Place the bacon in a large skillet and cook over medium-high heat, turning occasionally, until evenly browned, about 10 minutes. Let bacon cool on a plate lined with paper towel.

Drain all but 2 tablespoons fat from the skillet. Stir potatoes, onion, and bell pepper into reserved drippings; season with salt and pepper and cook, stirring every 3 to 4 minutes and pressing the potatoes with the back of a spatula, until potatoes are golden brown and soft, 15 to 20 minutes. Crumble bacon over the potato mixture and stir.