Retail News CRM

Tag: KFC

  • KFC China Rides High on Delivery Boom, Yet Battles Margin Squeeze

    KFC China Rides High on Delivery Boom, Yet Battles Margin Squeeze

    The surge in food deliveries is significantly transforming KFC China, the country’s top restaurant brand, leading to increased sales but tighter profit margins.

    Delivery sales for the brand witnessed a year-on-year growth of 33%, making up approximately 55% of total sales, a significant increase from 43% the previous year, according to parent company Yum China.

    Adrian Ding, the CFO of Yum China, communicated to investors during the earnings call that they consider this a sustainable trend.

    Despite Yum China’s same-store sales remaining constant, the launch of new outlets increased sales by 4%, and the operating profit rose 12% to US$447 million.

    The food delivery sector in China has seen fierce competition in recent times. E-commerce powerhouses Alibaba and JD have been actively striving to dominate the market share by offering enticing deals and discounts on a variety of menu items, including ice cream, takeaway coffees, and KFC’s signature fried chicken.

    A trend referred to as “instant retail,” which involves delivery of goods within an hour, has attracted the attention of Chinese regulators. They have consistently cautioned against extreme competitive practices among food delivery firms.

    While the growth in deliveries has boosted sales, it has also put pressure on profit margins since Yum China subsidizes them in collaboration with tech companies. Ding indicated that margins would have contracted by 190 basis points due to the increased costs associated with delivery drivers. However, about half of this impact was offset by operational improvements in other areas of the business. The company anticipates a margin expansion throughout the entire year.

    During the earnings call, company executives noted that subsidies for delivery apps have recently decreased, and these apps are now focusing more on larger food orders. “We appreciate this shift and believe it will positively impact our industry in the long run,” stated CEO Joey Wat. The executives also shared that delivery driver expenses account for approximately 30% of the company’s labour costs. Yum China also operates the Chinese divisions of Pizza Hut, Taco Bell, and other restaurants.

    Questions & Answers

    How much have delivery sales grown for KFC China?
    Delivery sales for KFC China have grown by 33% year-on-year.

    What is the impact of the growth in food deliveries on Yum China’s profit margins?
    While the surge in food deliveries has led to increased sales, it is also exerting pressure on profit margins due to the company’s decision to subsidize them.

    What percentage of labour costs at Yum China is attributed to delivery driver expenses?
    Delivery driver expenses account for roughly 30% of the company’s labour costs.

  • US-Based Carlyle Group Acquires KFC Korea: Sets Sight on Nationwide Expansion

    US-Based Carlyle Group Acquires KFC Korea: Sets Sight on Nationwide Expansion

    The US-based private equity firm, The Carlyle Group, has successfully acquired KFC Korea. With this acquisition, the firm aims to expand the existing 200-store portfolio of the popular restaurant chain in South Korea.

    The deal, which was initially announced in December, has now been finalized, with Carlyle gaining full ownership of KFC Korea. KFC Korea operates in South Korea under a master franchise agreement with Yum! Brands. The Carlyle Group bought the stake from Orchestra Private Equity.

    Envisioning Growth and Expansion

    John Kim, a partner and the head of Carlyle Korea, expressed enthusiasm about the partnership with Yum Brands. Kim said that Carlyle is eager to work with KFC Korea’s management team to grow the iconic brand in South Korea.

    Kim spoke highly of KFC Korea, stating that the brand’s strong heritage and market position make it ripe for expansion. He also mentioned the growing demand for quick-service dining among Korean consumers, which KFC Korea could effectively cater to.

    Carlyle’s current holdings include A Twosome Place, a dessert cafe chain boasting over 1700 stores in South Korea, as well as KFC in Japan.

    An Exciting Milestone

    Tony Shin, CEO of KFC Korea, also voiced his excitement about the partnership with Carlyle. He highlighted Carlyle’s extensive experience in the quick-service restaurant and F&B sectors, expressing optimism that the partnership will drive continued growth and innovation.

