Collins Foods to restructure leadership and refocus global operations after review of KFC and Taco Bell businesses

Restaurant operator Collins Foods (ASX: CKF) has completed a strategic review of its global fast food business, resulting in new initiatives and changes to the management line-up.

The review found that Australia remains a highly profitable market and Collins has committed to driving growth organically (through same-store sales) and via new restaurant openings.

While making numerous changes, the company will continue its partnership with Yum! Brands—through which it operates the group’s network of KFC and Taco Bell outlets in Australia, Germany and the Netherlands.

Management changes

Collins has announced that chief executive officer (Europe) Hans Miete will step down from the role after four-plus years.

The company has appointed current chief operating officer (Europe) and former Yum! executive Chris Johnson acting general manager while a full-time replacement is sought.

In the company’s Australian division, chief operating officer (KFC Australia) Helen Moore has stepped down after almost four years with the business and the division’s previous interim general manager, Krystal Zugno, will step into the role.

Trusted operator

Collins managing director Xavier Simonet hoped the new management structure would enhance the company’s reputation as a trusted operator.

“Collins has successfully operated KFC restaurants for over 50 years and these initiatives will provide us with strategic clarity and renewed purpose in a challenging economic environment,” he said.

“We remain laser focused on delivering operational excellence in our core markets and high-quality food at accessible prices, leveraging the heritage of the KFC brand at a time when consumer trust has never been more important.”

German agreement

Collins has entered into a binding agreement with Yum! to accelerate its growth in Germany’s market of over 80 million consumers.

The company currently operates 207 KFC restaurants in the country but believes the brand still presents a significant growth opportunity.

Collins plans to open as many as 70 new KFC restaurants across Germany over the next five years and has received a period of exclusivity to operate in the North Rhine-Westphalia and Baden-Württemberg regions that house 35% of the nation’s population.

Mr Simonet said Collins expects Germany to become the company’s second strategic growth pillar.

Netherlands portfolio

Cost-of-living pressures, labour inflation and development constraints have impacted the quick service restaurant sector in the Netherlands and the profitability of Collins’ regional portfolio.

In response, Collins has committed to focusing on operational excellence to lift same-store sales performance and drive cost efficiencies and align its restaurant development plans in the short term to better reflect the challenging conditions.

The company is expecting a partial impairment of its Netherlands portfolio during the 2025 financial year, estimating the non-cash impact to be between $25.5 million and $32.7m.

Taco Bell exit

Collins has also confirmed plans to exit its Taco Bell business.

The company is in discussion with Taco Bell International regarding a potential transition to new ownership over the next 12 months.

If a new operator cannot be identified or an agreement cannot be reached, the company will explore other exit options.