Monday, October 29, 2007

The economics of a free taco


Taco Bell reportedly paid $5.6 million to advertise its taco giveaway during the World Series.

The promise was that if a player, any player, stole a base, everyone in America would get a free taco.

The base was stolen in Game 2 and now it's payup time.

An expert figures it will cost Taco Bell less than $1 million cause:

-- it costs about 20 cents to make one of those "crunchy" tacos.

-- if every Taco Bell in America (6,000) gave away three free tacos a minute for three hours, that'd be about 3 million tacos.

-- at 20 centavos a taco, that's around $700,000, reports Ad Age.

Here's the angle -- the giveaway will be between 2 and 5 p.m. on Tuesday, after most people already have eaten lunch. Moreover, they figure you'll buy a soft-drink to wash it down. The profit margin on a soft drink is even greater than a 77-centavo taco. And, finally, they figure a visit to a Taco Bell induced by a free taco will result in more visits to Taco Bell in the future.

I'll tell you this right now. Should I show up for a free taco tomorrow, I ain't ordering a soft drink. Just a water for me, thank you. Just to be ornery and stick it to the man, I guess.

2 comments:

Corey said...

Now residing in the slightly crispy community of Southern California, I don't think I could pass up all the fantastic Mexican food found around these parts for a crunchy Taco Bell taco.

Even a free one.ht

Anonymous said...

Banjo, Basnjo, Banjo, you taco-eater, you. Hell, I bet you'll hit every Taco Bell joint on Brazoria County for your freebie! Who ya tryin' to sheeee-it here, son?