I have not heard anyone in Australia use "rubbish" that way, but I have heard it from young British people speaking informally - it was used the way you mentioned:
Rubbish food, rubbish town, etc.
I hope a real Brit will come along soon to confirm this.
Edited to say:
We do use the word rubbish to mean garbage/trash, but I don't think we use it in the way British people do, as in "rubbish food".