Taco Bell Franchisee Advisors want advertising change

Steve’s breakdown: The letter below went out from the franchisee advisory council (FRANMAC), which is set up to provide advice to franchisor Taco Bell, to all Taco Bell restaurant owners. Check out items #2 & #13 in bold. I’m not saying this advertising and/or PR account is going into review but if any organization can force Taco Bell to do just that, this is the one.

And here’s a message to Advertising Age magazine. There are only a few days left when you can find your next story from the posts on The Ratti Report. Cherish them.

IRVINE, CA:

Dear Franchisees:

As a follow-up to the message sent by Tom Cook earlier, following is further explanation of FRANMAC positions to better assist you in dialogue with Taco Bell.  Once again, we will not make progress unless we are heard with one common voice.

  1. Until such time that sales return to 2010 levels plus an additional amount to adjust for 2011 commodities, allowable impact should be reduced to 5%, and all mandates should be delayed.
  2. A core responsibility of our advertising agency is to produce creative that effectively promotes our menu.  Ads in the past 12 to 18 months have been largely ineffective and we believe that an agency review should take place.  Taco Bell Corporate, in conjunction with FRANMAC should immediately undertake an agency review.  Without a doubt, we will learn new things, obtain fresh ideas, and be further ahead, even if we decide to stay with the incumbent agency.
  3. We have either a real or perceived quality problem at Taco Bell.  Until such time that we reinvigorate our base business, we should redeploy the resources that are utilized on HMR, Oasis, and Breakfast to focus on our quality perception and fixing our core.
  4. The value proposition as currently being executed is not driving transactions, and squeezing margins beyond a reasonable tolerance.
  5. There is a lack of balance between QV/AV/PV on our calendar.
  6. The Kronos Contract continues to have clauses that are different for company restaurants versus franchise restaurants.  Additionally, the company has a unilateral ability to change the contract after we sign.  That is far from your promise of fairness and transparency.  Why would you negotiate a lopsided contract.
  7. The Xpient Software is not complete, not integrated with Sabretooth and Prism, and does not allow for franchisee central file maintenance.
  8. We do not understand the unwillingness to allow DMA’s to run the Beef Quality spot while senior management says we just have to wait until we start running value again.  The business will turn around then.  Well, it didn’t.  Now what?
  9. Why is there an unwillingness to find a third vendor for broadband?
  10. All mandates must have an adequate return on investment.
  11. There continues to be an ongoing lack of alignment around the Refresh program.
  12. Franchisees believe that TBC has reacted very slowly on the West Coast vs. Balance of Country situation.
  13. There has been a lack of PR efforts in light of the recent Beef Lawsuit.
  14. We believe there is a need to cut 20-25% out of the cost of a new building to make the economic model work.

We believe there is a need to cut 20-25% out of the cost of a new building to make the economic model work.

TacoBell Town HallCall

Source: http://www.bluemaumau.org

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