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Tag: KFC

  • KFC Japan celebrates 50th anniversary

    KFC Japan celebrates 50th anniversary

    KFC Japan will celebrate its 50 anniversary this year.

    After its successful trial at the Osaka Expo in March 1970, KFC Japan was founded on July 4 in honor of Independence Day in the fast-food chain’s home country, the US.

    The first KFC Japan store was opened in the suburban location of Nagoya in November that year.

    Back then, the term “fried chicken” wasn’t widely used in Japan. However, KFC is now one of the country’s most popular fast-food chains, and has even become a tradition at Christmas.

    To celebrate the 50th anniversary, KFC Japan has designed a logo for the event and plans to roll out TV commercials and special menu items later in the year.

    “In the changing world, KFC Japan will continue to express appreciation by providing delicious taste through food,” the company said in a statement.

    “We will express our sincere thanks through our products, campaigns and activities during our 50th anniversary year and promise to continue to protect the ‘deliciousness that no one can imitate’.”

    Japan is the third-largest market for KFC after China and the US, with 306 outlets directly operated by the company in Greater Tokyo and 826 restaurants run by franchisees in regional areas.

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  • Yum China reopens most stores, reports recovering footfall

    Yum China reopens most stores, reports recovering footfall

    Yum China says it is witnessing “early signs of recovery” in Mainland China as business gradually resumes and people return to work.

    However, the company, which operates KFC, Pizza Hut and Little Sheep chains, said in an update to shareholders that restaurant traffic remains “heavily impacted” as people continue to implement social-distancing measures.

    Store closures peaked in mid-February when about 35 percent of the company’s network was closed, the remainder offering only delivery and takeaway services. However, trade for those still trading significantly declined. Same-store sales for Yum China were down by between 40 percent and 50 percent year on year during the Chinese New Year holiday period.

    This week, about 95 percent of Yum China’s stores had reopened either fully or partially and about 15 percent of those continued to offer only takeaway or delivery services.

    In its update, Yum China said that while customer volumes were slowly building, they remained well down on pre-outbreak levels.

    “The pace of recovery varies by region and is slower during weekends as people avoid going out. In recent days, same-store sales were down approximately 20 percent. Sales performance fluctuates as the recovery is uneven, and the situation continues to evolve,” the company said.

    Yum China launched contactless delivery in late January, which proved popular and supported the delivery business during a period of lower dine-in traffic. “Delivery sales grew year over year, and its mix as a percentage of company sales approximately doubled.”

    Yum China also launched contactless pick-up and corporate catering services as highly sanitary options for consumers and corporate customers.

    Now that the coronavirus crisis appears to have passed its peak in Mainland China, the company is considering resuming its network expansion program. Currently paused – largely due to a shortage of construction workers and traffic restrictions – the company says it will “continue to monitor the situation and work with local authorities, resuming new store openings when conditions allow”.

    “Despite a challenging start to the year, Yum China is here for the long run, and will ensure that it remains well-positioned for the long-term growth opportunities in China.”

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  • Yum China launches contactless delivery services

    Yum China launches contactless delivery services

    Yum China, which operates Chinese KFC and Pizza Hut networks, has launched a contactless food-delivery service.

    The move is a response to concerns about transmission of coronavirus between customers and delivery staff – but will also give confidence to consumers who are increasingly buying from food-delivery services to avoid public contact in supermarkets, shopping centers, and restaurants.

    “The health and wellbeing of our employees and customers is our top priority,” said the firm in a written statement to Business Insider, “and the innovative new services will help reduce the risk of person-to-person transmission of the coronavirus and protect our employees and customers”.

    Customers who elect for the contactless service will be instructed to remain at least 10 feet from the masked delivery personnel, who will remove the boxed food from its thermal pouch and place it on an agreed pick-up surface only after visually confirming the receiving party.

    Delivery staff is expected to disinfect their hands before and after every transaction.

