Taco Bell went from a single California restaurant to an iconic global chain in 60 years. Here's how it made tacos a billion-dollar business.

Mary MeisenzahlApr 29, 2022, 01:37 IST

Sean Newhouse for Business Insider

Taco Bell began in 1962 as a single restaurant run by Glen Bell.
By 1978 there were hundreds of franchises and the chain was sold to PepsiCo.

Taco Bell is celebrating its 60th anniversary in March, but it hasn't always been the fast-food powerhouse it is today.

Taco bellEthan Miller/Getty Images

Before founding Taco Bell, Glen Bell was already deep in the fast-food business. In 1951 he sold hard-shelled tacos at Bell's Hamburgers and Hot Dogs, and also operated Bell's Drive In.

John Tlumacki/The Boston Globe via Getty Images

Before founding Taco Bell, Glen Bell was already deep in the fast-food business. In 1951 he sold hard-shelled tacos at Bell's Hamburgers and Hot Dogs, and also operated Bell's Drive In.

Bell frequented a small Mexican restaurant across the street from his own business, Mitla Cafe. He sought to recreate the restaurant's popular tacos.

Ben Gilbert/Insider

In 1962, Bell opened the first Taco Bell in Downey, California.

Taco Bell

The original menu sold just five items for 19 cents each.

Taco Bell's original menu from the 1960s.Courtesy of Taco Bell

Two years later, the first Taco Bell franchise was opened in Torrance, California.

Photo by Stephanie Maze/San Francisco Chronicle via Getty Images

The chain grew quickly, and the 100th Taco Bell opened in 1967 just five years after Bell opened the first restaurant.

Photo by Stephanie Maze/San Francisco Chronicle via Getty Images

By the 1970s, the menu had grown to include tostadas and enchiritos, a combination of burritos and enchiladas that hinted at Taco Bell's future menu innovations.

The menu from a Taco Bell in San Anselmo in 1973.Stephanie Maze/San Francisco Chronicle/Getty Images

In 1970, Taco Bell had 375 locations across the West Coast, and Bell took it public.

Mike Blake/Reuters

Locations had nearly tripled again by 1978 when Bell sold to PepsiCo for about $125 million.

Customers line up at a Taco Bell restaurant inside Miami International Airport in Miami.AP/Wilfredo Lee

In the 1980s, Taco Bell was expanding outside the West Coast and establishing its Mexican fast-food offerings as different than other burger chains, with the Taco Salad Taco BellGrande.

Hollis Johnson/Business Insider

In the 1980s, Taco Bell was expanding outside the West Coast and establishing its Mexican fast-food offerings as different than other burger chains, with the Taco Salad Taco BellGrande.

In 1988, the chain introduced the Mexican Pizza, which was a beloved menu item until it was discontinued in 2020, and still has dedicated fans clamoring for its return.

Taco Bell's Mexican Pizza.Joshua Blanchard/Getty Images

Taco Bell launched its value menu in 1990 with items priced at 59, 79, and 99 cents each. Value menus became key in fast food, adopted by both Wendy's and McDonald's.

Hollis Johnson/Business Insider

At first, "transactions went through the roof, but profitability went through the floor," CEO John Martin told The New York Times, noting a problem that would come up again and again with value menus across the industry.

Hollis Johnson/Business Insider

At first, "transactions went through the roof, but profitability went through the floor," CEO John Martin told The New York Times, noting a problem that would come up again and again with value menus across the industry.

The first Taco Bell Express opened in 1991 with a limited menu of cheaper options, a precursor to the mobile formats that would come later.

Staff work in the kitchen at the first Taco Bell fast-food restaurant in Japan at Tokyo's Shibuya shopping district April 21, 2015.Reuters

In 1997, PepsiCo spun off its fast-food division including Taco Bell, Pizza Hut, and KFC into an independent company, eventually called Yum Brands.

BOB STRONG/AFP via Getty Images

That year, Taco Bell also introduced the iconic "Yo quiero Taco Bell" ads with Gidget the chihuahua, which became a cultural phenomenon.

REUTERS

Taco Bell continued to develop campaigns that became cultural touchstones. In 2004 it partnered with Mountain Dew to create the Baja Blast flavor, which was initially only available at Taco Bell.

John Tlumacki/The Boston Globe via Getty Images)

Taco Bell continued to develop campaigns that became cultural touchstones. In 2004 it partnered with Mountain Dew to create the Baja Blast flavor, which was initially only available at Taco Bell.

The Crunchwrap Supreme became the most successful new offering in 2005 and was permanently added to the menu the following year.

Irene Jiang / Business Insider

In 2012, Taco Bell partnered with Frito Lay to launch the Doritos Locos tacos. It sold over one billion tacos in that first year and hired about 15,000 additional workers to keep up with demand.

Irene Jiang / Business Insider

In 2012, Taco Bell partnered with Frito Lay to launch the Doritos Locos tacos. It sold over one billion tacos in that first year and hired about 15,000 additional workers to keep up with demand.

Doritos Locos tacos were a turning point for Taco Bell and marked the beginning of a new era of fast food where social media could make or break a chain's bottom line.

Courtesy of Taco Bell

Then in 2014, Taco Bell launched mobile ordering and payment on its app. This was a first in fast food and has since come to dominate the industry.

One side of the drive-thru is designated for mobile orders.Mary Meisenzahl/Insider

Taco Bell tapped into its huge vegan and vegetarian market with a certified vegetarian menu and promoting ways to make other dishes vegan.

