How Quickly Will Taco Bell Recover After Cyclospora?

Taco Bell executives believe the brand will recover quickly from the recent Cyclospora outbreak, arguing that the sales impact is already beginning to fade. According to Yum Brands' second-quarter earnings call, Taco Bell experienced a 2% decline in same-store sales early in the third quarter after the chain temporarily removed shredded lettuce from restaurants linked to the outbreak. 

The company says its response centered on acting quickly to remove potentially contaminated lettuce, while also communicating with customers and reinforcing consumer confidence. Yum Brands CEO Chris Turner said he is confident social sentiment toward Taco Bell has already rebounded, with some brand perception metrics now “exceeding pre-outbreak levels.” 

Executives said the broader outbreak, which affected thousands of people and involved several produce sources, helped show consumers that Taco Bell was not the only company involved.

For Taco Bell franchisees, the company's outlook is encouraging. While operators undoubtedly felt the short-term impact of reduced traffic during the height of the outbreak, Yum Brands believes the brand's strong customer loyalty, digital ecosystem, marketing capabilities and rapid operational response position the system for a relatively swift recovery. The situation also underscores the importance of having established crisis management protocols, transparent communication and diversified traffic drivers that allow franchisees to rebound quickly when unexpected supply chain or food safety issues arise.

Read the original CNBC article here.

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