    Food may also be picked up in-store in hygienically sealed packages.

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  • First franchised KFCs open in Chinese gas stations

    First franchised KFCs open in Chinese gas stations

    Yum has announced the opening of its first franchised restaurants in Chinese gas stations, in collaboration with China Petrochemical Corporation (Sinopec) and China National Petroleum Corporation (CNPC).

    The first franchised KFC restaurant has been launched in a CNPC gas station in Yunnan Province while the first one in a Sinopec gas station is set to open its doors, Liaoning Province, next week.

    “The first franchised gas station restaurants represent an important milestone in our long-term strategic partnership with both companies,” said Joey Wat, CEO of Yum China. “Together with Sinopec and CNPC, we are committed to building a successful business model and creating innovation-driven growth together.”

    The partnership with Sinopec and CNPC will enable Yum China to expand its retail network into a previously underserved segment of the market as both companies collectively operate more than 50,000 Chinese gas stations.

    With the partnership, Yum China aims to open more than 100 stores in the next three years and create more opportunities to collaborate in other fields.

  • First franchised KFCs open in Chinese gas stations

    First franchised KFCs open in Chinese gas stations

    Yum has announced the opening of its first franchised restaurants in Chinese gas stations, in collaboration with China Petrochemical Corporation (Sinopec) and China National Petroleum Corporation (CNPC).

    The first franchised KFC restaurant has been launched in a CNPC gas station in Yunnan Province while the first one in a Sinopec gas station is set to open its doors Liaoning Province next week.

    “The first franchised gas station restaurants represent an important milestone in our long-term strategic partnership with both companies,” said Joey Wat, CEO of Yum China. “Together with Sinopec and CNPC, we are committed to building a successful business model and creating innovation-driven growth together.”

    The partnership with Sinopec and CNPC will enable Yum China to expand its retail network into a previously underserved segment of the market as both companies collectively operate more than 50,000 Chinese gas stations.

    With the partnership, Yum China aims to open more than 100 stores in the next three years and create more opportunities to collaborate in other fields.

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  • KFC urban concept unveiled in The Bronx

    KFC urban concept unveiled in The Bronx

    KFC has unveiled its newest urban inline restaurant design in the Bronx, NYC. Influenced by Colonel Sanders-inspired hospitality and the hustle and bustle of the Bronx, KFC’s new concept design illustrates “the borough’s fast-paced, eclecticism”.

    Designed by FRCH Nelson, KFC in the Bronx features a brick wall with KFC’s signature red and white stripes and tagline “It’s finger-licking’ good”. Different pictures of Colonel Sanders hung on the other white focal wall.

    “The Bronx neighborhood has a rich history and has seen a great deal of urban renewal in recent years,” said Lauren Moorehead, associate design manager of KFC. “It is important for us to reach our customers where they are and through our work with FRCH Nelson we’ve been able to create our first urban inline design that makes our brand more accessible for residents of the Bronx community and nearby Fordham University.”

    The design features a modern style that “captures the Colonel’s vintage flavor while marking a stark departure from the chain’s early decor, modeled on Sanders’ first restaurant”.

    Design director at FRCH Nelson, Marty McCauley, said working with a brand historically known for its southern hospitality, the agency created a design that maintained the great experience, but also looked to fold in a distinctly edgier attitude to deliver on the feistiness of what guests see from KFC in commercials and on social media.”

    KFC operates more than 23,000 restaurants in 140 countries and regions around the world under fast-food operator Yum! Brands.

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  • Collins Foods HY profit rises 9 per cent to $24m

    Collins Foods HY profit rises 9 per cent to $24m

    Collins Foods’ underlying half-year profit has risen 9.1 percent to $23.9 million, boosted by a 4.9 percent rise in same-store sales at its KFC Australia franchises.

    The fast-food franchisor says statutory profit for the 24 weeks to October 13 was up 12.1 percent to $24.1 million, as its revenue rose 9.2 percent to $448.8 million in the six months to October 13.

