Collins Foods, the parent company of Taco Bell Australia, has announced plans to either shut down or sell its network of Taco Bell stores across the country. This decision comes as the company intends to exit the Taco Bell business while continuing to expand its KFC operations, which it has successfully managed for over 50 years.
In a statement to investors, Collins Foods indicated they are in discussions with Taco Bell International regarding a potential transition of the business to new ownership. The goal is to complete this transition within the next year, pending formal agreements. If a buyer is not found within this timeframe, Collins Foods may pursue alternative exit strategies for the 27 Taco Bell locations in Australia.
Despite the challenges facing Taco Bell, Collins Foods reassured that there are no plans to close any KFC outlets. The company remains focused on maintaining high-quality food and customer trust, particularly during these economically challenging times. They have a strong commitment to KFC, with recent expansions into Germany, showcasing their dedication to the brand.
The first Taco Bell opened in Australia in 1981 but was followed by a tumultuous history, including a closure after a failed attempt in 1997 and a subsequent relaunch in 2017, aiming to open over 50 stores by late 2021. However, the current situation signifies an uncertain future for the fast-food chain in Australia.
As the brand navigates this transition, former general manager of Taco Bell Australia, Krystal Zugno, has been promoted to oversee operations for both Taco Bell and KFC in the Australian market. Further updates on this situation, including potential exit costs, will be provided as discussions progress.
The landscape for fast-food in Australia is shifting, with Collins Foods prioritising its core operations while seeking a viable future for Taco Bell within the region.