    Questions & Answers

    Who has acquired KFC Korea?
    The Carlyle Group, a US-based private equity firm, has acquired KFC Korea.

    What is the Carlyle Group’s plan for KFC Korea?
    The Carlyle Group plans to expand the restaurant chain’s existing 200-store portfolio in South Korea.

    Who previously owned the stake in KFC Korea that The Carlyle Group purchased?
    The stake was purchased from Orchestra Private Equity.

  • KFC Loyalty Program Captivates China: 590 Million Members and Counting

    KFC Loyalty Program Captivates China: 590 Million Members and Counting

    Yum China, the parent company of KFC in China, reported a significant expansion in its digital loyalty programs which now boast over 590 million members, accounting for over 40% of the country’s population.

    Growth in Loyalty Programs

    According to Yum China’s 2025 earnings report, unique membership in loyalty programs across KFC and Pizza Hut experienced a growth of 13% from the previous year. The report also revealed that 55% of the company’s sales were made through these programs.

    David Slavick, the founder of Ascendant Loyalty Marketing, a US-based consulting firm, referred to the achievement as “the largest loyalty program in the world”.

    Yum China’s Rapid Expansion

    Yum China Holdings, an offshoot of Yum Brands based in Shanghai, owns and franchises more than 18,000 stores across the country. This includes approximately 13,000 KFC locations, which the company claims is the largest restaurant chain in the country.

    The company has pursued a strategy of quick expansion in a market where consumers utilize digital payment apps more extensively than in other consumer markets such as the United States, a trend which has sped up in recent times.

    Impact on Yum China’s Business

    On Wednesday, Yum China’s CEO, Joey Wat, informed investors that the KFC loyalty program was “really helping our long-term and short-term business”. He attributed this to the growth in the popularity of the KPRO brand, a healthier and more upscale version of KFC, which was launched in 2017. Wat revealed that 80 to 90% of KPRO’s sales come from KFC loyalty members.

    Wat also mentioned that the company’s new AI ordering assistant for KFC app users, which was rolled out across the country in January, has been used by two million members so far, mainly by diners ordering breakfast and coffee.

    Increasing Trend of Digital Ordering

    Industry experts indicate that consumers in China use digital ordering apps more frequently than their counterparts in the United States. The market for loyalty programs in China was worth nearly $20 billion in 2025 and is projected to reach almost $33 billion by 2029.

    Yum China reported that 265 million users are active, meaning they have used the program in the past year. The company’s brand-specific loyalty apps, similar to the ones in the US, allow users to order meals and deliveries digitally, and also offer discounts and personalized recommendations. Unlike most restaurant brands in the US, Yum China’s KFC app also has paid and invitation-only tiers in its membership program that provide free deliveries and prioritization in delivery queues.

    Questions & Answers

    What is the scale of Yum China’s digital loyalty programs?
    Yum China’s digital loyalty programs have over 590 million members, which represents over 40% of the population of China.

    How much of Yum China’s sales are made through their loyalty programs?
    According to the company’s report, 55% of their sales are made through their digital loyalty programs.

    What is special about Yum China’s KFC app?
    Unlike most US restaurant brands, Yum China’s KFC app has paid and invitation-only tiers in its membership program. These tiers provide benefits such as free deliveries and prioritization in delivery queues.

  • Yum China’s Bold Leap: 30,000 Stores by 2030 and Why the Best is Yet to Come

    Yum China’s Bold Leap: 30,000 Stores by 2030 and Why the Best is Yet to Come

    Yum China, operating KFC and Pizza Hut in China, is strategically planning to double its store count within the next six years. This ambitious plan is built on the company’s consistent growth record and the vast untapped potential of the Chinese consumer market.

    Aggressive Expansion Goals

    Yum China has put forth a bold vision to reach 20,000 stores by next year and more than 30,000 by 2030, a significant increase from its current count of over 12,600. The company’s plan is driven by an understanding of the vast potential that exists within the Chinese consumer market, the largest of its kind in terms of purchasing power. Despite 38 years of operation, Yum China currently serves only about a third of the Chinese population, according to CEO Joey Wat. Their midterm goal is to serve half of the population by 2028.

