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January 31, 2011 - The Yum! brand is under scrutiny after one of its flagship franchises, Taco Bell, has been named in a class action lawsuit regarding truth in advertising.
The Consumerist reports that the class action lawsuit was filed after the plaintiff alleged that their "seasoned beef" is only 36% meat and the rest is "extenders" such as oats. The class action suit filed by Montgomery, Alabama law firm Beasley Allen does not actually seek any monetary damages beyond attorneys' fees and only requests that Taco Bell puts truth in their advertising by changing the claims on their product contents.
Taco Bell president Greg Creed released a statement on January 26 responding to the lawsuit's allegations. He claims that the beef used in their locations is USDA approved 100% beef, simmered in a proprietary mix of spices, and all ingredients are listed on the website.
As for the commentary on fillers and the percentage of what's really beef in the mix, according to Taco Bell it's 88% beef with the remaining 12% a mix of water for moisture, spices, and oats to "contribute to the quality of our product." The focus of the lawsuit is on that alleged 12%, which the plaintiff claims is much higher.
Taco Bell and its parent company, Yum! Brands, are fighting the lawsuit as it has raised many consumers' questions regarding just what they are consuming when the product description reads "seasoned beef".
This type of issue can be a frustrating blow to a franchisor as it harms the integrity of the brand but also puts the innocent franchisees in a tough position. When franchise names are spotlighted in the media for a lawsuit regarding their products or practices, the franchisees are often harmed in the crossfire. As a franchisor, you should develop a plan of action with your New Jersey franchise lawyer to deal with such issues if they arise in the future of your franchise system.
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