KFC India to sell 61 another stores
In this article (5)
KFC India will offload 61 equity-owned restaurants to Devyani International as part of its international strategy to withdraw from capital-intensive operations while further developing its brand.
Devyani, KFC owner Yum!’s biggest franchise partner in the territory, will take over the locations in Karnataka, AP and Telangana, dropping Yum!’s company-operated KFC locations within India to less than 10 per cent. Yum!’s other brand in India, Pizza Hut, is already fully franchised out, and Devyani operates almost 500 outlets under both brands in India.
“We continue to re-evaluate ownership strategy as part of an annual process and in line with business growth,” said KFC India MD Samir Menon. “The strategic intent is to unlock growth for the brand.”
“KFC is one of the fastest growing brands in our portfolio,” commented Devyani’s CEO Virag Joshi. “Our partnership with Yum! is driven by commitment to build the brand by expanding geographic presence and driving world-class operations.”
More than 98 per cent of KFC’s 140-country international store network is operated under franchise agreements.
Questions & Answers
Q.What is KFC India's primary reason for selling these 61 restaurants?
What is KFC India's primary reason for selling these 61 restaurants?
KFC India is divesting these equity-owned restaurants as part of an international strategy. It aims to withdraw from capital-intensive operations while continuing to develop its brand within the territory.
Q.Which regions in India are affected by this sale of restaurants?
Which regions in India are affected by this sale of restaurants?
The 61 restaurants being offloaded to Devyani International are located in the Indian states of Karnataka, Andhra Pradesh (AP), and Telangana. These are the specific areas mentioned in the article.
Q.How much of KFC's international store network is operated through franchise agreements?
How much of KFC's international store network is operated through franchise agreements?
More than 98% of KFC's international store network, which spans 140 countries, is operated under franchise agreements. This demonstrates a global preference for the franchise model.
Q.How does this sale align with KFC India's future ownership strategy?
How does this sale align with KFC India's future ownership strategy?
KFC India's MD stated there is currently no intent to establish more equity restaurants, unless market dynamics change. This move is part of an annual re-evaluation of their ownership strategy.
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