In a significant game-changer in the fast food industry, Taco Bell recently outpaced some of its main competitors with the launch of Doritos Locos Tacos, selling roughly one million of these tacos a day last year. The huge jump in sales also meant the company hired an addition 15,000 employees. It was the "biggest launch in Taco Bell history," according to Greg Creed, chief executive officer of Taco Bell.
Dan Gross, columnist and global business editor at Newsweek and The Daily Beast, recently wrote about this phenomenon and the marketing strategy behind it.
Comments [1]
Can't even do a straight story on Taco Bell's success with the "Doritos Locos" product offering leading to more jobs, more construction, etc. ...
It's hardly the lesson in "Keynesian Economics" claimed by Dan Gross.
Even Hockenberry's "takeaway" emphasizing that point (". . . Demand drives jobs - not all the fiscal policy that we hear talk about all the time.") hardly has a leg to stand on in the "story" as presented. ;-)
There was no articulated, unfunded, "demand" for a commercial serving of seasoned, grilled "chop meat" (whatever the actual proportions of bovine to equine) and processed vegetable filler, wrapped in an over sized Dorito chip, before the individuals at "Frito-Lay"'s product research, marketing and financial departments decided to commit the resources to offer the product to its customers and potential customers.
(I expect that "This American Life" will be reporting on the Super-Bowl party where some Frito-Lay personnel questioned the necessity of having their chips separated from their dips.)
Obama's government subsidized industrial efforts (what might be seen more as instances of classical "fascism" as much as classical "keynesian-ism") are incapable of duplicating that kind of economic development.
At the first level, "product development" could just as plausibly recommended an "Oreo-Loco", especially if the cookie producers were credited to have had critical input into the electoral success of the deciding government officials and their appointed bureaucrats.
Despite my personal opinion of this gastronomic mash-up, the "office of product acceptance" could likewise demonstrate an acceptable level of
"consumer demand", especially at a price-point lowered by the contribution of general tax funds needed to subsidize needed employment opportunities.
Fear not, the "Nanny" policies of "Bermuda Mike" Bloomberg would outlaw the product - too much salt, too many calories. (City Council President Quinn would reluctantly support that result so long as she and her council co-conspirators had jurisdiction over the funds necessary to supply the consequently unemployed with a "living" unemployment benefit.
No gentlemen, the success of Taco Bell’s “Doritos Locos” is more aptly explained by the principles of “Supply-Side-Free-Market-Capitalism”, even though the NPR style manual proscribes the use of those term in a positive light. ;-)
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