    “Our KFC Australia network delivered enhanced same-store sales growth that, with new restaurant openings, drove strong growth in revenue,” chief executive Graham Maxwell said on Wednesday.

    “Combined with management’s focus on maintaining strong cost control, KFC Australia’s earnings margin grew over the past six months.”

    Collins lifted its interim dividend by half a cent to 9.5 cents and its shares were 4.2 percent higher at $10.13 by 1146 AEDT.

    The company said around 100 of its 233 Australian KFC franchises were now offering delivery through Deliveroo and Menulog, which was helping boost sales volumes.

    Speed of service was also 10 percent faster than the prior year at peak times, the company said.

    Collins Foods said it has opened six new KFC restaurants in Australia in the last seven and a half months and has started a multi-year rollout of digital menu boards from drive-thrus.

    The company opened three new Taco Bells in Queensland in the past three months, bringing its total number of seven across Australia, and plans to open two more in Victoria before the end of the year.

    It is targeted to open 20 new Taco Bells in the next calendar year.

    Revenues at its 40 restaurants in Germany and the Netherlands was up 11.8 percent to $63.7 million, with a national brand refresh helping sales in Germany.

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  • KFC expands delivery offer with Menulog

    KFC expands delivery offer with Menulog

    QSR chain KFC has extended its partnership with Menulog for three more years after seeing a strong response to its offer on the food delivery platform over the past 12 months.

    The agreement will see the chicken chain offering delivery in more suburban and regional areas as it brings more restaurants onto the platform. More than 360 KFC restaurants currently offer delivery through Menulog, and that figure is set to rise by almost 10 per cent by the end of this year. KFC also offers delivery through rival platform Deliveroo.

    Competition in Australia’s food delivery space is intense, and the key players – Menulog, Deliveroo and Uber Eats, the market leader – all see restaurant chains with national footprints and sizeable marketing budgets, such as KFC, McDonald’s and Hungry Jack’s, as an important path to expansion.

    Since US delivery giant DoorDash entered the local market in September, the race to strike deals with QSR brands has only heated up. DoorDash recently offered free Oporto burgers as part of a promotion to mark its launch into Sydney. And Menulog’s managing director Ben Carter said the platform will continue to take advantage of co-marketing opportunities with KFC.

    “Kentucky Fried Chicken is a favourite with our customers and so there is a very compelling co-marketing opportunity that we will continue to take advantage of over the next three years,” Carter said in a statement.

    “Customers can expect to see some very exciting, creative and truly integrated work that will add value and enjoyment to the KFC and Menulog delivery experience.”

    Menulog recently announced it had signed its 16,000th restaurant in Australia. The platform is owned by UK-based company Just Eat, which is in the middle of a merger with the Dutch Takeaway.com.

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  • Malaysian KFC, Pizza Hut operator QSR Brands revives IPO plan

    Malaysian KFC, Pizza Hut operator QSR Brands revives IPO plan

    Southeast Asian KFC and Pizza Hut operator QSR Brands is seeking to reboot its IPO in the fourth financial quarter this year.

    The firm was previously in talks to sell its Malaysia shares, but has since backtracked on the plan and returned to its initial IPO agenda, with its financial performance over the next two quarters crucial to the timing. The firm potentially stands to raise US$600 million in listing.

    QSR Brand’s MD Mohamed Azahari Kamil told Bloomberg the firm will make the necessary announcement at the appropriate time without further comment.

    The company has been assessing investor demand since March.

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  • KFC New Zealand drives Restaurant Brands’ sales

    KFC New Zealand drives Restaurant Brands’ sales

    Restaurant Brands total group sales grew 2.7 percent over during the first half of FY20, though net profit fell 2 per cent due to the adoption of a new leasing standard.

