Taco Bell's Australia exit cancelled: A last-minute deal just saved the brand

Taco Bell Australia operator Collins Foods has successfully sold its restaurant holdings to a new operator one month before its self-imposed exit deadline.

The American-owned Mexican fast food chain will be taken over by Restaurant Brands Australia Holdings Pty Limited (RBA) in a move that will potentially keep the struggling fast food outlets in Australia around "for the long term".

RBA will take over 20 stores currently operating across the country, while seven will close as part of a broader network reset "designed to strengthen the brand for long-term growth."

Details of new locations are yet to be confirmed, with further updates expected over the coming weeks.

David Mantellini, General Manager of Taco Bell Australia, said in a statement: "This is an important moment for Taco Bell in Australia.

"We strongly believe in this market and are excited about the future with a clear focus on growing the brand to bring more Taco Bell restaurants to more Australians.

"This new partnership with RBA reinforces that we are here for the long term.

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"The proposed transaction is subject to RBA and Taco Bell finalising the terms of the partnership arrangement, obtaining regulatory approvals and other customary conditions."

Until completion, Collins Foods will continue to operate Taco Bell restaurants as usual.

This news comes after Collins Foods, which also operates hundreds of KFC locations in Australia, announced plans to exit the Taco Bell business in April 2025.

The company stated if a buyer for Taco Bell Australia wasn't found within a year, the group would consider other "exit options" for Australian Taco Bell stores.

There are currently 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.

Restaurant Brands is a long-term global partner of Taco Bell's parent company, Yum! Brands, and currently operates Taco Bell restaurants across New South Wales, as well as in several international markets.

The company also manages a substantial portfolio of restaurants for other major global food brands, both in Australia and abroad.

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