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September 15, 2015 Purpose

TACO BELL NEW URBAN RESTAURANT CONCEPT REDEFINES FAST FOOD EXPERIENCE

Taco Bell Cantina Restaurants to Open in Chicago and San Francisco; New Design Offers Local Feel, Shared Appetizers and Alcohol Options

Irvine, Calif. (September 15, 2015) – Taco Bell is dropping the drive-thru, opening its kitchens and using technology to create a new experience as the brand expands into urban markets.

The new design focuses on simplifying and modernizing the restaurant experience and bringing forward an atmosphere as unique as the community in which it serves. The first of these restaurants—called Taco Bell Cantina—will open in the Wicker Park neighborhood of Chicago on Tuesday, September 22, and the second will open in San Francisco later this month.

These new urban restaurants are a critical part of our growth strategy in markets where people experience our brand differently,” said Brian Niccol, chief executive officer, Taco Bell Corp. “Today’s consumers are living in more urban settings and our new restaurants cater to their lifestyle in adapting our traditional restaurant concept to fit their modern needs.

The Taco Bell Urban Concept incorporates five consumer trends that balance relevancy and brand authenticity:

Urbanization: The Taco Bell Urban Restaurant Concept reflects the Millennial trend of seeking more urban environments to live, work and play. These restaurants are ideally suited to fit in with pedestrian areas without drive-thrus.

Digitization: Every point of the customer’s ordering journey is optimized through technology, including digital menu boards, TV monitors and Taco Bell mobile ordering and payment app pick up.

Localization: Taco Bell incorporated the local architecture of the neighborhoods each restaurant serves.

The Wicker Park restaurant’s brick walls and prismatic glass were restored to help preserve the 100-year-old building. The location also features a mural designed by local artist, Revise CMW, which serves as a nod to the neighborhood’s history as an artistic hub.

The San Francisco restaurant, located near AT&T Park, features a patio and mobile pick-up window to cater to the quick pace, tech savvy and vibrant community.

Green: The new urban locations will be more energy efficient with systems including LED lighting, use of reclaimed elements where possible and recycling.

Transparency: An open kitchen design and food served in open face baskets gives customers a look inside Taco Bell’s quality ingredients.

Taco Bell Cantina restaurants will be the first and only Taco Bell restaurants to serve alcohol to customers who are of legal drinking age. The San Francisco restaurant will serve beer and wine only, while Wicker Park will serve beer, wine, sangria and twisted Freezes. Cantina restaurants will also feature a new tapas-style menu of shareable appetizers – including nachos and rolled tacos – during designated hours each evening, in addition to the full standard Taco Bell Menu.

As part of Taco Bell’s overall growth plan, the brand is on a path to add 2,000 stores to its portfolio by 2022. Expansion plans for additional urban markets are currently being evaluated as Taco Bell is striving to build or remodel around 600 restaurants per year, providing 600 opportunities to do something different and impact the customer experience.

About taco bell® corporation

Taco Bell Corp., a subsidiary of Yum! Brands, Inc. (NYSE: YUM), is the nation's leading Mexican-inspired quick service restaurant (QSR) brand. From breakfast to late night, Taco Bell serves made-to-order and customizable tacos and burritos, among other craveable choices, and is the first QSR restaurant to offer American Vegetarian Association (AVA)-certified menu items. Taco Bell and its more than 350 franchise organizations proudly serve over 42 million customers each week through 7,000 restaurants across the nation, as well as through its mobile, desktop and delivery ordering services. Overseas, Taco Bell has over 250 restaurants, with plans to add 2,000 more restaurants internationally within the next decade. The brand encourages its fans to “Live Mas” and connects with them through sports, gaming and new music via its Feed The Beat® music program. Taco Bell also provides education opportunities and serves the community through its nonprofit organization, the Taco Bell® Foundation™, and connects fans with their passions through programs such as the Live Mas Scholarship program. In 2016, Taco Bell was named as one of Fast Company’s Top 10 Most Innovative Companies in the World.

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