The parent company of Taco Bell Australia has announced plans to either close or sell off its national network of stores.
Collins Foods, which also operates hundreds of KFC locations in Australia, said in a statement to investors it has decided to exit the Taco Bell business.
If a buyer isn’t found within a year, the group said it may consider other “exit options” for Australian Taco Bell stores. There are no plans to close any KFC locations.
“Discussions are currently underway with Taco Bell International (TBI) regarding a potential transition of the business to new ownership,” Collins Foods said in a statement.
“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.”
There are 27 Taco Bell locations across Australia.
The US-owned Mexican fast-food giant first launched in Australia back in 1981, however a Sydney restaurant with the name Taco Bell’s Casa took it to court.
Taco Bell made a second attempt to crack into the Australian market in 1997 but it shut doors again after eight years.
In 2017, Taco Bell made its third and final venture into Australia with plans to open more than 50 stores by late 2021.
Managing director and chief executive Xavier Simonet said Collins Foods will continue to invest in its most successful operation, KFC, including expanding in Germany.
“Collins Foods has successfully operated KFC restaurants for over 50 years, building a reputation as a trusted operator,” Simonet said.
“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 the announcement, former general manager of Taco Bell in Australia Krystal Zugno has been promoted to general manager of Australian operations for both Taco Bell and KFC.
