Collins Foods, the Australian parent company of Taco Bell and a major KFC operator, has revealed its intention to divest from the Taco Bell business within Australia.
In an announcement directed towards investors, the company stated it is seeking either a sale or complete closure of its 27 Taco Bell locations nationwide. The move does not impact operations at KFC; no closures are planned for those restaurants and Collins Foods intends to continue investing in that brand, including expansion into Germany.
“Discussions are currently underway with Taco Bell International (TBI) regarding the potential transfer of ownership,” a statement from Collins Foods confirmed. The company anticipates this transition will be finalized within 12 months, pending agreement on formal terms.
As stated in their official communication:
“Collins Foods intends to complete the transition within the next 12 months, subject to formal terms being agreed. A further update will be provided, including estimated exit costs, as matters progress. If a new operator cannot be identified and/or an agreement cannot be reached, other exit options will be explored.”
Taco Bell’s history in the Australian market has been turbulent. The brand initially entered the country in 1981 but faced early challenges, including legal action from a Sydney restaurant named Taco Bell’s Casa. A second attempt in 1997 proved equally short-lived, lasting only eight years.
The current iteration of Taco Bell launched in 2017 with ambitious plans to establish over 50 stores by the close of 2021; however, that goal was not realized.
Managing Director and CEO Xavier Simonet emphasized Collins Foods’ commitment to KFC, highlighting its long-standing success.
“Collins Foods has successfully operated KFC restaurants for over 50 years, building a reputation as a trusted operator,” he stated. “In a challenging economic environment, the customer remains at the heart of our business. 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.”
Following this announcement, Krystal Zugno, formerly general manager of Taco Bell in Australia, has been appointed to oversee operations for both Taco Bell and KFC within Australia.
Here’s what the future holds:
- Collins Foods is actively seeking a buyer for its Australian Taco Bell locations.
- If a sale fails within 12 months, alternative exit strategies will be considered.
- KFC operations are unaffected and remain a priority for Collins Foods.
