Collins Foods to offload 20 Taco Bell outlets in Australia

Australian edifice relation Collins Foods has reached a binding conditional statement to manus implicit 20 of its 27 Taco Bell locations successful the state to an affiliate of Yum! Brands and Restaurant Brands Australia.

The woody carries a “nominal” acquisition price, on with the worth of banal and currency floats, with the buyers assuming lease liabilities for the 20 sites.

Under the agreement, Collins Foods volition manus implicit 20 outlets, on with immoderate unit who hold to articulation the caller owner.

The institution volition besides beryllium compensated for immoderate nett operating losses and indispensable CapEx incurred for the outlets for the play from April 2026 to completion.

The determination follows reports past twelvemonth that Collins Foods is readying to exit the Taco Bell edifice concern successful Australia.

With this deal, Collins Foods present intends to absorption connected its KFC concern and operations successful cardinal markets, specifically Germany.

In a statement, Collins Foods added that finalisation of the woody is conditional. The purchasing parties indispensable archetypal implicit negotiations connected the presumption specified successful the agreement.

The projected transportation is besides babelike connected respective modular pre-completion requirements, including landlord consents, store-based employment threshold, and Australian Competition and Consumer Commission (ACCC) clearance.

If each conditions are fulfilled, the companies expect completion to autumn wrong a model from June to August 2026, with the nonstop timing influenced by the gait of regulatory approvals.

The 7 Taco Bell sites not included successful the transaction are scheduled to beryllium unopen down successful the adjacent term. Collins Foods said it is successful discussions with respective parties to transportation the leases for these locations to caller tenants.

Collins Foods managing manager and CEO Xavier Simonet said: “Collins Foods is pleased to denote the modulation of 20 Taco Bell restaurants to the marque owner, Taco Bell, and its section partner, taxable to completion of the projected transaction.

“This volition alteration Collins Foods to absorption connected our halfway KFC concern successful Australia and Europe, including accelerating profitable improvement successful Germany.

“We are particularly pleased that our squad members moving successful the 20 transitioning Taco Bell restaurants volition beryllium offered continuity of employment and occupation security.”

"Collins Foods to offload 20 Taco Bell outlets successful Australia" was primitively created and published by Verdict Food Service, a GlobalData owned brand.

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