Taco Bell, KFC Rethink Menus, Colonel Ads

Brandweek,  May 1, 2000  by Theresa Howard

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Taco Bell and KFC are looking to address soft sales with product news that kicks off next week at the Bell and in June for sister KFC with its first limited-time offering in its still-new sandwich line.

Taking a more competitive stance against McDonald's and Wendy's, which have successfully integrated chicken sandwiches onto menus, KFC will bow the Honey BBQ Crunch Melt to compete with the burger rivals ongoing limited menu approach.

Sales of the sandwiches, launched last September, have been exceeding projections, however, same-store sales for company-owned restaurants were down 3% for the first quarter.

While franchisees said they would continue to support the line, they stressed that the chain had to balance the lunch-skewing line with more core entrees. Nonetheless, KFC is slated to launch the Original Recipe sandwich with a taste superiority claim later this summer.

In a move to combat the burger chains more directly sources said the company may also be rethinking how its animated Colonel icon is used in ads. While the treatment introduced in 1998 has been "tremendous" in raising awareness, according to one franchisee, the character also suffers from a high "annoyance" factor.

"He is our major brand icon and we have taken liberties with him," the source said. "We have to be careful with it." Young & Rubicam, N.Y., handles KFC's account. The current crop of ads down-play the Colonel, with a woman offering a voiceover and the white-suited cartoon character appearing in just a cameo.

Meanwhile, Taco Bell this week will highlight its "fried fresh daily" nacho chips with the launch of an abundant sized dish--Mucho Grande Nachos, priced at around $3.50. The entry combines more dinner-like ingredients including green onions, jalapenos and olives.

National ad support is slated to break May 5 and will continue Taco Bell's focus on food and price under the tag Great Taste. Loco Value. Only at Taco Bell."

Taco Bell posted "slightly positive" same-store sales during the first quarter, with transactions up for the first time since 1998. Rounding out the Tricon Restaurants family Pizza Hut, posted a 2% sales increase.

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