Fast food operator Restaurant Brands to open Taco Bell in NZ in 'not too distant future'

Wednesday, 18 April 2018

Fast food operator Restaurant Brands wants to introduce a new brand to NZ this year. Will it be Taco Bell?

Taco Bell is set to open its first New Zealand store in the 'not too distant future,' following a long period of speculation.

Restaurant Brands, which owns KFC, Pizza Hutt, Starbucks, Carl's Jr and Taco Bell, announced on Tuesday it will 'introduce a further brand' to New Zealand.

Chief executive Russel Creedy told RNZ on Wednesday that Taco Bell would open in New Zealand soon, following strong sales overseas.

'It's not a matter of if, it's a matter of when … I can see it being in the not too distant future, a year or two, and I'm looking forward to it.'

The New Zealand business had record sales of $421.4 million, up 5.4 per cent, largely driven by New Zealand's love for KFC.

* Restaurant Brands still mum on Taco Bell in NZ**

The company first hinted at bringing the popular Mexican restaurant chain to New Zealand last year, after it took over the Taco Bell and Pizza Hut stores in Hawaii in 2016 for $146 million.

In December, Creedy said a trial Taco Bell store was possible in the New Year following the success of the one Taco Bell in Australia.

However, it is unclear whether that is still on the cards.

Repeated calls to Creedy and the company have gone unanswered.

Retail expert Chris Wilkinson said Restaurant Brands was probably looking to diversify its portfolio and look at the next stage opportunities in New Zealand's 'very competitive' fast food market.

The fast-food category was going through 'significant change' as new competitors, such as Uber Eats, fight to capture the attention and spend of millennials, he said.

'Umbrella operators, like Restaurant Brands, will want to be protective of these markets … by introducing this new brand to New Zealand.'

The company would most likely set up shop in Auckland first, Wilkinson said.

On Tuesday, Restaurant Brands posted a net profit of $35.5 million for the year to February 26, up 36 per cent on the previous year.

The profit reflected of a 49 per cent jump in sales to $740.8m.

The New Zealand business had record sales of $421.4m, up 5.4 per cent, largely driven by New Zealand's love for KFC.

KFC in New Zealand also reached a new milestone, opening its 100th store.

Company-owned stores increased to 94 after opening two new stores in Fort St, Auckland and at Christchurch Airport.

The new Auckland store was a new design, with no drive-through.

'It has significantly outperformed expectations and is likely to be the prototype for a number of similar central city stores in both New Zealand and Australia,' Creedy said.

Chairman Ted van Arkel said sales had almost doubled over the past two years, and there was 'every indication' sale would continue to grow.

The board said Restaurant Brands was on track for its target of $1 billion in sales a year.

Restaurant Brands have 314 stores around the world, including 171 in New Zealand, 82 in Hawaii, and 61 stores in Australia.