Taco Bell’s NZ stores unaffected by Australian operator’s exit plan, Restaurant Brands confirms

Taco Bell’s New Zealand stores are safe amid Collins Foods' planned exit from the franchise in Australia, Restaurant Brands has confirmed. Photo / 123RF

• Collins Foods plans to exit Taco Bell in Australia, citing poor performance against local rivals.
• Restaurant Brands confirmed its 17 Taco Bell stores in New Zealand are unaffected and performing well.
• Collins Foods seeks a new owner for its 27 Australian Taco Bell stores within 12 months.

As Taco Bell’s main operator in Australia looks to sell or close all of its 27 stores in the country, Restaurant Brands - New Zealand’s exclusive franchisee - has confirmed its network of stores in Aotearoa and Australia remain safe from any changes.

Collins Foods, an ASX-listed Australian operator of the global chain, told investors in a statement on April 15 that it plans to exit the Mexican fast-food business, citing poor performance in a market dominated by Australian-owned rivals, Guzman y Gomez, Zambrero and Mad Mex.

When asked whether its New Zealand operations faced a similar situation, Restaurant Brands confirmed all 17 of its Taco Bell stores in New Zealand were unaffected by the announcement across the ditch.

“Taco Bell continues to perform well in New Zealand, delivering growth in same-store sales, and it has solidified its presence in the market with Kiwi consumers,” the company told the Herald.

“We’re excited about the brand’s future and remain focused on expanding access for its growing fan base across the country.”

In contrast, Collins Foods saw a 2% drop in revenue at its Taco Bell Australia locations in the first half of the 2025 fiscal year, while same-store sales grew by only 0.3% over the same period.

A Taco Bell restaurant on Cuba Street in Wellington, one of 17 operated by Restaurant Brands in New Zealand. Photo / Getty Images

There are 39 Taco Bell locations in Australia, with 27 operated by Collins Foods. Restaurant Brands runs the remaining 12, mainly in New South Wales.

The company acknowledged it operates stores within the same market as Collins Foods, but said the Brisbane-based company is a “completely separate organisation”.

“We’re not in a position to comment on their decision, but it has no impact on or association with our operations in NZ or Australia,” Restaurant Brands said.

Collins Foods’ decision to exit the Taco Bell business was announced by its newly-appointed chief executive and managing director, Xavier Simonet, as part of a strategic review into its global operations.

Collins Foods told investors it hopes to find a new owner for its Taco Bell stores, and “intends to complete the transition within the next 12 months”.

“If a new operator cannot be identified and/or an agreement cannot be reached, other exit options will be explored,” the company said in a statement.

Restaurant Brands owns at least 155 KFC, Pizza Hut, Taco Bell and Carl's Jr outlets across New Zealand. Photo / Luke Kirkness

The strategic review also announced Collins Foods’ intentions to continue expanding the KFC brand in Australia while capitalising on growth opportunities in Europe.

As of October 2024, Collins Foods owned 285 KFC stores out of the 750 in Australia overall. The review said it hopes to drive growth both through increasing same-store sales and opening new restaurants.

Meanwhile, the company said KFC is “underpenetrated” in Germany’s market. It plans to open between 40 to 70 new stores in the country over the next five years, on top of the 16 it currently operates.

Collins Foods’ shares fell sharply on the day of the announcement and now sit at AU$7.99, an 8.16% drop at the time of writing.

Tom Rose is an Auckland-based journalist who covers breaking news, specialising in lifestyle, entertainment and travel. He joined the Herald in 2023.