    The next phase of the company’s growth will be fueled by its expansion into lower-tier cities. These regions are experiencing swift income growth, but the availability of branded food service options remains limited. Wat expressed confidence in the company’s potential to capture a larger share of the market in these cities, backed by their innovative store model, high-quality products, and value for money.

    Broadening KFC and Pizza Hut’s Reach

    Plans are underway to increase KFC’s footprint in lower-tier cities from the current 2,500 to approximately 4,500 by 2030. Similarly, Pizza Hut sees opportunity in over 3,500 cities where it has yet to enter.

    In order to penetrate these markets, Yum China has reimagined its store formats. For instance, KFC’s “small town model,” which requires an investment of RMB 500,000 – 700,000, has already been introduced in 400 cities. Pizza Hut’s Wow stores have also demonstrated promising results with payback periods of just two to three years.

    New Concepts and Resurgence

    In addition to expanding its primary brands, Yum China is also betting on new concepts like KCoffee and KPRO. KCoffee, a coffee chain embedded within KFC locations, already operates over 1,800 stores and is projected to exceed 5,000 by 2029. KPRO, a light-meal concept that emphasizes energy bowls and healthier choices, has gained popularity in Tier 1 markets where consumers are seeking lighter options.

    Pizza Hut’s resurgence in the Chinese market is another notable accomplishment for the company. After years of strategic repositioning, Pizza Hut has reported consistent growth, expanding its reach to previously untapped cities and attracting new customer groups.

    Digital Advancements and Supply Chain Strength

    A key strength of Yum China is its advanced infrastructure, including a supply chain that can serve 5,000 cities. The company is also utilizing cutting-edge technology such as generative and agentic AI applications to enhance its operations and customer service.

    Future Projections

    By 2030, Yum China is aiming to have more than 30,000 stores, with expectations of an operating profit margin of at least 11.5% and more than $1 billion in annual capital returns starting in 2027. The company’s leadership remains confident in their ability to meet these ambitious targets and sees promising signs of improving consumer sentiment.

    Questions & Answers

    What is Yum China’s expansion plan?
    Yum China aims to reach 20,000 stores by next year and more than 30,000 by 2030.

    What strategies will Yum China employ to achieve these goals?
    The company plans to tap into the untapped potential of lower-tier cities, redesign store formats for quicker and affordable entry into new markets, and leverage advanced technology to enhance operations and customer service.

    What new concepts is Yum China introducing?
    Yum China is introducing KCoffee, a coffee chain embedded within KFC locations, and KPRO, a light-meal concept focused on healthier choices.

  • KFC’s Zinger Banh Mi Sparks Debate: Innovative Fusion or Vietnamese Cuisine Faux Pas?

    KFC’s Zinger Banh Mi Sparks Debate: Innovative Fusion or Vietnamese Cuisine Faux Pas?

    KFC Australia has stirred up a buzz in the culinary world with its unique food fusion, the Zinger Banh Mi. This novel dish marries KFC’s crispy chicken fillet with a classic Vietnamese sandwich, introducing a fresh and somewhat unconventional dining experience.

    A Taste of Innovation

    On November 4, KFC Australia rolled out the Zinger Banh Mi across the country, following a successful trial run in Newcastle. This limited-edition dish comprises coleslaw, chili, coriander, mayonnaise, KFC Supercharger sauce, and a Zinger chicken fillet, all nestled within a traditional Banh Mi roll.

    Sally Spriggs, KFC’s group marketing director, expressed her excitement about the new offering. She said, “At KFC, we love putting our own spin on modern foods, and the Zinger Banh Mi is our take on a dearly-loved classic. It’s an exquisite blend of spice, freshness, and texture, a truly tantalising combination that heralds flavor innovation while offering our fans a fresh way to savour our renowned Zinger.”

