Hundreds of staff at Taco Bell restaurants across Australia have been left in limbo after revelations seven of the chain’s 27 stores would close.
ASX-listed fast food giant Collins Brands is finalising an agreement to offload its ownership of stores after the brand failed a third attempt to win over the tastebuds of Australian customers.
The stores will be acquired by Restaurant Brands Australia, which already owns the brand and operates the 10 NSW stores.
RBA will pay a “nominal amount” for the stores, as well as stock value and cash floats.
The remaining seven Taco Bell stores will be closed, with impacted locations yet to be announced.
Outside of NSW, Taco Bel operates restaurants in Queensland, Victoria, and Western Australia.
Collins Brands, which also owns the majority of Australia’s KFC stores, signalled its intention to dump Taco Bell last year.
Taco Bell employees Chessica Lamai, Sarah Holmes and Sarah Hocking are ready to serve up tasty tex-mex. Picture: Stewart McLean
Collins revenue for its 27 Taco Bell stores dipped 3.0 per cent to $23.6m in the first half of FY26, with its underlying earnings at a tiny $500,000, according to media reports.
In a statement to the market on Tuesday morning, the company said the move “represents another important step in the execution of Collins Foods’ previously communicated strategy to exit Taco Bell in Australia”.
“This will allow the Company to sharpen its focus on its core brand, KFC, and its key markets, Australia and Europe, particularly Germany,” it said.
The details of the partnership are still being finalised with further updates to be shared in the coming weeks.
Collins Brands has sold 20 of its Taco Bell restaurants after the brand failed a third attempt to win over the tastebuds of Australian customers.
It will include the transfer of the stores, including employees who accept offers of employment from the new owners.
“We are especially pleased that our team members working in the 20 transitioning Taco Bell restaurants will be offered continuity of employment and job security,” Collin Foods CEO Xavier Simonet said.
“We are committed to ensuring a smooth transition and to supporting all our team, whether transitioning or otherwise, through this process.”
Nicholas Maruff with his Taco Bell order.
Collins Foods will continue to operate Taco Bell restaurants until the deal is finalised.
Taco Bell said the store closures would be part of a “broader network reset designed to strengthen the brand for long term growth”.
“A key priority for Taco Bell and RBA throughout this process will be supporting team members, with both organisations working closely with restaurant teams to ensure a smooth and well-managed process,” the company said in a statement.
“With an exciting future ahead, Taco Bell looks forward to sharing more about its Australian plans soon, as the brand focuses on making Taco Bell more accessible across the country.”