Taco Bell on the way
Taco Bell’s imminent arrival in New Zealand reflects demand for convenience food in a society that is eating out more, one retail expert says.
The chain’s first two New Zealand stores will open later this year, starting with one in Auckland, Restaurant Brands’ chief executive Russell Creedy has announced. This is part of an ‘‘aggressively-paced’’ roll-out of 60 stores across Australia and New Zealand over the next five years.
A spokesman for the company said it was excited to be bringing the taco chain to New Zealand this year, but wasn’t in a position to confirm locations.
Restaurant Brands’ New Zealand operations had sales of $420 million in the most recent financial year, driven largely by a strong performance from the KFC brand, Creedy said in a statement to shareholders on Wednesday.
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.
Taco Bell sales reached US$72m (NZ$108.2m) for the 2018-2019 financial year, reinforcing Restaurant Brands’ confidence in the brand ahead of its Australasian launch, Creedy said.
‘‘We’re an increasingly convenience-focused society,’’ Retail NZ’s chief executive, Greg Harford, said.
‘‘People want quick and easy access to food, including pre-prepared meals in supermarkets.
‘‘We’re also seeing that in the growth of fast-food services.’’
First Retail Group managing director Chris Wilkinson said Restaurant Brands had probably been waiting to see how its most recent offer, Carl’s Jnr, would bed down before launching Taco Bell.
It was a crowded fast-food market but there was room for Taco Bell because its offer was quite different from ‘‘other
‘‘We’re an increasingly convenience-focused society.’’
Retail NZ chief executive Greg Harford
stablemates’’, Wilkinson said.
Taco Bell sells made-to-order tacos and burritos – which might appeal to people looking for lighter or fresher options, Wilkinson said.
‘‘The road networks that we’re seeing are opening up opportunity for hub sites, like motorway service stops, which will also be options for fast-food outlets,’’ he said.
Restaurant Brands also announced they would open another 30 KFC stores across Australia and New Zealand.
Taco Bell would pose a competitive but not an existential threat to local fast-food brands such as Burger Fuel and Hell Pizza, Harford said.
Because the market was growing, there was room for new players, he said.
But the increased diversity of food on offer showed that the New Zealand market had high expectations, Wilkinson said.
Despite this, Restaurant Brands understood the New Zealand market, and the new offering should do well.
Restaurant Brands said it would take several years for the brand to make a significant contribution from the Australian and New Zealand markets.