Expanding KFC names new franchisee here
YUM BRANDS INC, the US-based owner of fast food giant KFC, yesterday announced the appointment of its new franchisee in Thailand - Restaurant Development Company Limited.
Under the deal, RDCL will acquire 130 existing KFC restaurants in greater Bangkok and Southern Thailand and renovate the restaurants.
The company also plans to open 100 KFC restaurants throughout the Kingdom by 2020.
The deal will support KFC’s growth strategy of perating 800 stores in Thailand by 2020, or an additional 215 stores on top of the current number.
RDCL is a fully registered Thai company with its headquarters in Bangkok that will initially employ more than 3,000 staff. It is a joint venture comprising Thai and Asian investors and has appointed a management team led by the Asean Industrial Growth Fund Pte Ltd (AIGF), whose backers include the Mitsubishi Corporation and the Development Bank of Japan.
On day one of the franchise agreement with KFC, RDCL will become one of the largest and fastest growing operators of quick service restaurants (QSR) in Thailand.
“Last May, KFC Thailand announced our 800-store-growth strategy through active innovation and recruitment of a new franchisee,” said Waewkanee Assoratgoon, general manager of KFC at Yum Restaurants International (Thailand). “Today’s exciting announcement is a big step towards this goal which will be hugely beneficial for our customers, our team members and our partners. Our strong partnerships will drive KFC Thailand onto even greater success.
“KFC welcomes the Restaurant Development Company Limited as a new franchisee due to their passion for food, financial capability, professional experience within QSR in Asia, and their commitment to grow the KFC brand.
Andrew Norton, CEO of RDCL and a 13-year veteran of QSR industries in Thailand and Australia, added: “I am excited to have this tremendous opportunity to expand this outstanding brand together. We have a strong organisation, the financial resources and entrepreneurial vision to help KFC Thailand achieve its goals and we look forward to a bright future. We will ensure faster KFC growth than ever before.”
The announcement follows an extremely successful 2016 for the KFC brand, which is dominating the Thai QSR market with a 65 per cent market share, according to Millward Brown’s brand tracking study for 2016 quarter one.
The company has surpassed its projected sales targets for the year, despite a slowdown in its QSR industry growth. KFC is already on a robust development path with approximately 35 restaurants planned to be built in 2016. KFC expects to have 585 stores by end 2016.
Development programme
The rapid growth of KFC |will be bolstered by its store development programme with RDCL. Incorporating the additional 215 KFC Thailand stores by 2020 will add an estimated 6,500 jobs to the Thai employment market.
“This agreement is hugely positive for KFC Thailand’s customers and employees. There will be more products, services and modern restaurants to enjoy. KFC is growing rapidly and will continue to do so. This is testament to our strong fundamentals and dedicated partners. We are excited about our future opportunities that will enable greater expansion and continued consumer innovation,” Waewkanee said.
There were 550 KFC restaurants were operating in the Kingdom at the end of last year, of which 345 were operated by Yum Restaurants International (Thailand) and another 205 restaurants were run by it franchisee Central Restaurants Group (CRG).
Of the 585 KFC restaurants expected to be operational by the end of the year, 217 will be operated by CRG, 238 by Yum Restaurants and 130 by RDCL. The average investment per one restaurant branch will be at between Bt15 million and Bt30 million.
