
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, May 9, 1995                   TAG: 9505090129
SECTION: BUSINESS                    PAGE: B-5   EDITION: METRO 
SOURCE: The New York Times
DATELINE:                                 LENGTH: Medium

TACO BELL RINGS IN A RECORD

How did Taco Bell's great food giveaway go Monday? ``I felt like I was in a shark tank holding a big piece of steak,'' said John Martin, the company's chairman and chief executive, who joined his 135,000 troops behind the counter.

America's biggest chain of Mexican restaurants handed out an estimated eight million reduced-fat tacos and burritos in its 4,500 stores. The stunt, attempting to create demand for its new Border Lights fare, was believed to be the largest restaurant giveaway in history.

The extravaganza cost Taco Bell $8 million to $12 million for labor and food. In addition, the company spent nearly $4 million on network television advertising during the weekend to hawk the promotion to Americans who may hanker for lighter Mexican fare.

And although no purchase was necessary, for most of the millions of customers the event was not a free lunch, since many bought a drink or another menu item to go with their Border Lights freebies during the three-hour extravaganza.

But cost was secondary to fun, Martin said in an interview, ``and we're having more fun than ever in fast food.''

Not much fun, however, were the long lines at some stores, which spilled onto the streets at a few urban locations like the Taco Bell on West 31st Street in New York City.

And fun it was not for a number of customers, like Ed Wolf, who munched a light Seven-Layer Burrito at the Taco Bell on West Fourth Street in New York City, and said, ``I don't think I'd try it again - unless, of course, it's free.''

But many liked what they tried. ``This tastes as good as the real thing,'' Larry Gail, who sampled a light Taco Supreme, said. ``I'd come back and buy more of them.''

Taco Bell, which is owned by Pepsico Inc. of Purchase, N.Y., dominates the Mexican fast-food universe, with 76 percent of the market, drawing more than 50 million customers a week. But analysts have said the company needs new-product growth, given its sales decline for two consecutive quarters.

The giveaway ``was unprecedented as a marketing event in the restaurant industry,'' said Ron Paul, president of Technomic Inc. of Chicago, a food industry consultant.

But Taco Bell took ``real risks'' with its promotion Monday. ``Did Taco Bell produce the items with high enough quality?'' Paul asked. ``And did they get the right kind of people standing in line, repeat customers?''

The company said yes. ``All we have to do is get these products into people's mouths, and they'll come back,'' Martin said, adding that Taco Bell had sold $100 million worth of Border Lights since March, when they were widely introduced.

by CNB