    Melding Flavours and Cultures

    Food enthusiasts have shown considerable interest in this unique concoction. Georgia Mahood hailed it as the “ultimate flavor fusion”, characterising it as a marriage of KFC’s signature spice with the light and refreshing flavours typical of a Banh Mi. The traditional Vietnamese sandwich usually comprises a crusty baguette filled with ingredients like pate, grilled chicken, beef, pickles, and herbs.

    However, not all reactions to the Zinger Banh Mi have been entirely positive. Some critics, particularly those familiar with traditional Banh Mi, have expressed scepticism. One reviewer noted, “The banh mi from KFC was tasty, but it didn’t really taste like a banh mi. It’s missing the absolutely vital ingredients that define a banh mi!”

    The Zinger Banh Mi is available at select KFC restaurants, priced from AUD9.95 (US$6.50). However, this offering is only available until December 1.

    A Global Taste Journey

    The Zinger Banh Mi is part of KFC’s strategy to expand its menu with international-inspired offerings. This initiative features a series of limited-edition releases that tap into global food trends. Other offerings include the Sweet Tokyo Feast, which boasts crispy fried chicken coated in a sweet teriyaki-style glaze and sprinkled with sesame seeds. Earlier, the fast-food chain launched a kebab range that combined its iconic Original Recipe and Zinger chicken with flavourful salads and sauces.

    Questions & Answers

    What is the Zinger Banh Mi?
    The Zinger Banh Mi is a fusion of KFC’s crispy chicken fillet and a traditional Vietnamese sandwich. It features coleslaw, chili, coriander, mayonnaise, KFC Supercharger sauce, and a Zinger chicken fillet, served on a Banh Mi roll.

    Where can the Zinger Banh Mi be purchased, and for how long?
    The Zinger Banh Mi is available at selected KFC restaurants until December 1. The price starts at AUD9.95 (US$6.50).

    What other international-inspired offerings has KFC introduced?
    KFC has launched a series of limited-edition menu items inspired by international cuisine. These include the Sweet Tokyo Feast, featuring teriyaki-style glazed chicken, and a range of kebabs combining its Original Recipe and Zinger chicken with salads and sauces.

  • KFC Unveils Butterbear Merchandise: New Trend Sweeps Fast-food Giant In Singapore

    KFC Unveils Butterbear Merchandise: New Trend Sweeps Fast-food Giant In Singapore

    Step aside, Labubu. A new captivating character is capturing our affections, and it doesn’t hail from Pop Mart. The Butterbear, a charming mascot from Thai bakery Butterbear, is quickly gaining fame. So, it was only a matter of time before brands jumped on the trend with an appealing collaboration. Leading the way in Singapore is the fast-food giant, KFC, which recently unveiled a delightful range of collectible Butterbear merchandise that fans will surely find irresistible.

    The Butterbear Boom

    This comes in the wake of the successful Mofusand launch for the Chinese New Year 2025. The launch included items like soft toy keychains, stickers, and red packets decorated with cats.

    KFC Meets Butterbear

    In keeping with the current rage for blind boxes, the KFC x Butterbear collection intriguingly includes surprise keychains. Collectors can seek out four different designs from October 15 to November 25, 2025, while stocks last. Each design draws inspiration from a different beloved item on the KFC menu: the egg tart, the Zinger, the drumstick, and the chicken bucket.

    To secure one of these keychains for $12.95, customers need to purchase either the Thai-Thai Saucy Chicken Box ($13.95) or the Thai-Thai Saucy Bites Box ($11.95). These are new limited-edition offerings that are part of the collaboration. The Thai-Thai Saucy Chicken Box offers a spicy, tangy, Thai-inspired version of KFC’s hot and crispy chicken, while the Thai-Thai Saucy Bites Box features boneless chicken pieces doused in the same distinctive sauce.

    Additionally, the menu features Thai fritters with condensed milk ($4.40 for four pieces), which can be thought of as the Thai twist on you tiao.

