Greg Creed, the former CEO of Yum Brands, recently shared some compelling thoughts on LinkedIn regarding the contrasting Q1 same-store sales performance of Taco Bell (+9%) and McDonald’s (-3.6%). His analysis offers valuable lessons for anyone in the fast food industry, and beyond. Creed argues that the key differentiator boils down to one crucial concept: avoiding “beige-ness.”

Let’s dive into some of the key takeaways from his open letter and how they can inform success in the competitive fast food landscape.

Dare to Be Different – The Anti-“Just Right” Approach

“As a marketer there was a metric called the “just right” score and in my experience it should be called the “just wrong” score because being just right means you are simply average or indifferent or what I call beige … and nothing as a brand is worse that being beige, it upsets no one bit (sic) let’s be honest no one loves beige”

Creed challenges the notion of simply being “just right.”

He recounts a marketing metric with that very name, suggesting it’s more accurately the “just wrong” score. His reasoning is sharp: being merely average equates to indifference.

In a world saturated with options, blending in is the quickest route to being forgotten. Taco Bell, Creed points out, isn’t a brand that elicits a lukewarm response. People tend to either love it or have a strong opinion against it. This polarization, while potentially risky, creates passionate advocates – a far cry from the neutral stance many might have towards a “beige” brand. The takeaway here is clear: don’t strive for inoffensive mediocrity; aim for a distinct identity that resonates strongly with a segment of your audience.

Authenticity is Your Anchor – Knowing Your Brand DNA

“Taco Bell has recently completely reinvented itself as a “chicken chain” without walking away from who the brand is … simply brilliant.“

While advocating for boldness, Creed also subtly emphasizes the importance of staying true to your brand’s core identity. Taco Bell’s recent evolution into a significant “chicken chain” didn’t come at the expense of its established Mexican-inspired roots. They innovated and expanded their offerings without abandoning what made them Taco Bell in the first place.

This highlights a crucial balance: growth and adaptation are vital, but they must be built upon a solid understanding of your brand’s essence and what your loyal customers expect.

Embrace the Passion (Even if it Means a Few Naysayers) – The Power of Strong Opinions

“People either love or hate Taco Bell, clearly there are a lot more lovers thank goodness, whereas when you ask people about McDonald’s they are fairly indifferent, no one I know hates McDonald’s but then no one raves about them either “

Creed’s observation that “people either love or hate Taco Bell” isn’t a negative. In fact, he frames it as a strength. Strong brands often evoke strong emotions, both positive and negative. Trying to please everyone can lead to a diluted identity and ultimately, indifference. As Creed states, “it upsets no one but let’s be honest no one loves beige.”

The lesson here is to not shy away from bold flavors, unique concepts, or even slightly polarizing menu items if they contribute to a strong brand identity and cultivate a passionate fanbase.

You can’t win over everyone, and trying to might mean you strongly connect with no one.

Don’t Be Afraid to Evolve – Calculated Risks for Growth

Creed points to Taco Bell’s successful foray into the chicken market as a prime example of smart risk-taking. He notes the significant shift in their protein mix, suggesting the new Cantina Chicken and chicken nuggets are likely major drivers of their impressive growth.

This demonstrates the power of strategic reinvention.

While staying true to your core is important, being stagnant is a recipe for decline. Taco Bell’s willingness to significantly expand its menu offerings in a new category showcases the potential rewards of calculated risks and a willingness to adapt to changing consumer preferences.

Conclusion

Greg Creed’s insights offer a valuable roadmap for fast food brands looking to thrive. By embracing boldness, staying true to their core while being open to evolution, and understanding that strong opinions can be a sign of a strong brand, companies can avoid the dreaded “beige” and cultivate the kind of passionate following that leads to significant success, as Taco Bell’s recent results clearly illustrate. What bold moves can your brand make to stand out from the crowd?

Read the full letter on LinkedIn here