Brand Overview
August 2009
Greg Creed
President and
Chi f Concept
Chief C t Officer
Offi
Clear Brand Position
The Bold Choice in QSR!
Our Tagline:
Our Opportunity
Turn Mexican QSR segment leadership…
M i
Mexican QSR S
Sales
l = $10B+
Balance
Baja Fresh
Taco Bell
Del Taco
Chipotle
Our Opportunity
…of a smaller segment of the QSR category…
T t l QSR S
Total Sales
l = $200B+
$200B
Pizza Mexican QSR Sales = $10B+
Burgers Balance
Sandwich
Baja Fresh
Chicken Del Taco
Taco Bell
Chipotle
Mexican
Balance
Our Opportunity
…into clear #2 QSR share brand!
QSR Market Share Rankings – YE 2008
#1
#2
#3
#4
#5
Source: NPD Crest
Our Opportunity
…into clear #2 QSR share brand!
QSR Market Share Rankings – YEFuture
2008
#1
#2
Our Strategy
Operations
Restaurant Excellence
& Differentiated
Service Paradigm
Technology/
Infrastructure
Assets Marketing
New Builds BYA &
& Asset Refresh New Sales Layers
Enablers: ABR and People
Organization Structure Established
to Effectively Execute Strategy
Best Place to . . .
Work Eat Own
Family Reliable Excellent
Environment Experiences
p Returns
Ops Focus
Focus—Flagship
Flagship Restaurants & Margin Improvement
New Franchise Business Management Team
Separate Leaders for BYA & New Strategic Initiatives
Strong Culture Complemented
by ABR & Recognition
Bold Choice Attitude is Pervasive
ABR Cascaded Through RGMs and
Operations Franchise Owners
Keep Building Iconic Recognition
Technology/ Culture
Infrastructure
Assets Marketing
E bl ABR andd People
Enablers: P l
Right Strategy
Right Structure
Right Culture
To Achieve Our
Strategic Opportunity
David Ovens
Chief Marketing Officer
Operations
Restaurant Excellence
& Differentiated
Service Paradigm
Technology/
Infrastructure
Assets Marketing
New Builds BYA &
& Asset Refresh New Sales Layers
Enablers ABR and People
Enablers:
3 Vs is Core Strategic Foundation
Price Value
Core Brand Attribute
Everyday Low Prices
Abundant Value
Amount of Food for the
Money
Quality Value
Quality of Food for the
Money
Protein is the “Hero”
Layered Calendar Enables Execution
W4.5 W5 W6 W7
Primary/
Secondary
Abundant
Value
Merchandising
TV
Specialty
p y
Beverages
Late Night
g
Value Leader With Everyday Low
Prices
Low Prices Value for the Money
8.0 QY
8.0 Y
Y
QY 7.5
7.5
Y
Y
7.0
7.0
6.5
65
6.5 Y
6.0
6.0
5.5
5.5
5.0
5.0
Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09
Q3'07
Q3 07 Q4'07
Q4 07 Q1'08
Q1 08 Q2'08
Q2 08 Q3'08
Q3 08 Q4'08
Q4 08 Q1'09
Q1 09 Q2'09
Q2 09
7.5 7.4 7.4 7.4 7.5 7.5 7.6 7.6 7.3 7.2 7.2 7.1 7.3 7.4 7.4 7.3
Building New
Sales
Layers!!
