Taco-Bell

PHOTO: Mexican fast-food giant Taco Bell

💔 Say adios to burritos! One household name sealed Taco Bell’s fate in Australia — and it’s not who you think.

A top retail expert has finally spilled the real reason Taco Bell crashed and burned Down Under, and it’s not just about the tacos.

🌼 On Tuesday, Collins Foods — the company behind Taco Bell’s Australian presence — dropped a bombshell 💣 announcing it will exit the business within 12 months. This leaves the future of the chain hanging by a thread as it desperately searches for a new operator.

đŸ‘šâ€đŸ« Professor Gary Mortimer, from Queensland University of Technology, says the cost of living crisis and the domination of local legends Guzman y Gomez and Zambrero made it nearly impossible for Taco Bell to survive.

đŸ˜ïž “They opened in lower-income suburbs where people want big meals at a low price — but those same families are now under serious financial stress,” said Prof Mortimer.

📉 Rising rents, sky-high mortgage payments, and grocery costs have forced Aussie families to ditch takeout and cook at home instead. “If your rent just jumped $200, you’re not spending $60 on tacos,” Mortimer added.

đŸ’„ Taco Bell’s Major Fails in Australia:

  • ✅ Too late to the party: Aussie tastebuds were already loyal to fresher, more “authentic” options like GYG and Zambrero.

  • ⚔ Legal drama: The brand was plagued by courtroom battles with Taco Bill and Taco Bell’s Casa over naming rights since the 1980s.

  • 📍 Poor location strategy: Many stores were in suburbs hardest hit by mortgage arrears — like Blacktown and Narre Warren.

  • 📊 Financial flop: While GYG boomed with a $7.3M profit and 19 new stores, Taco Bell posted a $1.1M loss and couldn’t even hit half its target of 51 stores.

The cost of living crisis has been partially blamed for the demise of Taco Bell in Australia

The cost of living crisis has been partially blamed for the demise of Taco Bell in Australia

đŸ•°ïž Despite first opening in Brisbane in 2017 to massive crowds, Taco Bell’s journey was riddled with legal setbacks, brand confusion, and a rapidly shifting food landscape.

💬 Meanwhile, Guzman y Gomez — now worth a whopping $3.4B on the ASX — had already claimed the throne in Aussie Mexican fast food.

First opening in 2017, Taco Bell stores saw lines out the door for the first few months

First opening in 2017, Taco Bell stores saw lines out the door for the first few months

📉 Taco Bell joins a growing list of U.S. chains, including Carl’s Jr., that have struggled to survive in Australia’s ultra-competitive fast food market.

So what’s next? Collins Foods hasn’t revealed the final cost of their spicy exit, but with 27 stores on the chopping block, the guac isn’t the only thing extra.

SOURCE: THE DAILY MAIL