Success Stories: Dave Smith

Taco Bell franchisee Dave Smith followed in his father’s footsteps ­ and has never regretted it for a minute.

For one thing, he says, owning 13 Taco Bell restaurants (soon to be 16) has given Dave and his family tremendous financial security, plus—and perhaps even more important—it gave Dave five years of working side-by-side with his father prior to his passing just as the business was starting to grow beyond its Sacramento roots. "Being a Yum! franchisee absolutely changed my life, and it has supported my mother and my family," Dave says.

Recently installed as Marketing Chairman for Taco Bell's national franchise organization, FRANMAC, Dave works closely with President Greg Creed and Chief Operating Officer Rob Savage, and he praises former Taco Bell President and now Yum! President of U.S. Brand Building, Emil Brolick for "having a real franchise perspective" and "keeping the stockholders in mind in every decision he makes." Dave continues: "It speaks to David Novak's ability to choose leadership within Yum! Brands that has really made a difference to me, to other franchisees, and to the company itself. It has really moved our business forward."

Dave's father and mother took the family on vacation to Southern California in 1967, and while there they stopped in Downey to sample a new restaurant called Taco Bell. His father was so impressed he inquired about obtaining a franchise and soon opened the first Taco Bell in Sacramento. An engineer with Texaco, he borrowed $25,000 from family and friends to launch the venture. The restaurant opened with six menu items, each priced at 19-cents, and sales on the first day totaled $800. That first restaurant has continued since and is due this year for a scrape and rebuild, transforming itself with the Bold Choice design.

The family business grew slowly mainly because Dave's dad held onto his job with Texaco for five more years. He built a second Taco Bell in the 1970s. Following his father's death, Dave stepped in and built three more restaurants by 1994. When he closes the deal on three more restaurants soon, he will have a total of 16 Taco Bells, all within a 100-mile radius of Sacramento.

"It continues to be a good business for me," Dave says. "My infrastructure continues to get bigger. We have two Area Coaches now and a pretty big administrative staff."

And what about the possibility of third-generation participation in the business? "Well, with one daughter graduating Georgetown University this year with a degree in Eastern European studies and another 10 years old right now," he jokes, "So it looks like I'm going to have to continue working for a few more years."

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