‘It’s so absurd, it may just be successful’

Since then, free trade and growing migration have made U.S. brands ubiquitous in Mexico, influencing everything from how people dress to how they talk.

McDonald's has modified its menu to offer eggs "a la Mexicana" and even hands out packets of jalapeno sauce with its hamburgers. In contrast, Taco Bell advises customers of offerings that are "spicy" instead of the Spanish "picante."

"Taco Bell wants to take advantage of the perception that if something comes from the United States, it tastes better, that a country that has been Americanized is willing to Americanize food that is central to its cuisine," Monsivais said. "It is an absurd idea, and given that it's so absurd, it may just be successful in upper-class areas."

With U.S. sales sluggish, Yum Brands has been expanding abroad. Its goal is to have 800 stores in its international division by the end of this year.

Yum Brands reported Monday third-quarter profits rose 21 percent in its international division and 28 percent in China, while U.S. profits rose a scant 1 percent. Same-store sales at company-owned Taco Bells fell 6 percent for the three months ended Sept. 8.

In Mexico, other U.S. chains, like KFC and Chili's Grill & Bar, have been wildly popular. But one of the most successful has been Starbucks, which has expanded to over 150 stores in five years, even though its venti chai latte costs almost as much as a day's minimum wage.

The Starbucks outlets are mainly in wealthier neighborhoods. Taco Bell is aiming at a different demographic — opening in the solidly middle-class Monterrey suburb of Apodaca, an area where residents may not have traveled to the United States.

"We want to appeal to consumers who haven't tried Taco Bell, for whom this would be their first experience with Taco Bell," said Javier Rancano, the company's director in Mexico.

Taco Bell is building its second store in another Monterrey suburb, and plans to open between 8 and 10 more locations in 2008, with plans to eventually reach 300 stores, Rancano said. The first stores will be company-owned, while franchise opportunities will open up in later years.

It's a tiny slice for Taco Bell, which has almost 5,800 locations in the U.S. and 278 abroad, including other Latin American countries, Europe and Asia. But Mexico's relatively youthful population of 107 million, and its proven taste for fast food could make it an attractive business.

On a recent weekday afternoon, about 20 customers were eating at the first store, picking from a menu offering tacos for just over US $1 and a grilled beef burrito for about US $5.70. That's in line with prices at other fast food outlets in the area, but some customers weren't impressed.

"Something is lacking here," said one customer at the Apodaca restaurant, Jonathan Elorriaga, 26. "Maybe the food shouldn't come with french fries."

For many, the menu is a stumbling block. Retired Mexico City government worker Jesus Paredes, 60, said he was excited for Taco Bell's return, but couldn't quite identify their food.

"I remember a lot the very big tacos they sell. They were very big," said Paredes, apparently referring to burritos. In southern Mexico, a burrito is just grilled ham and cheese on a tortilla.

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