Taco Bell’s latest push in Australia is getting a major overhaul after Collins Foods announced it will transfer ownership of 20 of its 27 restaurants to Restaurant Brands Australia, while shutting down the remaining seven locations. The move gives the struggling chain a path forward after more than a year of uncertainty over whether Taco Bell would leave the Australian market entirely.
According to Yahoo! Finance, Collins Foods, the Australian operator behind both Taco Bell and KFC, said the agreement is part of its previously announced plan to step away from Taco Bell and focus more heavily on KFC operations in Australia and Europe.
Restaurant Brands Australia, a longtime partner of Taco Bell parent company Yum! Brands, will assume control of the 20 remaining stores pending regulatory approval. The transaction is expected to be finalized by August, and employees at those locations will be offered new jobs under the new ownership structure.
The decision marks another difficult chapter in Taco Bell’s long and uneven history in Australia. The chain first attempted to enter the country in the 1980s, returned in the late 1990s, and launched its latest comeback in 2017 with plans to build more than 50 stores nationwide.
Instead, Taco Bell struggled to keep pace with homegrown Mexican-inspired chains like Guzman y Gomez, which has built a much larger footprint and stronger brand recognition across Australia.
Collins Foods said Taco Bell’s softer sales and intense competition made the business increasingly difficult to sustain.
In a statement, Collins Foods chief executive Xavier Simonet said the company was pleased to secure a future for most of the restaurants while protecting jobs. “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,” Simonet said.
He added that the deal would allow Collins Foods to “sharpen its focus” on KFC and accelerate expansion in Germany, where the company plans to open dozens of new restaurants over the next five years.
The financial picture helps explain why Collins was ready to move on. Taco Bell revenue in Australia slipped nearly 4 percent in the first half of fiscal 2026, while the division generated only about $500,000 Australian in profit.
By comparison, Collins Foods’ Australian KFC business brought in more than $563 million Australian during the same period.
Even with seven closures on the way, Taco Bell executives insist the shake-up is meant to preserve the chain, not permanently shrink it. Taco Bell Australia general manager David Mantellini called the agreement “an important moment” for the brand and said the partnership with Restaurant Brands Australia will help make Taco Bell “more accessible across the country.”
The company has not yet revealed which seven locations will close.
