Taco Bell Stores to Close as New Owner Steps in to Keep Chain Operating in Australia
Seven Taco Bell restaurants will close as part of a major restructuring of the fast food chain’s Australian operations, after its local operator agreed to sell most of its remaining stores to a new owner.
ASX-listed Collins Foods announced it had reached an agreement to transfer ownership of 20 of the 27 Taco Bell outlets it operates across the country to Restaurant Brands Australia, a long-time global partner of Taco Bell’s parent company, Yum! Brands.
The deal, which still requires approval from the Australian Competition and Consumer Commission, is part of Collins Foods’ strategy to exit the Taco Bell business and refocus on its core KFC operations in Australia and Europe.
“This represents another important step in the execution of Collins Foods’ previously communicated strategy to exit Taco Bell in Australia,” the company said in a statement to the market.
Jobs to be retained under new ownership
Collins Foods chief executive Xavier Simonet said employees at the 20 restaurants being transferred would be offered ongoing employment with the new operator. InDaily Queensland notes that while 20 stores transition, the remaining seven will be closed, resulting in a roughly $1.2 million hit to the company’s bottom line.
We are especially pleased that our team members working in the transitioning Taco Bell restaurants will be offered continuity of employment and job security, he said.
The company expects to incur one-off costs of about $1 million to $2 million related to store closures and transaction expenses. The purchase price includes a nominal payment plus the value of stock and cash on hand, with the new operator assuming responsibility for lease agreements.
It is not yet clear which locations will close as part of the restructuring.
Chain aims for long-term future in Australia
Taco Bell has struggled to gain a strong foothold in the Australian fast food market, facing stiff competition from established brands such as Guzman y Gomez.
However, Taco Bell Australia general manager David Mantellini said the ownership change marked a fresh start for the brand rather than an exit from the market.
“This is an important moment for Taco Bell in Australia,” he said.
“We strongly believe in this market and are excited about the future with a clear focus on growing the brand and bringing more restaurants to more Australians.”
The new operator described the changes as a broader network reset designed to strengthen the brand and improve long-term growth prospects in Australia.
