FOR WHOM THE BELL TOLLS

With its booming Brisbane restaurants leading the Aussie expansion, US giant Taco Bell is proving third time really is the charm.

How Taco Bell is targeting Australian expansion.

It’s been a s top-start introduction for the global franchise icon here in Australia. Highly documented entries in the 1980s and the early 2000s were met with little interest from locals, but here in 2019, things are changing.

“Well I think firstly, the category has evolved significantly,” Taco Bell Asia Pacific managing director Ankush Tuli says.

“The consumer is far more ready now; more ready to experiment and hungry to try new cuisines and formats.”

Tuli isn’t alone in his thinking. Over the past five years, interest in ethnic fast-food chains has risen steadily, with consumers more open to the idea of unfamiliar flavours than ever before.

According to a study from global research company NPD, ethnic restaurants account for almost $6 billion of consumer spending within the $44 billion Australian foodservice industry, an increase of nearly $700 million since 2009.

That isn’t to say that Tuli and Taco Bell haven’t refined their offering, however.

The APAC managing director reveals that this time around, the brand is implementing a considered approach to the often-fickle Australian consumer.

“We really came at it this time with the intention of making sure we laid a really solid foundation. That has led to some exciting growth, we’ve found the perfect partners in Brisbane and that success has given us the confidence to expand into other areas.”

The chain launched its third Aussie incarnation in Queensland in 2017, with an understated opening that largely escaped the public’s attention. It was a deliberate strategy to test the waters, Tuli says, and now, two years and five restaurants later, the brand is entering a national roll-out phase.

AUSTRALIAN EXPANSION

“Taco Bell’s unique offering of Mexicaninspired food has really resonated with the Australian public,” Tuli explains.

“Our unique positioning as a culture-centric, lifestyle brand, where we showcase the social experience of food is sinking in. Australians are really loving it this time around.”

Since August, Taco Bell has been slowly leaking information through its social media channels, teasing Aussie fans with a taste of things to come.

“Our fans have been appealing for us to get down to Melbourne and Sydney since we arrived in Australia, so we’re delighted to now be able to answer those requests,” Tuli beams.

“We have stated before that Australia is a key focus area for us, and I really believe that the region will be one of the largest and fastest-growing markets for Taco Bell internationally. The numbers are out there, our target is to reach 100 restaurants in Australia and New Zealand over the next five years, and we have the momentum to do it.”

It’s an ambitious goal, but one that Tuli believes the APAC team of office staff and partners are more than capable of delivering.

“In conjunction with our highly capable partners, fans will continue to enjoy the experience that they have come to expect from Taco Bell, as well as some majorly disruptive category-leading innovations. We are very excited about this next stage, but more, we are very well positioned to make it happen.”

When Taco Bell launched in Brisbane in 2017, the US franchisor partnered with local operator Collins Foods Limited, a company famous for its work with fellow casual dining chains Sizzler and KFC.

As the expansion plans have developed, the brand has also enlisted the help of

New Zealand-based operator Restaurant Brands, which Tuli says has been instrumental to the new Victorian and New South Wales growth.

“Our success has come off the back of the great partners that we have in Collins Foods and Restaurant Brands, so the timing couldn’t be better to kick off the next stage,” he says.

Unlike the initial Brisbane roll-out, however, that next stage is far from slow and steady. Tuli reveals that he plans on opening 30 new restaurants across Australia and New Zealand over the next

12 to 18 months, and he has history on his side.

INTERNATIONAL GROWTH

The APAC managing director has been instrumental in the expansion of Taco Bell across a number of other regions.

“Within the Asia Pacific, the underlying demographics provide massive potential for Taco Bell to expand,” he says.

Tuli reveals that the chain now has 40 restaurants in India, with that number likely to reach 60 before the end of 2019. In fact, India has now grown to become Taco Bell’s fast-growing market outside of the US, with a new restaurant opening every 10 days.

Couple that with a successful entry into Thailand and a planned expansion through Indonesia, and it seems like the entire region is set for a franchise fiesta.

In fact, outside the US, the APAC region is the biggest opportunity for the booming fast-food chain.

“Earlier this year, we achieved a significant milestone, opening our 500th restaurant outside the US, and we are well on our way to reaching 1000 in the next few years,” Tuli reveals.

International growth has not come without its challenges, however. Taco

Bell’s previous attempts at Australia are a testament to that, but a renewed focus on brand offering has helped to streamline new market growth.

“We’ve been far more intentional in making sure our proposition is right; that we can provide an offering that is not just internationally consistent, but locally relevant,” Tuli says.

“In all stores across the world, you’ll see the four major offerings are the same, with iconic products like the crunch-wrap, but equally, we tweak them in line with our consumer research.”

In India, a market with a strong vegetarian customer base, Taco Bell introduced a taco that is made entirely out of hash brown.

Revamping the model to suit the individual needs of a domestic market isn’t easy, particularly for a chain as large as

Taco Bell, but Tuli says understanding the world in which you operate is critical.

“When you enter a restaurant in Brisbane, you really see that culture and lifestyle experience come to life. We have local artists come and express themselves, and as a result, consumers are far more open and engaged.”

“The lessons have been similar across markets. The timing is right, consumers have evolved, not just in Australia but across the world.”

Despite the enormous success of Taco Bell on the international market however, Tuli says the biggest opportunity lies Down Under.

“Above all, the thing I’m most excited by is the response we have received in Australia. Our restaurants in Brisbane are among the highest performing in the world, so there’s a lot of excitement around our growth. It’s a really exciting time for Taco Bell.”