It seems like KFC is looking to follow the global strategy as Devyani International has bought 61 more outlets of Yum Brands’ KFC India for an undisclosed amount. After this deal, less than 10% of KFC India’s outlets across India are now company-operated.
The reason behind this exit
With this, KFC is following its global strategy to exit capital-intensive operations and focus on brand growth and development. Indian is a very competitive market and it is very difficult to remain profitable with so much diversity of customers.
What experts say
“We continue to re-evaluate ownership strategy as part of an annual process and in line with business growth. The strategic intent is to unlock growth for the brand,” KFC India managing director, Samir Menon, told ET.
Note that, Pizza Hut, which is Yum’s other brand in India is already fully franchised. Devyani is Yum’s oldest franchise partner in the country having 500 KFC and Pizza Hut outlets.
“KFC is one of the fastest-growing brands in our portfolio. Our partnership with Yum is driven by a commitment to build the brand by expanding geographic presence and driving world-class operations,”
Virag Joshi, Devyani’s chief executive, told the ET.
Quote Source: ET
Over 98% of the KFC’ business globally is now operated by independent franchise owners.
Also Read: Ford To Exit Indian Market & Partner With Mahindra For A Joint-Venture
