Fast-food chain’s Australian exit: What it means for fans

A fast-food favourite might be saying ‘goodbye’ to Australia, and loyal fans are starting to take notice. 

The American-born chain, known for its crunchy tacos and late-night appeal, is facing a bumpy road ahead as its local operator, Collins Foods, signals plans to offload the brand.

The announcement has raised eyebrows across the quick-service restaurant landscape, with speculation brewing about what led to the sudden shift—and what’s next for the Tex-Mex giant on Aussie soil.

Falling Flat in a Competitive Market

Despite Taco Bell’s international popularity, its Australian performance hasn’t met expectations. 

Industry sources reveal that Collins Foods, which also operates KFC in Australia and Europe, is preparing to exit the Taco Bell business altogether. 

With just 27 stores nationwide, the brand struggled to gain the same traction as homegrown heavyweights like Guzman y Gomez, whose rapid expansion and strong local following have put pressure on competitors.

‘In a challenging economic environment, the customer remains at the heart of our business,’ said Collins Foods CEO Xavier Simonet. 

‘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.’

Numbers Tell the Story

According to Collins Foods’ half-year financial report submitted to the ASX, Taco Bell’s revenue dipped by around 2 per cent. 

Though that might seem minor at first glance, it’s a red flag in a climate where even small losses can trigger significant strategy changes.

The brand’s exit isn’t just about underperformance but realigning priorities. Collins Foods says it’s actively negotiating with Taco Bell’s U.S. parent company to transfer operations sometime in 2025.

Expansion Elsewhere, Retrenchment at Home

While Taco Bell faces a possible farewell in Australia, Collins Foods pushes full steam ahead in other markets. Plans are in motion to open up to 70 new KFC outlets in Germany over the next five years. 

At the same time, the company will shutter underperforming stores in the Netherlands, a move expected to cost $32.7 million.

The message is clear: Collins Foods is doubling down where it sees promise—and letting go where things just didn’t work.

‘We remain laser-focused on delivering operational excellence in our core market, Australia, where we continue to successfully adapt to a dynamic consumer landscape,’ Simonet explained. 

What This Means for Aussie Fast-Food Fans

Taco Bell’s potential departure could leave a noticeable gap for local fans who embraced its affordable, quirky menu. 

While never as widespread as McDonald’s or Hungry Jack’s, the chain carved out a niche among younger foodies and curious newcomers looking for something a little different.

The looming exit raises bigger questions, too. Are Australian consumers simply not enjoying American fast-food brands the way they used to? Will other international chains take this as a warning sign before launching locally?

The Bigger Picture

In a climate where rising costs affect everything from lettuce to labour, it’s becoming harder for new players to compete without serious brand loyalty or an unbeatable value proposition. 

As the dust settles, the story of Taco Bell in Australia could serve as a cautionary tale for other international names looking to plant roots down under.

Have you tried Taco Bell in Australia? Will you miss it if it goes? Let us know your thoughts in the comments.

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