    A Rewarding Experience

    Early birds will be rewarded for their punctuality with Butterbear stickers. To claim these, they simply need to purchase two breakfast Twister buddy meals for $12. This offer is valid for both dine-in and takeaway orders. But fear not, night owls; those who prefer to order their Thai-Thai Saucy Chicken or Bites Box via KFC delivery can also snag a pair of red KFC Butterbear long socks for $5.95. If they choose to order via Grab, they can get a green version of the socks instead.

    Butterbear Plush Crossbody Bag

    One of the collection’s highlights is undoubtedly the KFC Butterbear plush crossbody bag. This accessory allows you to carry your essentials and your buttery buddy wherever you go. The bag, like the blind boxes, is purchasable with any order of the Thai-Thai Saucy Chicken or Bites Box. But act fast, as only 3,000 are available across selected KFC outlets in Singapore.

    These outlets include: Plaza Singapura, West Mall, Bedok Town Square, Causeway Point, HarbourFront Centre, Nex, Jurong Point, Lot One, Compass One, Northpoint City, Toa Payoh, Tampines Mall, Star Vista, Novena Square, and Admiralty Place.

    Questions & Answers

    What are some of the items included in the KFC x Butterbear collection?
    The KFC x Butterbear collection includes surprise keychains, Butterbear stickers, red and green KFC Butterbear long socks, and a KFC Butterbear plush crossbody bag.

    How can one acquire items from the KFC x Butterbear collection?
    The items can be obtained by purchasing certain meals from KFC, such as the Thai-Thai Saucy Chicken Box or the Thai-Thai Saucy Bites Box. Some items are offered as rewards for purchasing specific meals or placing orders through certain platforms.

    Where can the KFC x Butterbear collection be found?
    The collection is available at 15 selected KFC outlets across Singapore, including Plaza Singapura, West Mall, Bedok Town Square, and Causeway Point, among others.

  • Yum China Unveils ‘Fried Chicken Brothers’: A New Twist On Fast-food With Chinese And Korean Flavors

    Yum China Unveils ‘Fried Chicken Brothers’: A New Twist On Fast-food With Chinese And Korean Flavors

    Yum China, KFC’s operator in the country, has discreetly introduced a fresh pilot concept by the name of Fried Chicken Brothers, further diversifying its localized sub-brands.

    The pilot currently runs two compact stores in Shanghai, each approximately 20sqm in size, with a particular focus on takeaway and delivery services.

    The innovative brand presents two unique culinary adventures. One specializes in Chinese-style fried chicken, while the other embraces the distinct flavors of Korean-style fried chicken.

    The Chinese menu features dishes inspired by regional flavors, such as chicken spiced with Litsea cubeba, crispy chicken skin paired with chili, and chicken racks with a unique taste of Yanbian barbecue kimchi. The Korean-style shop, on the other hand, emphasizes boneless fried chicken, served with an array of bold sauces including creamy cheese, amber sweet and spicy, and honey mustard sauces.

    Based on user reviews, the average spending per person is estimated around 30 RMB (approximately US$4.12), positioning Fried Chicken Brothers as a cost-effective and flavor-rich alternative in the fast-food fried chicken market.

    This new addition expands Yum China’s increasing portfolio of KFC sub-brands in the country, which further includes KCoffee and Kpro. This move aligns with the company’s broader strategy of diversifying its offerings to cater to younger consumers and adapt to the ever-changing local tastes.

    Questions & Answers

    What is Yum China’s new pilot concept?
    Yum China has introduced a new pilot concept called Fried Chicken Brothers, which offers Chinese and Korean-style fried chicken.

    What does the Fried Chicken Brothers menu offer?
    The menu offers two distinct culinary experiences. The Chinese-style menu features dishes like Litsea cubeba-spiced chicken and Yanbian barbecue kimchi-flavoured chicken racks. The Korean-style menu focuses on boneless fried chicken with a variety of sauces.

