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An update from Eastgate Shopping Centre said construction of the building started on Tuesday.
It is next to a KFC, and within 200m of McDonald and Burger King. The restaurant is expected to open in the middle of next year.
Taco Bell is owned by Restaurant Brands in New Zealand, which also owns and operates KFC, Pizza Hut and Carl's Jr.
The company opened its first Taco Bell in New Zealand seven months ago in New Lynn, Auckland.
The store has proven to be hugely popular - and in its first two months made $700,000 in sales.
A second Auckland Taco Bell store was opened in June last year.
Restaurant Brands is set to spend at least $65 million on its Taco Bell roll-out in Australasia over the next five years.
The Christchurch restaurant opening will be the third of a planned 60 across New Zealand and Australia over the next five years.