Get All Access for $5/mo

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.

Editor's Pick

Management

Why Business Owners Should Mix Strategy with Hands-On Involvement

Conventional wisdom says to work on the business, not in the business. That sounds like good advice, but is there more to it? Yes, and finding the balance is key to entrepreneurial success.

Fundraising

Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.

Starting a Business

How to Find the Right Programmers: A Brief Guideline for Startup Founders

For startup founders under a plethora of challenges like timing, investors and changing market demand, it is extremely hard to hire programmers who can deliver.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Growing a Business

You Need an Advisory Team More Than Ever. Here's Why — and How to Run One Effectively.

The right advice, particularly in a company's early stages, can be an existential matter: how to surround yourself with the right minds.