Taco Bell Chihuahua Looking for Work
July 19 -- The ad agency that created the popular Taco Bell talking Chihuahua is in the doghouse.
Taco Bell said its $200 million advertising contract with California powerhouse TBWA/Chiat/Day would be reassigned to FCB Worldwide.
That doesn’t mean the dog is dead. David Novak, CEO of Tricon Global Restaurants — Taco Bell’s parent company — told USA Today that the famous Chihuahua may be kept around for in-store promotions.
But his TV career could be over.
“I would not be surprised to see ads that do not have the dog,” he told the newspaper.
Dog-Gone Angry
The agency that created the dog — certainly one of the best-known advertising inventions of recent years — says the company is looking for a scapegoat.
“The business isn’t doing well and we’re one of the victims,” TBWA/Chiat/Day President and CEO Tom Carroll told the New York Times. “Sometimes when brands are struggling, good things are dismantled.”
Carroll told USA Today he was disappointed in the move.
“We did outstanding work for this brand over the last three years. And we take the bullet? It’s hard to swallow,” he was quoted as saying. “When we had the right product and the right advertising, we moved traffic and sales. That’s a fact.”
Sales Slump Leads to Shakeup
Tricon said same-store sales at Taco Bell were down 6 percent for the second quarter, the results of which were announced yesterday. The company posted a higher-than-expected 16 percent rise in second-quarter operating earnings, but lowered its full-year operating earnings forecast due to sluggish sales at Taco Bell.
“The underlying consumer dynamics of the Taco Bell brand are solid,” insisted Novak in a statement. “We are bringing fresh, new thinking to the brand to better leverage Taco Bell’s unique market strengths and will continue to invest in the brand to make this happen.”
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