Collins Foods to Sell or Close Taco Bell in Australia
Synopsis
Food operator Collins Foods has announced plans to sell off Taco Bell in Australia and focus on business in Europe. The operator’s managing director confirmed the franchise’s exit from Australia. “We will continue to…
Food operator Collins Foods has announced plans to sell off Taco Bell in Australia and focus on business in Europe.
The operator’s managing director confirmed the franchise’s exit from Australia.
“We will continue to deliver high-quality food at accessible prices, leveraging the heritage of the KFC brand at a time when consumer trust has never been more important.”
Currently, the food operator runs 27 Taco Bells and 285 KFC stores in Australia. However, challenges with competition from Guzman and Gomez has led Collins to refocus on business elsewhere.
Challenges with Competition
However, Collins Foods told Sky News,
"If a new operator cannot be identified and/or an agreement cannot be reached, other exit options will be explored," Collins Foods said.
In 2025, Collins saw a two per cent drop in revenue from Taco Bell. Their competitor, Guzman and Gomez, saw a 27 per cent increase in the same period.
In the 1980s, there was an attempt to put Taco Bell in Australia out of business. The owner of an Australian business called “Taco Bell’s Casa” sued Taco Bell. As a result, the company was forced to change its name.
Collins Foods launched Taco Bell in Australia in 2017. The operator put Taco Bell on the ASX in June 2024 and settled up about 15 per cent from its launch price after an initial rapid increase.
Future Plans
After the sell-off, Collins will focus on expansion in Germany. The strategy in Europe involves opening 40 to 70 new KFC stores in the next five years. However, the company will also close stores in the Netherlands.
Collins Foods managing director and chief executive Xavier Simonet said the sale of Taco Bell in Australia would give the company new clarity and purpose.
“We remain laser-focused on delivering operational excellence in our core market, Australia, where we continue to successfully adapt to a dynamic consumer landscape,” he said.
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