Adios, pup: Taco Bell dumps ad agency behind Chihuahua

LOS ANGELES - Drop the Chihuahua!

In a surprise announcement, Taco Bell said it will replace its top executive and the advertising agency that introduced the chalupa-loving, talking dog in commercials.

Peter Waller, president of the Irvine, Calif.-based fast-food chain since 1997, will be replaced by Emil Brolick, 52, a 12-year veteran at Wendy's International who has overseen product development and strategy at the burger chain.

The Chihuahua, known for its trademark slogan, "Yo quiero Taco Bell," will not play a prominent role in future ad campaigns, though it might get a cameo role now and then, said David Novak, chairman of Taco Bell's parent company, Tricon Restaurants International.

The Los Angeles advertising agency TBWA/Chiat Day introduced the Chihuahua shortly after winning a $200 million account in 1997.

Taco Bell said it would return all of its advertising to its former agency, Foote, Cone & Belding Worldwide.

The talking Chihuahua turned into a national phenomenon in 1998.

Taco Bell customers bought 13 million Chihuahua plush toys. The dog and its tag line became fodder for jokes on late-night talk shows.

The Chihuahua has faded from ads in recent months as Taco Bell decided to focus on its low-price menu items.

Second-quarter results released Tuesday showed sales dropped 6 percent at company restaurants open at least a year.

"Last year's sales were flat; this year's are down. We recognized that some fundamental changes were necessary at Taco Bell," Novak said.

Tom Carroll, chief executive of TBWA/Chiat Day, said ditching the Chihuahua would be a mistake. "People like the dog," he said. "It's just that simple."

Tricon, based in Louisville, also owns Pizza Hut and KFC.