More Yum restaurants in China, India
Yum! Brands is demonstrating its confidence in China and India with plans to speed up the pace of expansion in both markets.
Prompted by strong performance in the third quarter, Yum said it will increase store openings in China. This year, it will open 750 restaurants across the mainland, higher than the 700 it announced earlier.
The US-based owner of KFC, Taco Bell and Pizza Hut reported a 22 per cent sales increase in its China division amidst economic slowdown.
“As I’ve said before, China is going to have its inevitable ups and downs. We now face a slowing economy. But that doesn’t change our long-term outlook in China. Our annual performance has been pretty consistent, and I expect this to continue,” said Yum chairman and CEO David Novak.
This year will also see Yum opening additional 100 restaurants in India as part of the company’s goal to reach 1000 restaurants by 2015.
The company says it will invest US$100 million on four to five year expansion program in India, capitalising on the country’s growing middle class.
India’s fastfood industry is forecasted to grow at an annual rate of 34 per cent from 2011 to 2014, according to data from research firm RNCOS.
“We’re an economy driven on the back of domestic consumption expenditure and therefore, as we have seen, we are likely to continue to be resilient even in the face of a global slowdown,” said Niren Chaudhary, president, Yum India.
Yum has 4952 restaurants in China and 495 in India.