Taco Bell vs Taco Bill: Mexican standoff over naming rights brews in Australia

An Aussie fast food operator is taking on an American giant that wants to expand its operations here, in a classic David and Goliath battle.

An old feud over Tex-Mex naming rights has been revived with the Aussie franchisor of Taco Bell being taken to court by Taco Bill – a Victorian-focused fast food rival.

The ASX-listed Collins Foods announced on Monday that Taco Bill Mexican Restaurants Australia was seeking to prevent it from bringing Taco Bell to Victoria and southern NSW, on the basis that its customers will be misled or deceived to believe that the two are affiliated.

The two parties have previously met in court in similar circumstances, including when Taco Bell was making its second failed attempt to crack the Australian market in the 1990s.

Collins, which is Australia’s largest KFC operator and also manages the dwindling local Sizzler presence, said it would defend the Federal Court claim with strong support from the global Taco Bell.

“(Taco Bill) has not quantified their claim and … does not seek any urgent orders to prevent Collins Foods from opening Taco Bell restaurants in Victoria,” Collins said in a release to the ASX.

Taco Bill Group CEO Tom Kartel. Picture: Chris Eastman

One of Taco Bill’s 32 outlets. Picture: Steve Tanner

According to Taco Bill’s website, it has 32 outlets in Victoria and one in Albury on the NSW-Victoria border.

The chain says it was founded by ‘Taco Bill’ Chilcote, who came to Australia in 1966 from the border of Mexico and California “with just a corn grinder and a tortilla machine” to give the country its “first introduction to Mexican cuisine”.

Taco Bell on its official opening in Townsville. Picture: Matt Taylor

Collins Foods said Taco Bell was founded by Glen Bell in California in 1962, with more than 7,100 restaurants now operating worldwide.

Collins opened four Taco Bell stores in Australia during its last financial year – all in Queensland – and in June flagged plans to open 10 more by the end of 2019, including in NSW, and 110 stores by 2024.

The latest rollout of the Taco Bell brand was set to extend to Victoria in early 2020.

US chain Taco Bell plans to open 110 outlets in Australia by 2024. Picture: AP

Taco Bell is in the throes of its third crack at Australia, the first of which failed in 1981 after a Sydney restaurant called Taco Bell’s Casa took it to court over its name.

Its second attempt in the late 90s failed even though it managed to register its trademark in Australia, a development that locked it and Taco Bill in a four-year legal stoush.

Taco Bill has been contacted for comment.

– AAP