Global fast food restaurant company Yum Brands, the parent company of Kentucky Fried Chicken (KFC), plans to increase the number of KFC stores in Africa to around 1 000 by the end of this year.
There are already almost 900 KFC stores across the continent, of which 660 are in South Africa.
In November, Yum bought back 68 KFC franchise stores across Johannesburg, Bloemfontein and Kimberley from South African company Kumnandi Food, as part of its African expansion plans.
“Africa has become a popular investment prospect globally and the KFC organisation has the added advantage of having a strong brand operating on the continent. The decision to acquire the stores was taken to facilitate business in Africa.
“We believe owning and operating stores in South Africa will not only benefit the country but also provide a base to accelerate the development of our well-received brand throughout Africa,” states KFC Africa MD Keith Warren.
He notes that the acquisition is a clear demonstration of the fast food company’s commitment to making meaningful economic contributions to the markets it operates in, and adds that the investment by Yum shows that South Africa and the rest of Africa offer the global company good opportunity for expansion.
Warren adds that the acquisition of the stores means that Yum, for the first time in ten years, owns equity in its own restaurants in Africa.
“The expansion into Africa is aimed at tapping into a rising middle-class market with strong economic growth potential, as there is a move towards a stable salaried job culture and away from traditional agricultural activities,” says Yum Brands GM for new African markets Bruce Layzell.
KFC intends to accelerate the development of its brand and business rapidly through the building of new stores, with the consequent creation of jobs, infrastructure and supply chains.
The fast food chain
Category: Africa News