Taco Bell Franchisees To Get $60 Million
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Louisville, Kentucky-Tricon Global Restaurants Inc. saidits U.S. Taco Bell restaurant franchisees would receive $60 millionfor lost business resulting from confusion over geneticallymodified corn in taco shells.
Tricon said that FRANMAC, an association representing thefranchisees, and Tricon reached an agreement under which thesuppliers of its taco shells would pay the $60 million to thefranchisees. The payment will help the franchisees partially offsetlost business.
Tricon has said that Taco Bell restaurants lost business amidcustomer concern after taco shells containing genetically modifiedStarLink corn were removed from store shelves. The shells, made byKraft Foods Inc., were sold under the Taco Bell name. But thoseshells were not the same as those used at Taco Bellrestaurants.
As part of their agreement, FRANMAC, Tricon and the taco shellsuppliers will join together to seek damages from those responsiblefor the introduction of StarLink corn into the U.S. supply chain,the company said. -Reuters
