The Fascinating Story Of How Taco Bell Flopped In Mexico

Tacos, quesadillas, nachos — all of these dishes bring to mind Mexican cuisine. So, one might assume a dining establishment that offers these items, like Taco Bell, would thrive in Mexico. Yet, even though the chain has tried two times, ultimately it failed at becoming a staple in the country. 

Taco Bell began its efforts in 1992, when it introduced a food cart in Mexico City where customers could purchase soft-shell tacos, burritos, and Pepsi. The chain opened several other locations in Mexico, but the reaction was nothing but negative for two main reasons: the price and the unfamiliarity of the menu items. 

Back in the '90s, someone could purchase tacos and a beverage at one of Taco Bell's Mexican spots for about $3.25, yet a local vendor could offer the same thing for about half that price. Additionally, residents had no idea what some of the American-influenced food items were, such as a hard-shell taco, since it was not authentic to the region. The company even tried re-naming it the "Tacostada," but regardless, it never caught on, and all Taco Bell locations in Mexico closed by 1994. 

Taco Bell tried to launch in Mexico again in 2007, where it embraced a new angle. Instead of competing with local taquerias, it tapped into its identity as an American establishment, selling french fries and soft-serve ice cream at a location in Monterrey. Nevertheless, this new spin flopped too.

More fast food chains that failed in other countries

While Taco Bell's Nacho Fries and Toasted Breakfast Tacos have become a hot commodity in the United States, those items will never appear in Mexico, as zero Taco Bell locations have popped up again since the final closure in 2007. Similarly, other American fast food chains have struggled to appeal to citizens of other countries.  

Iceland, for example, gave a cold shoulder to Dunkin' back in 2019, when all four locations closed after only being operational for less than four years. The company stated that even though there was an initial high demand, the glazed donuts and sweet coffees were not as enticing to Icelanders — and little interest made it too expensive to keep the stores open. 

Unsurprisingly, Domino's also suffered defeat in Italy, the home of pizza. Originally, Domino's was eager to serve Italians, establishing roots in the country in 2015 and offering delivery and American toppings (like the controversial ingredient pineapple). But once other local restaurants also provided delivery services, chances looked slim for the company's success. In 2022, after struggling in the post-pandemic world, the company announced all locations would be closing in Italy.