In a significant restructuring of its Australian operations, Taco Bell has received a crucial reprieve from potential market exit through an emergency acquisition deal. Current franchise operator Collins Foods Limited announced plans to transfer 20 of its 27 Australian Taco Bell locations to Restaurant Brands Australia (RBA), an established global partner of parent company Yum! Brands.
The transition comes as Collins Foods reported declining performance in its Taco Bell portfolio, with earnings decreasing 3% to $23.6 million in the first half of the financial year, yielding only a modest $500,000 profit. The remaining seven underperforming stores will cease operations permanently within weeks, though specific closure locations across NSW, Victoria, Queensland, and Western Australia remain undisclosed.
Restaurant Brands Australia, which already operates Taco Bell restaurants in New South Wales and international markets, has proposed assuming control under a new partnership agreement. The acquisition is pending formal approval from the Australian Competition and Consumer Commission, with anticipated completion by August 2024.
Xavier Simonet, Chief Executive Officer of Collins Foods, emphasized the strategic rationale behind the divestment: “This transition enables Collins Foods to concentrate resources on our core KFC business in Australia and Europe, particularly accelerating profitable development in the German market.” Simonet confirmed that all employees at the transitioning locations would receive employment continuity offers from RBA.
David Mantellini, Taco Bell Australia General Manager, characterized the partnership as a long-term commitment to the Australian market: “We maintain strong belief in this market and anticipate future growth opportunities. This new alliance with RBA reinforces our dedication to expanding Taco Bell’s presence across Australia.”