Hundreds of workers across Australia have been left uncertain about their future after seven restaurants operated by Collins Foods under the Taco Bell brand were suddenly slated for closure. The move comes as the company restructures its fast-food operations and exits the struggling Tex-Mex chain in Australia.
The closures are part of a wider deal in which 20 of the company’s 27 Taco Bell locations will be transferred to Restaurant Brands Australia, which already runs several Taco Bell outlets in New South Wales. However, the remaining seven stores will shut down entirely in the coming weeks.
Workers Left Waiting for Answers
The sudden announcement has left hundreds of employees unsure about their job security. While workers in the 20 stores being transferred may receive employment offers from the new operator, staff at the seven locations facing closure are still waiting to learn what will happen next.
Company officials say they will try to support employees during the transition, but many workers remain in limbo until final decisions are made about the affected locations.
Why the Restaurants Are Closing
The closures highlight the ongoing struggle of Taco Bell to gain a strong foothold in Australia. Despite several attempts over decades, the brand has repeatedly faced challenges attracting local customers.
Financial performance also played a role. Collins Foods reported that revenue from its Taco Bell business fell about 3 percent to roughly $23.6 million in the first half of the financial year, with profits remaining extremely small.
Because of these weak results, the company decided to exit the business and focus on its more successful operations, particularly its extensive network of KFC restaurants in Australia and Europe.
What Happens Next
The transition deal is still being finalized and is expected to be completed later in 2026. Until then, Collins Foods will continue running the restaurants while ownership arrangements are completed.
Meanwhile, Taco Bell says the closures are part of a broader “network reset” designed to strengthen the brand’s long-term presence in Australia. The company also signaled that it still plans to expand in the country under the new partnership structure.
Bigger Picture for Australia’s Fast-Food Industry
The sudden closures underline the fierce competition in Australia’s fast-food market. Global brands must compete not only with established giants but also with strong local food culture and changing consumer tastes.
For now, though, the biggest concern is for the workers whose livelihoods depend on the affected restaurants. Until the ownership transition is finalized, hundreds of Taco Bell staff across Australia remain uncertain about their next move.