmuted into good PR, especially when a brand can maintain clear communication and transparency with its customer base.

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