Taco Bell’s presence in Australia may soon come to an end, as Collins Foods Limited—the fast-food franchise operator behind the American chain Down Under—has announced its intention to either sell or shut down its entire Taco Bell network across the country. The decision comes just eight years after the iconic U.S. brand made its third attempt to gain traction in the Australian fast-food market.
Collins Foods currently operates 27 Taco Bell stores throughout Australia. However, the company confirmed it will be stepping away from the venture, citing ongoing discussions with Taco Bell International about a potential ownership transition. If a buyer cannot be found within the next 12 months, Collins Foods has indicated that it will explore alternative exit strategies.
Taco Bell’s Rocky Journey in Australia
Taco Bell’s history in Australia has been turbulent. The brand first entered the market in 1981 but was forced to withdraw after a legal dispute with a local restaurant operating under the name “Taco Bell’s Casa.” A second launch in 1997 fared slightly better but ultimately ended in 2005 after a brief eight-year run.
The current iteration began in 2017 with bold ambitions to roll out more than 50 locations by 2021. Despite early momentum, expansion slowed considerably, and now, with only 27 stores in operation, the venture is poised for another possible exit.
No Impact on KFC Operations
While Taco Bell’s future remains uncertain, Collins Foods has reaffirmed its commitment to KFC, the company’s flagship brand. The firm operates hundreds of KFC locations across Australia and several overseas markets. In contrast to the Taco Bell wind-down, Collins Foods is actively investing in KFC’s continued growth, including international expansion into Germany.
Next Steps and Potential Outcomes
As part of the transition plan, Collins Foods aims to complete any sale or transfer of Taco Bell Australia within a 12-month window, pending agreement on formal terms with Taco Bell International. If negotiations do not result in a viable path forward, the company may pursue other strategies such as store closures or asset liquidation.
While no immediate shutdowns have been announced, the future of Taco Bell in Australia hinges on securing a new operator willing to take over the franchise. Collins Foods is expected to provide updates on the process, including potential financial impacts and exit costs, as the situation evolves.
Strategic Refocus on Core Brands
This strategic withdrawal highlights a broader trend of companies consolidating around core-performing brands during economically volatile times. With consumer preferences shifting and competition in the quick-service restaurant sector intensifying, operators are increasingly focusing on scalable, high-performing assets.