Frutista Freeze
S
Summer ‘08 H lid
Holidays ‘08 S i ‘09
Spring S
Summer ‘09
“Drive Thru Diet”
“Make Any Night Taco Night”
Project Oasis
From To
“All I get is a soda” REFRESH “It’s a Beverage Destination”
“Satisfying
“S ti f i g snacks
k for
f my
“Lunch, Dinner or Late Night ” REFUEL clockless lifestyle”
“I come to Taco Bell as
“I’d rather eat in my car” RECONNECT much for the experience as
the food”
21
Pulling Everything Together
Expanded Dayparts
Oasis
New Prod Layers
Better for You Drive
Drive -Thru Diet Target
#2 Q
QSR Brand
Beverages
BYA
2008 2009 2010 2011 2012 2013
Anna Ohki
Chief Food Innovation Officer
Products You’ll Sample Today
Price Value Abundant Value Quality Value
Frutista Freeze Drive-thru Diet
Eliminating Nutritional Barriers and
Elevating
g Quality
Q y Perceptions
p
Reduced Sodium
20% Sodium
Fat Reduction
Cheese
(in progress) (in progress)
Reduced Menu Board
Fat Sour Labeling
Cream
(as required)
(completed)
Eliminating Nutritional Barriers and
Elevating
g Quality
Q y Perceptions
p
Reduced Sodium
20% Sodium
Fat Reduction
Cheese
(in progress) (in progress)
Reduced Menu Board
Fat Sour Labeling
Cream
(as required)
(completed)
Eliminating Nutritional Barriers and
Elevating
g Quality
y Perceptions
p
Sodium
R d ti
Reduction
Across
Menu
Sodium
Reduction
g
(in progress)
3 Years
Migrate Consumer Flavor
Expectations for Salt
Greg Creed
President and
Chi f Concept
Chief C t Officer
Offi
Operations
Operations
Flagship Restaurants
& Differentiated Service
Paradigm
di
Technology/
I f t t
Infrastructure
Assets Marketing
Enablers: ABR and People
‘09 Productivity and ’10 Pipeline
are Step Change Results
Productivity Pipeline (% Margin) 2009 Productivity
1.4%
Management Complement
1.1%
Labor Actions
1 0%
1.0% Product Margin Impact
0.8%
0.8% 0.7%
Drink Size/Packaging
0.8%
Opportunity
0.4% 0.5% Energy
'02 '03 '04 '05 '06 '07 '08 '09 F '10
Equipment
E i t Solutions
S l ti Enable
E bl a Key
K Part
P t off the
th Step
St Change
Ch
Automated Self-Filtering High Capacity
Safes Fryer Re-Thermailzer
Delivering Margins AND Improving the
Customer Experience
p
CBCC Average Score Recommend a Friend
87%
93%
86%
92%
85%
91%
84%
90%
83% 89%
82% 88%
81% 87%
P8 P9 P10 P11 P12 P13 P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 P1 P2 P3 P4 P5 P6 P7
Prior Year Rolling 13 Prior Year Rolling 13
0.21 Complaint Contacts per/1000 Trans
0
0.18
18
0.15
0.12
P8 P9 P10 P11 P12 P13 P1 P2 P3 P4 P5 P6 P7
2007-2008 2008 -2009
American Customer Satisfaction Index
Validates Internal Measures
75
70
65
60
55
NM
50
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: The American Customer Satisfaction Index: Q1 2009
Future Back Vision—Acting on the
Voice of the Customer
Importance “The Best Drive-Thru in
America ’08”
Order Accuracy 99% (Top 25 QSR Brands)
Customer Service 94% Year Speed Accuracy
Speaker Clarity 93% 2008 4th 13th
Menuboard Clarity 92%
2007 3rd 13th
Drive‐Thru Appearance 90%
2006 3rd 8th
Speed of Service 84%
Order Confirmation 79% 2005 3rd 16th
Future Back Vision—Acting on the
Voice of the Customer
Importance “The Best Drive-Thru in
America ’08”
Order Accuracy 99% (Top 25 QSR Brands)
Customer Service 94% Year Speed Accuracy
Speaker Clarity 93% 2008 4th 13th
Menuboard Clarity 92%
2007 3rd 13th
Drive‐Thru Appearance 90%
2006 3rd 8th
Speed of Service 84%
Order Confirmation 79% 2005 3rd 16th
Melissa Lora
Chief Financial Officer
Operations
Restaurant Excellence
& Differentiated
Service Paradigm
Technology/
Infrastructure
Assets Marketing
New Builds BYA &
& Asset Refresh New Sales Layers
Enablers ABR and People
Enablers:
New Unit Development Continues
System Net New Unit Growth
2006A – 2010F
Net New
1.9%
1.6%
1.4%
1 1%
1.1% 1 1%
1.1%
2006A 2007A 2008A 2009F 2010F
Existing Asset Base the Strateg
Company Franchise
Other
Holdover Bold Collection 42% 23%
B ld
Bold
Functional Collection Functional 52% 54%
Holdover 5% 11%
Other 1% 12%
Existing Portfolio, P2 2009
Step 2 Bold is Breakthrough Strategy
Established to Provide Flexibility
y
Flex 2 Five Next 2 Ten
Flex 2 Five/Next 2 Ten
Equipment
Interior Drive-thru of the Future
The Bold Choice Collection In Every
DMA
Re-Model New / Replace
Flex 2 Five Ty07 Prototype
Next 2 Ten
M 2 Bold
Key Takeaways
Right Strategy,
Strategy Structure
Structure, & Culture to Grow
Share in QSR
Building on Value Leadership and
Developing New Sales Layers
Operations
O i Delivering
D li i Margins
M i and d
Improving the Service Experience
Net New Unit Growth Continues and
Continued Upgrading of Existing Assets
