Ending Soon! Save 33% on All Access

Taco Bell Is Having a 'Go Big or Go Home' Moment The company recently announced its plans to expand from 6,500 to 9,000 restaurants globally, and to reach $15 billion in sales by 2022.

By Claire Zulkey

This story appears in the January 2018 issue of Entrepreneur. Subscribe »

Courtesy of Taco Bell

Taco Bell is having a "go big or go home" moment -- announcing this year that it plans to expand from 6,500 to 9,000 restaurants globally, and to reach $15 billion in sales by 2022. The focus is on adding restaurants in Brazil, Canada, China and India, but it will also press harder in pedestrian-heavy urban markets in the U.S. with its new Cantina-style restaurants. (That's basically Taco Bell, but with booze on the menu as well -- including, of course, spiked slushies.)

Related: 20 Facts You Probably Didn't Know About Taco Bell

This heavy push, and the enthusiasm it has attracted from customers and franchisees, has launched America's favorite Mexican joint back into our top 10 for the first time since 2003. But to CEO Brian Niccol, these ambitious goals are merely an extension of the fast-moving attitude Taco Bell has been pushing for years. "As the restaurant continues to add menu items like the Naked Chicken Chalupas and Power Bowls, franchisees have embraced that what's successful in the past won't necessarily be so in the future," Niccol says. "They are very passionate about learning, new ideas and connecting with youth."

Those creative menu items aren't just for jokes or PR, either. They drive big-time sales. In 2012, when the company adopted its "Live más" tagline and launched the Doritos Locos Taco, its average sales per unit were $1.3 million. Many a wacky-food creation later, including this year's fried-egg-for-a-taco-shell Naked Egg Taco, that number is more like $1.6 million -- with 10 percent of stores surpassing $2 million. In 2016, even though it is the smallest of the Yum! Brands stores, Taco Bell was the most profitable among them -- with a GAAP operating margin of 11 percent, compared with 7 percent for Pizza Hut and 5 percent for KFC.

Related: 5 Affordable Franchises You Can Start for Less Than $10,000

The brand also stays au courant with profitable collaborations in music, sports and fashion (including a cheeky clothing line with Forever 21 that includes shirts that say things like fire! don't wait up and too much sauce). And it has increased its focus on food quality, which has played well in the media; the site Food Beast, for example, ran a story headlined "Taco Bell Has Low Key Become One of America's Healthiest Fast Food Chains." All of this gives Taco Bell many paths forward, and many ways to excite new franchisees around the world. "It's important for a brand to stay multidimensional," Niccol says, "and we've done it in a way that stays true to the brand."

For more on franchises, check out 2018's Franchise 500 list.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Career

Is Consumer Services a Good Career Path for 2024? Here's the Verdict

Consumer services is a broad field with a variety of benefits and drawbacks. Here's what you should consider before choosing it as a career path.

Business News

'Creators Left So Much Money on the Table': Kickstarter's CEO Reveals the Story Behind the Company's Biggest Changes in 15 Years

In an interview with Entrepreneur, Kickstarter CEO Everette Taylor explains the decision-making behind the changes, how he approaches leading Kickstarter, and his advice for future CEOs.

Business Models

How to Become an AI-Centric Business (and Why It's Crucial for Long-Term Success)

Learn the essential steps to integrate AI at the core of your operations and stay competitive in an ever-evolving landscape.