Taco Bell's new vegetarian menu.Taco Bell

Taco Bell also launched delivery in certain markets that year, another channel that would become a cornerstone of fast food within a few years.

Crystal Cox/Business Insider

Since then, Taco Bell has continued to cycle limited-time offers beloved by customers, like Nacho Fries, the Naked Chicken Chalupa, Grilled Cheese Burritos, and others.

Hollis Johnson/Business Insider

When the COVID-19 pandemic closed many businesses in 2020, Taco Bell thrived thanks to its established drive-thru business.

A Taco Bell employee delivers an order to a customer at the drive-up window of the restaurant on March 31, 2020.Joe Raedle/Getty Images

That year, Taco Bell also announced its Go Mobile restaurant format with two lanes, one dedicated just to mobile orders, which continue to grow in the fast-food industry.

Two drive-thru lanes.Mary Meisenzahl/Insider

That year, Taco Bell also announced its Go Mobile restaurant format with two lanes, one dedicated just to mobile orders, which continue to grow in the fast-food industry.

The chain remains open to further drive-thru innovations, with plans to open an unprecedented four-lane, two-story drive-thru in 2022.

Taco Bell's new concept is set to open in summer 2022.Taco Bell

At the end of 2021, Taco Bell had nearly 7,800 locations in 155 countries according to the most recent earnings data.

Taco Bell opening Hammersmith, LondonTom Murray / Business Insider

And 60 years after its founding, Taco Bell's embrace of social media, limited-time offerings, and new ordering technology has made it a massive success.

Irene Jiang / Business Insider

I tried a $7 burger made in minutes by a robotic vending machine. It tasted average, but I still think it could be the future of fast food.

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Taco Bell went from a single California restaurant to an iconic global chain in 60 years. Here's how it made tacos a billion-dollar business.

Taco Bell is celebrating its 60th anniversary in March, but it hasn't always been the fast-food powerhouse it is today.

Before founding Taco Bell, Glen Bell was already deep in the fast-food business. In 1951 he sold hard-shelled tacos at Bell's Hamburgers and Hot Dogs, and also operated Bell's Drive In.

Bell frequented a small Mexican restaurant across the street from his own business, Mitla Cafe. He sought to recreate the restaurant's popular tacos.

In 1962, Bell opened the first Taco Bell in Downey, California.

The original menu sold just five items for 19 cents each.

Two years later, the first Taco Bell franchise was opened in Torrance, California.

The chain grew quickly, and the 100th Taco Bell opened in 1967 just five years after Bell opened the first restaurant.

By the 1970s, the menu had grown to include tostadas and enchiritos, a combination of burritos and enchiladas that hinted at Taco Bell's future menu innovations.

In 1970, Taco Bell had 375 locations across the West Coast, and Bell took it public.

Locations had nearly tripled again by 1978 when Bell sold to PepsiCo for about $125 million.

In the 1980s, Taco Bell was expanding outside the West Coast and establishing its Mexican fast-food offerings as different than other burger chains, with the Taco Salad Taco BellGrande.

In 1988, the chain introduced the Mexican Pizza, which was a beloved menu item until it was discontinued in 2020, and still has dedicated fans clamoring for its return.

Taco Bell launched its value menu in 1990 with items priced at 59, 79, and 99 cents each. Value menus became key in fast food, adopted by both Wendy's and McDonald's.

At first, "transactions went through the roof, but profitability went through the floor," CEO John Martin told The New York Times, noting a problem that would come up again and again with value menus across the industry.

The first Taco Bell Express opened in 1991 with a limited menu of cheaper options, a precursor to the mobile formats that would come later.

In 1997, PepsiCo spun off its fast-food division including Taco Bell, Pizza Hut, and KFC into an independent company, eventually called Yum Brands.

That year, Taco Bell also introduced the iconic "Yo quiero Taco Bell" ads with Gidget the chihuahua, which became a cultural phenomenon.

Taco Bell continued to develop campaigns that became cultural touchstones. In 2004 it partnered with Mountain Dew to create the Baja Blast flavor, which was initially only available at Taco Bell.

The Crunchwrap Supreme became the most successful new offering in 2005 and was permanently added to the menu the following year.

In 2012, Taco Bell partnered with Frito Lay to launch the Doritos Locos tacos. It sold over one billion tacos in that first year and hired about 15,000 additional workers to keep up with demand.

Doritos Locos tacos were a turning point for Taco Bell and marked the beginning of a new era of fast food where social media could make or break a chain's bottom line.

Then in 2014, Taco Bell launched mobile ordering and payment on its app. This was a first in fast food and has since come to dominate the industry.

Taco Bell tapped into its huge vegan and vegetarian market with a certified vegetarian menu and promoting ways to make other dishes vegan.

Taco Bell also launched delivery in certain markets that year, another channel that would become a cornerstone of fast food within a few years.

Since then, Taco Bell has continued to cycle limited-time offers beloved by customers, like Nacho Fries, the Naked Chicken Chalupa, Grilled Cheese Burritos, and others.

When the COVID-19 pandemic closed many businesses in 2020, Taco Bell thrived thanks to its established drive-thru business.

That year, Taco Bell also announced its Go Mobile restaurant format with two lanes, one dedicated just to mobile orders, which continue to grow in the fast-food industry.

The chain remains open to further drive-thru innovations, with plans to open an unprecedented four-lane, two-story drive-thru in 2022.

At the end of 2021, Taco Bell had nearly 7,800 locations in 155 countries according to the most recent earnings data.

And 60 years after its founding, Taco Bell's embrace of social media, limited-time offerings, and new ordering technology has made it a massive success.