    What is the positioning of Fried Chicken Brothers in the market?
    As per user reviews, the average spending per person is around 30 RMB (US$4.12), thus positioning Fried Chicken Brothers as an affordable and flavor-rich alternative in the fast-food fried chicken market.

  • KFC Indonesia shutters 47 outlets, lays off thousands of employees

    KFC Indonesia shutters 47 outlets, lays off thousands of employees

    KFC Indonesia reported a net loss of IDR557.08 billion (over US$36 million) as of the third quarter of this year, resulting in the company’s closure of 47 outlets and sack of 2,274 employees.

    In its financial report, KFC Indonesia’s owner, Gelael and Salim Group under PT Fast Food Indonesia Tbk (FAST), disclosed that in the first nine months of this year, the company reduced its operational store count to 715 from the 2023 figure of 762. Its workforce has also significantly decreased, now standing at over 13,700 employees compared to nearly 16,000 previously.

    The most substantial factor in FAST’s revenue decline was a sharp drop in food and beverage sales, totaling 3.57 trillion IDR as of the third quarter, an annual decrease of 22.4%.

    FAST’s leaders attributed these downturns to the prolonged negative impacts of the COVID-19 pandemic. Recovery has yet to help the company reach its expected sale targets, while market conditions have further deteriorated.

    Lees ook:

  • Yum Restaurants India to sell stake in local Yum Brands franchisee

    Yum Restaurants India to sell stake in local Yum Brands franchisee

    Yum Restaurants India is reported to have sold its 4.4 per cent share in Devyani International for US$105 million.

    Devyani International, from which Yum Restaurant acquired the stake in 2021, is the main franchisee of Yum Brands in China, operating KFC, Pizza Hut and Taco Bell.

    SBI Mutual Fund (MF), Axis MF, Franklin Templeton MF, Nippon India MF, and Goldman Sachs are among the investors in Devyani International’s stock.

    Devyani is planning to push the expansion of these brands, strengthening its growth strategy in FY24 by purchasing 274 KFC restaurants in Thailand, marking its first foray into Thailand’s quick-service and limited-service restaurant markets.

    The business also plans 2000 stores across the globe by the end of this year, ahead of the previous target date of 2026.

    Lees ook:

    Lees ook:

  • KFC operator Collins Foods breaks $1 billion sales threshold

    KFC operator Collins Foods breaks $1 billion sales threshold

    The boss of major KFC franchisor in Australia, Collins Foods, still believes that the company’s quick-service Mexican food business Taco Bell can succeed in the Australian market despite the brand’s results hitting the group’s full-year profits.

    Revenue at Collins Foods was up 14.2 percent to $1.3 billion in the 12 months to April 30. KFC stores hit $1 billion in revenue for the first time, but the company’s net profit declined by 76.7 per cent to $12.7 million.

    A $36.7 million impairment against the Taco Bell business impacted the results, with Taco Bell stores posting a same-store sales decline of 4.8 percent for the year.

    Collins Foods’ shares surged 16.7 percent to $9.17 in late afternoon trade on Tuesday despite the drop in net profit for the year, with analysts saying the strength of KFC sales was impressive and the outlook for the group’s brands was positive.

    UBS analysts said the numbers were stronger than expected, with a key surprise being the strength of the company’s growth and earnings margins in Europe.

    Australia’s quick-service Mexican food market has become increasingly crowded over the past few years, with brands like Guzman y Gomez growing strongly, but Collins Foods chief executive Drew O’Malley said there was still a place for Taco Bell in the Australian market.

    “New brands can take time to gain traction. We have seen similar trends in other markets in the early years, where the brand [Taco Bell] is now thriving today,” he said.

    But the company acknowledges that it has had to invest in “enhancements to product quality” to bring more Australian consumers into Taco Bell stores.

    O’Malley said one key area of recent investment been in the quality of the brand’s chips.