    Total group sales, which include KFC, Pizza Hut and Carl’s Jr. in New Zealand, as well as KFC operations in Australia, and Taco Bell and Pizza Hut in Hawaii, grew to $442.6 million – an increase of $11.6 million on the prior year.

    Net profit fell to $20 million, 2 percent lower than the $20.4 million seen during 1H19, due to the adoption of NZ IFRS 16, which knocked net profit down $2.9 million as a result of lease depreciation costs.

    The bulk of the sales improvement came from KFC’s New Zealand operations, which saw sales up 7.9 per cent to $193.5 million.

    Same-store sales grew 5.7 percent, while EBITDA totaled $41.8 million, driven by a further roll-out of the business’ delivery operations, as well as successful product promotions and the opening of three new stores.

    Pizza Hut saw a more difficult half, with total sales down 10.5 percent to $18.3 million despite the expansion of the chain’s store network. Same-store sales also fell 4.4 percent due to competitive pressure, the impact of launching new stores, as well as the appearance of new food delivery companies in the New Zealand market.

    Restaurant Brands also confirmed it would be opening its first New Zealand Taco Bell at LynnMall Shopping Centre in Auckland next month.

    “Initial planning and setup is well underway to bring this exciting new brand to the New Zealand market with the first new store in Auckland targeted to open in November,” the company said in a release.

    Restaurant Brands chief executive Russel Creedy said the group would launch up to 25 Taco Bells across New Zealand in the next five years.

    The group’s Australian results were adversely affected by a stronger New Zealand dollar, with KFC Australia seeing 4.2 percent total sales growth to $99.5 million. Restaurant Brands is also planning to open two Taco Bell stores in New South Wales, Australia in the calendar year.

    “The overall business continues to deliver solid results across all geographic markets and this strong performance is expected to continue in the second half of the year,” the group said.

    The directors believe that, not including further impact of NZ IFRS 16, Restaurant Brands will deliver an NPAT at least 10 per cent higher than FY19 – having previously stated they are expecting a net profit of $45 million for the FY20 period.

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  • Restaurant Brands posts lift in 2Q sales despite Starbucks exit

    Restaurant Brands posts lift in 2Q sales despite Starbucks exit

    Restaurant Brands posted a lift in quarterly sales largely due to the success of its 97 KFC stores in the country.

    The fast food retailer posted total sales of $259.7 million for the quarter to September 9, a 3.5 per cent increase from the previous corresponding period’s $8.8 million, despite its exit from Starbucks in October last year.

    Restaurant Brand’s New Zealand arm, which accounts for more than half of its revenue, posted a 1.5 per cent rise in operation sales to $134.8 million and a 5.4 per cent increase on a same store basis.

    Its operating divisions in Australia and Hawaii also showed strong same-store sales growth with sales increases of 5.8 per cent and 9.6 per cent respectively.

    Local KFC outlets posted an 8.8 per cent lift in sales to $113.5 million, more than making up for the group’s exit from Starbucks, which contributed $7.3 million.

    Australian KFC outlets produced sales of $62.0 million, up 5.8 per cent on both a total basis and a same store basis. Hawaiian operations sales were $62.9 million, up 6.4 per cent on a total basis and 9.6 per cent on a same store basis.

    There was 5.9 per cent decline in second quarter sales for Restaurant Brands-owned Pizza Hut stores to $10.6 million from the same period last year. Same store sales for the quarter decreased by 4.3 per cent.

    Total Carl’s Jr. sales for the second quarter were $10.7 million, an increase of 8.3 per cent on the equivalent period last year following the introduction of delivery via the UberEats platform. Same store sales for the quarter were up by 8.2 per cent.

    Total Taco Bell sales were up $38.1 million on the back of several successful promotions, an 11.1 per cent increase.

    Pizza Hut Hawaii sales were flat, $24.7 million, compared to the prior year.

    The retailer’s year to date sales rose 2.7 per cent to $442.6 million compared to the previous corresponding period.

