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Company nicknames: Taco Bell, a circle of Taco Hell?

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This post is one in a series on prominent company nicknames. See all 25, and share your thoughts and memories about Taco Hell below in the comments.

Homer Simpson, when naming his first child, eliminated many monikers that he feared would invite rhyming nicknames (Screwy Louie, etc.) before choosing Bart (D'oh!). Combine this human propensity, the heat of Mexican food, and a soupçon of suspicion that low prices equal lower-quality ingredients, and the nickname for Taco Bell, Taco Hell, seems inevitable.

The YUM! Brands (NYSE: YUM) chain was born in the same town and at the same time as Mickey D's -- San Bernardino, California. There Glen Bell began selling 19-cent tacos, made possible by his innovation, using pre-fried taco shells. His restaurants, then know as Taco Tia, spread throughout southern California. In Redlands, the football L.A. Rams players who trained nearby began flocking to Bell's shop, and two of them became his first franchisees. In 1962, Bell sold out his share of the existing restaurants, now called El Tacos, and started Taco Bell. He took the company public in 1966 and sold his holdings to PepsiCo (NYSE: PEP) in 1975.

Shortly thereafter, the chain went international. It continued to grow thanks in part to savvy marketing, including one promotion offering a free taco to everyone in the U.S. if the Russian Mir space station, on its fall from orbit, were to hit a floating taco target in the Pacific. (It didn't.)

Not all publicity was favorable, however. A campaign featuring a Chihuahua was perceived by some as tainted with racism, (and left me puzzled why a restaurant would want me to think their food was appealing to dogs), while a video showing rats swarming over a NYC Taco Bell/KFC kitchen put some off their feed.

Nonetheless, Taco Bell retains a 54% market share with 5,580 outlets in the U.S. and 240 around the world. The company is currently working to reduce the percentage of company-owned stores in the U.S. (23%) by refranchising. The past year was not kind to the chain, however, as same-store sales declined 5%, and the rise in the cost of food supplies will challenge it to contain prices.

Nonetheless, when I hear my friends use the term, it is always in the context of "Want to grab some lunch at Taco Hell?" The nickname implies acceptance that the food quality will be less than gourmet, but a cost worth the concession. Unlike HoJo, the moniker is not one the company is likely to embrace, but we all need to have a fire lit under us from time to time, right?

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Last updated: November 24, 2009: 01:33 PM

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