    “One of my favorite examples is on French fries – we had gotten a number of complaints from our customers around chips being soggy. We have very recently launched an ultra-premium, sure-crisp French fry with McCain,” he said.

    “We have seen an immediate change in customer perception … Especially since we do so much customer delivery, we think that’s really important for the brand.”

    Collins Foods pointed to sustained inflationary pressures when releasing its full-year numbers on Tuesday, and O’Malley said the impacts of rising input costs is expected to be felt into next year.

    But he was upbeat about the value position of KFC in the current economic environment, saying customers view the fast food retailer as providing the best value in the market.

    “If you look at the consumer today, it’s like 12 straight rate increases, [which] has meant 12 straight letters from your bank saying your mortgage is going up. We are very sensitive to that, and we want to make sure our brands excel at a time like this,” he said.

    Lees ook:

    Lees ook:

  • Collins Foods expands its Dutch KFC network

    Collins Foods expands its Dutch KFC network

    Collins Food’s wholly-owned Dutch subsidiary (Collins Foods Netherlands Operations) has entered into a share purchase agreement to acquire eight KFC restaurants in the Netherlands from R. Sambo Holding.

    The purchase price, which will be funded from Collins Foods’ existing debt facilities, is structured with an initial payment of €8 million (A$12.33 million) and an additional €4.6 million (A$7.1 million) tied to the restaurants’ EBITDA during the next two years.

    Collins Foods MD & CEO Drew O’Malley said the acquisition is another “step forward” for the business’ European growth strategy.

    “The eight restaurants we are acquiring in the Netherlands add another quality network of restaurants to our portfolio, as well as enhance our people capability as we continue to grow and increase our operational scale in the Netherlands,” he said.

    The deal is subject to the satisfaction of various conditions, including obtaining all relevant government permits and the franchisor’s consent to the purchase. If prerequisites are fulfilled, the business will be fully acquired by May.

    Once completed, Collins Foods’ KFC Netherlands store count will reach 56 restaurants, accounting for 64 percent of the brand’s network there.

    Lees ook:

  • Orchestra Private Equity to acquire KFC Korea for 60 billion won

    Orchestra Private Equity to acquire KFC Korea for 60 billion won

    Orchestra Private Equity, a private equity firm based in Singapore, has signed a stock purchase agreement to acquire chicken franchise KFC Korea, according to industry sources on Friday.

    Under the deal signed on Thursday, Orchestra PE will purchase a 100 percent stake in KFC Korea from KG Group, a chemical-to-steel company based in Seoul.

    The transaction has an estimated worth of 60 billion won ($48.3 million) to 70 billion won.

    KFC Korea has been on sale for a year by KG Group which took over the fast food chain in 2017 from another private equity firm CVC Capital Partners.

    To get better control over the fried chicken chain after the acquisition, Orchestra PE signed a separate contract with Yum! Brands, the American operator of KFC to alter its operating system from direct management to a franchise system.

    According to market observers, KFC has struggled to expand its presence in the country due to failure in localization as all decisions had to be made only after consulting with the American headquarters.

    Lees ook:

  • Jollibee Foods struggles to make profits in Vietnam with 4 brands

    Jollibee Foods struggles to make profits in Vietnam with 4 brands

    All four brands that Jollibee Foods Corp of the Philippines operates in Vietnam, including coffee chain Highlands Coffee, posted losses last year.

    The corporation, founded by Filipino billionaire Tony Tan Caktiong, established its first company in the country, Jollibee Vietnam, in 2005, as a fast food operator.

    Since then it has branched into other food and beverage brands: Pho 24, Highlands Coffee and Coffee Bean & Tea Leaf Vietnam. But Highlands Coffee is its only profitable brand (except for last year), while all three other chains have been making losses for years

    Jolibee Vietnam planned to have 300 outlets in the country by 2020, but it only has 150 as of now, lower than its competitors KFC and Lotteria.

    It posted a loss of VND43.9 billion (1.83 million) last year.

