KFC India to sell 61 another stores
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.”
“At this point, there is no intent to set up more equity restaurants, unless the market dynamics demand,” he added.
“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.