How Taco Bell Tried (And Failed) To Run A Burger Chain In The '80s

As a chain with such command of the Mexican side of the fast food industry, it may be hard to imagine Taco Bell ever competing in another quick-service restaurant category. But that is exactly what happened just a few decades back. In December of 1990, the Taco Bell Corporation purchased a Michigan-based hamburger chain by the name of Hot 'N Now in an attempt to extend its empire beyond the realm of tacos and burritos.

Hot 'N Now first started in Kalamazoo in 1984 with a unique business model that prioritized speed and value above all other characteristics of quick service restaurants. The stores were drive-thru only and didn't allow customization of the items on its sparse menu, but orders came out fast, and they were very, very cheap. In 1990, the burgers cost just 39 cents each. For reference, that's about half the price of a McDonald's burger at the time.

By the early '90s, Hot 'N Now grew to dozens of locations across the Midwest, and Taco Bell — already a subsidiary of PepsiCo — swooped in to buy it. The hamburger chain became the next Pepsi-serving fast food restaurant to join the fold, following the soda giant's purchases of Pizza Hut in 1977, Taco Bell in 1978, and KFC in 1986. Unfortunately for Hot 'N Now and its fans, the burger chain was not able to find the same degree of success as its new fast food sister restaurants.

The acquisition of Hot 'N Now came at the same time Taco Bell was tinkering with its lower-priced offerings, with items ranging from 59 to 99 cents, but while Taco Bell's '90s value menu is now the stuff of nostalgic fever dreams, the brand's burger chain couldn't keep up. At its largest, the Hot 'N Now only reached a footprint of around 150 locations. The brand couldn't seem to get the formula quite right, and by the mid-'90s Hot 'N Now's popularity was cooling. In 1996, Taco Bell sold the company. Just a few years later, in 2004, as ownership changes continued to wreak havoc on the brand, Hot 'N Now filed for bankruptcy.

This Midwestern discount burger chain might've been nearly wiped off the map following its disastrous spell in the '90s and early-2000s, but Hot 'N Now is making a comeback in Michigan. At its lowest point, the brand was reduced to just one restaurant in Sturgis, Michigan. But the nearly defunct restaurant chain is reopening stores after being purchased by Gun Lake Investments and B Cubed, a manufacturer of modular drive-thru buildings that will produce the new Hot 'N Now restaurants.

Presently, the return of Hot 'N Now is still in its early stages, with just two locations in Wayland and Alpena, Michigan. The chain has stayed true to its origins, though, offering low prices, walk-up and drive-thru-only service, and a simple menu featuring signature items like the Michigan olive burger. Taco Bell may not have managed to figure out the trick to Hot 'N Now's success, but the speedy burger brand keeps hanging on.