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
  • 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.
  • Executives used social media savvy and partnerships with other brands to make the chain iconic. 
Taco Bell is celebrating its 60th anniversary in March, but it hasn't always been the fast-food powerhouse it is today.
taco bell
Taco bell
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.
Tacos

Source: Encyclopedia Brittanica

Bell frequented a small Mexican restaurant across the street from his own business, Mitla Cafe. He sought to recreate the restaurant's popular tacos.
A photo of a piece of paper at Mitla Cafe in San Bernardino, California that explains the restaurant's connection to Taco Bell founder Glen Bell.

Source: Insider

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

Source: Taco Bell

The original menu sold just five items for 19 cents each.
Original Menu with Kermit Becky Taco Bell
Taco Bell's original menu from the 1960s.

Source: Insider

Two years later, the first Taco Bell franchise was opened in Torrance, California.
1973 San Anselmo Taco Bell

Source: Taco Bell

The chain grew quickly, and the 100th Taco Bell opened in 1967 just five years after Bell opened the first restaurant.
Taco Bell 1970s

Source: Taco Bell

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.
taco bell vintage menu sign 1973
The menu from a Taco Bell in San Anselmo in 1973.

Source: Insider

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

Source: Encyclopedia Britannica 

Locations had nearly tripled again by 1978 when Bell sold to PepsiCo for about $125 million.
Taco Bell
Customers line up at a Taco Bell restaurant inside Miami International Airport in Miami.

Source: Encyclopedia Britannica 

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.
Taco Bell Value Menu

Source: Insider

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 Mexican Pizza
Taco Bell's Mexican Pizza.

Source: Insider

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.
Taco Bell Value Menu

Source: Taco Bell, Eater

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.
Taco Bell Value Menu

Source: The New York Times

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

Source: Encyclopedia Britannica

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

Source: Encyclopedia Britannica

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

Source: Los Angeles Times

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.
Taco Bell frozen Baja Blast

Source: Encyclopedia Britannica

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

Source: Taco Bell 

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.
Taco Bell doritos locos taco

Source: Insider

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.
Flamin' Hot Doritos Locos Tacos Taco Bell

Source: Insider

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 Go Mobile pickup lane
One side of the drive-thru is designated for mobile orders.

Source: Encyclopedia Britannica

Taco Bell tapped into its huge vegan and vegetarian market with a certified vegetarian menu and promoting ways to make other dishes vegan.
New Vegetarian Menu
Taco Bell's new vegetarian menu.

Source: 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.
taco bell

Source: Taco Bell

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.
Taco Bell Nacho Fries
When the COVID-19 pandemic closed many businesses in 2020, Taco Bell thrived thanks to its established drive-thru business.
taco bell drive thru
A Taco Bell employee delivers an order to a customer at the drive-up window of the restaurant on March 31, 2020.

Source: 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.
Taco Bell Go Mobile drive thru
Two drive-thru lanes.

Source: Insider

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

Source: Insider

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, London
Taco Bell opening Hammersmith, London
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.
Taco Bell

Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.

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