PepsiCo's Taco Bell, KFC to Test 50 Dual-Brand Restaurants

Taco Bell Corp. and KFC Corp. plan to test dual-brand restaurants, selling both chicken and Mexican-style fast food at about 50 locations around the country, the companies said Tuesday.

"We'll have to wait and see what the guest response is, whether they're coming into the restaurants more frequently, and whether they want more options to choose from," said Jonathan Blum, a vice president for Taco Bell in Irvine.

The 50 test locations will be open by the summer, said Jean Litterest, a spokeswoman for KFC in Louisville, Ky. "This seems like a perfect fit, but we're not yet sure how it will expand," she said.

Taco Bell and KFC are both owned by PepsiCo Inc. in Purchase, N.Y.

Industry analysts suggested that the pairing might benefit both chains because Taco Bell generates strong lunch sales while KFC's strongest business comes during the dinner hour.

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