With over 80 locations at its peak, Zantigo, alongside its sister/parent company Kentucky Fried Chicken, was sold to PepsiCo, with the former being merged into Taco Bell in 1986.

But by 1980, KFC had put expansion plans for Zantigo on hold in order to focus on its core Kentucky Fried Chicken business.

Since Pepsi already owned a national Mexican food chain, Taco Bell, the decision was made to close or convert all existing Zantigo restaurants, of which there were 82 as of the October 1, 1986 announcement.

Zantigo had several unique menu items, including the Chilito, the Taco Burrito, and Chips 'n' Cheese.

Of these, the Chilito was carried over by Taco Bell in former Zantigo markets and was promoted to a chain-wide item, later renamed "Chili-cheese Burrito".