    Pho 24, which sells the traditional Vietnamese rice noodles soup, is also struggling to make profits nearly 20 years after it was established.

    At one point, it had targeted 1,000 outlets, but only has 22 now, mostly in Ho Chi Minh City. It also has outlets in South Korea, Indonesia and the Philippines.

    It posted a loss of VND89.4 billion last year.

    The Coffee Bean & Tea Leaf is in an even worse situation with just six outlets in HCMC after 14 years in Vietnam. Its prices are 1.5-2 times higher than that of Highlands Coffee and its outlets are mostly located in large malls.

    It has been reporting an annual loss of VND26-29 billion in the last four years.

    Highlands Coffee, meanwhile, has reported profits for seven of the last eight years.

    The chain topped the VND1 trillion revenue mark in 2017 and doubled it in two years to cross VND2 trillion.

    Except for last year when it posted a VND19 billion loss due to Covid-19, Highlands Coffee had posted annual profits of VND55-100 billion in the previous four years.

    The chain now has 525 outlets in Vietnam and the Philippines.

    Lees ook:

  • KFC and Hype team up in branded fashion drop

    KFC and Hype team up in branded fashion drop

    KFC may be known for its fried chicken, but it’s about to make a move into the fashion world, teaming up with HYPE to launch a 47-piece clothing line.

    The fast food chain has collaborated with lifestyle brand HYPE to create a collection of clothes and accessories including hoodies, puffer jackets and bucket (no pun intended) hats.

    The line-up of co-branded clothing and accessories features designs inspired by both brands, mixing KFC’s tongue-in-cheek interactive messaging with HYPE bold heritage statements.

    The exclusive range has your everyday staples covered and features bralettes, joggers, tees, caps and backpacks, which the brands claim will ensure you look “festival-ready and feeling finger lickin’ good”.

    Inspired by KFC’s history, including its menus and slogans, the collection includes HYPE’s original dad cap shape with ‘Bargain Bucket’ emblazoned across the front.

    Lees ook:

    Lees ook:

  • KFC operator in Thailand explores sale of business

    KFC operator in Thailand explores sale of business

    Restaurants Development Company is exploring the sale of its KFC franchise business in Thailand, valued at roughly $300 million, as revenue rebounds with a recovery in Southeast Asia’s second-largest economy, three sources aware of the matter said.

    The Bangkok-based firm, backed by a consortium led by Southeast Asian focused private equity firm AIGF Advisors Pte Ltd, is in talks with at least one advisor on the potential sale, said the sources, who asked not to be named as they were not authorised to speak to the media.

    Restaurants Development was considering the sale of its KFC business in 2020 but the process was shelved due to the impact of the coronavirus pandemic, two of the sources said.

    Restaurants Development and AIGF did not respond to a request for comment.

    The revival of the sale comes with a pick up in Thai consumer confidence in June, for the first time in six months, boosted by improved economic activity following an easing of COVID-19 curbs.

    Restaurants Development recorded its highest ever quarterly sales in the first three months of 2022, it said on its website, and also the highest annual same-store sales growth rate.

    Its KFC business is expected to grow further over the next few quarters on the back of the economic recovery and easing of travel restrictions, one of the sources said.

    Two sources said potential suitors could include Central Restaurants Group and The QSR of Asia Co Ltd, a unit of Thai Beverage, which run the other KFC franchises in Thailand.

    Thai Beverage declined to comment and there was no response from Central Group to a request for comment.

    Founded in 2016, Restaurants Development employs more than 5,000 people and operates more than 240 restaurants across Thailand. This compared with the 4,000 people and 200 restaurants it employed and managed two years ago.

    It currently owns 236 KFC stores, according to its website.

    As in other markets, Southeast Asian mergers and acquisitions activity is going through a soft patch, hit by high inflation, rising interest rates and weak equity markets.

    Last week, Thailand’s central bank chief said the central bank will ensure the recovery is not interrupted by efforts to tackle higher inflation, amid expectations of an increase in interest rates.