E. Coli Could Hurt Taco Bell Sales

By ALEX VEIGA
The Associated Press
Thursday, December 7, 2006; 10:32 PM

LOS ANGELES -- An E. coli outbreak linked to Taco Bell restaurants left the fast-food chain with a major damage-control challenge Thursday: How can it reassure customers its food is safe even as the suspected cause of the outbreak remained unconfirmed?

The outbreak has left more than four dozen people sick in at least three states. Taco Bell ordered the removal of green onions from its 5,800 restaurants nationwide Wednesday after testing by an independent lab suggested the bacteria may have come from scallions.


A man wearing a Food and Drug Administration jacket waits to be let into a Taco Bell restaurant that is closed in South Plainfield, N.J. Tuesday, Dec. 5, 2006. At least three dozen people were stricken in New Jersey and New York and apparently all the victims had eaten at Taco Bell restaurants. The threat of more E. coli infections linked to Taco Bell restaurants appears to have passed, a health official said, as the company prepared Tuesday to reopen the affected eateries. (AP Photo/Mel Evans)
A man wearing a Food and Drug Administration jacket waits to be let into a Taco Bell restaurant that is closed in South Plainfield, N.J. Tuesday, Dec. 5, 2006. At least three dozen people were stricken in New Jersey and New York and apparently all the victims had eaten at Taco Bell restaurants. The threat of more E. coli infections linked to Taco Bell restaurants appears to have passed, a health official said, as the company prepared Tuesday to reopen the affected eateries. (AP Photo/Mel Evans) (Mel Evans - AP)

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Analysts said the Mexican-style restaurant chain is likely to see sales decline in the short term.

"You've got a crisis of confidence right now," said Michael Sitrick, a crisis-management expert. "What they need to do to bring people back in the stores is to assure them that what happened in the past cannot happen in the future."

Taco Bell, an Irvine, Calif., unit of Yum Brands Inc., told customers that in addition to getting rid of all its green onions, it sanitized the affected restaurants and set up a toll-free number for people to call with concerns.

Paul Argenti, a business professor at Dartmouth College in Hanover, N.H., said Taco Bell appeared to be doing a good job handling the problem.

"When you're in the middle of it, give people any information that you know, as much as possible," he said. "Try to be honest and open and transparent."

Argenti said he believes a television ad campaign to reassure customers is not necessary. Taco Bell has a loyal customer base that "will be looking for a reason to go back," he said. "Within six months, everything rights itself."

Taco Bell spokesman Rob Poetsch said the chain is preoccupied with the investigation. He would not say if it plans a major publicity effort. The restaurant is working as closely as possible with authorities "to find the root cause of this," he said.

Also Thursday, federal health officials were monitoring two more suspected cases of E. coli in Utah and South Carolina. Officials said the South Carolina man may have fallen ill after eating at a Taco Bell in Pennsylvania. And in Delaware, all 14 Taco Bell restaurants closed for cleaning after a 15-year-old girl who ate at a Taco Bell in New Jersey was hospitalized.

Some loyal customers seemed unconcerned about the outbreak.

"I don't care. I've been eating at Taco Bell my whole life," said Josh Dowiak, 20, of Philadelphia, as he devoured a meal dripping with cheese behind a Taco Bell in Glassboro, N.J.


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