    Company store numbers were down by 20 on the equivalent period last year to 285, primarily from the sale of the 22 Starbucks Coffee stores.

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  • Yum China buys Chinese retail chain Huang Ji Huang

    Yum China buys Chinese retail chain Huang Ji Huang

    Yum China Holdings has entered into a definitive agreement to acquire a controlling interest in Huang Ji Huang group, a leading Chinese-style casual-dining franchise business.

    Subject to the satisfaction of closing conditions and regulatory approvals, the transaction is expected to close early next year.

    Founded in 2004 and headquartered in Beijing, Huang Ji Huang has more than 640 restaurants in China and internationally. The group operates primarily under a franchise model and its brand portfolio consists of simmer pot brand “Huang Ji Huang” as well as “San Fen Bao”, a newly launched Chinese fast food concept.

    Yum China is the largest restaurant company in China, with more than 8700 restaurants as of June 30. With the addition of Huang Ji Huang, Yum China aims to gain a stronger foothold and enhanced knowhow in the Chinese dining space, which represents a significant share of the dining market in China.

  • Yum China speeding up expansion plans

    Yum China speeding up expansion plans

    Yum China plans to invest up to US$525 million opening between 800 and 850 new stores in the current financial year.

    Most of the new stores will be KFC outlets and of its new cafe chain Coffii & Joy.

    The protections were included in the company’s second-quarter results released overnight, which showed total system sales up 10 percent year on year to US$2.12 billion, with KFC leading the way at 12 percent. Sales at Pizza Hut rose by 4 percent.

    While sales were up, much of the growth was driven by network expansion. Same-store sales grew 4 percent, with a 5-per-cent increase at KFC and a 1-per-cent increase at Pizza Hut.

    Restaurant margin slipped from 15.1 percent to 14.7 percent, however, operating profit rose 6 percent from $193 million to $204 million.

    Net Income increased 24 percent from $143 million to $178 million, primarily due to the increased operating profit and a gain from the company’s equity investment in Meituan Dianping.

    During the quarter, Yum China opened 178 new restaurants taking its store count to 8751 across more than 1300 cities.

    “We continued to capitalise on market opportunities across China with aggressive, KFC-led store expansion,” said Yum China CFO Jacky Lo. “With a strong cash payback period for new KFC stores and many untapped opportunities, we intend to continue to rapidly expand our store footprint in the second half of the year.

    “Looking forward, we expect overall sales growth to moderate as KFC begins to lap several key sales drivers, including successful value campaigns that we initiated in the second half of last year. However, we remain confident that our strong foundation and commitment to innovation throughout our business will power continued growth for Yum China. We will continue to create new and exciting menu items, and leverage our leadership in digital, data and delivery to meet the evolving needs of our consumers.”

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  • KFC invests millions in drive-thru-only restaurants

    KFC invests millions in drive-thru-only restaurants

    Quick service restaurant KFC announced last week it is investing $1.5 million in a “completely new concept for the fast-food industry” – a first of its kind drive-thru-only restaurant.

    Located in Newcastle, NSW, the store will feature five lanes and will utilize new technology to improve efficiency and speed in order from the on-site kitchen.

    Customers will be able to order and pay via the KFC app or website before arriving at the restaurant, and they will receive a four digit code to enter on a touchscreen receiver when they pull up to concept store, which sends the order to be prepared.

    Construction started in late June, and the restaurant is set to open in early November. The company said it potentially will roll out more drive-thru-only locations across Australia.

    “Drive-Thru Only is the latest example of KFC’s commitment to innovation, and to giving Aussies the most delicious and fresh chicken possible,” KFC Australia’s chief marketing officer Kristi Woolrych said.

    “We’re dedicated to continually building on our customer offering, that we’re always providing delicious and fresh meals, in the most convenient way to meet their busy lifestyles.”

    The store was conceptualized after KFC saw its e-commerce offering surge in popularity, with online ordering growing 100 per cent year on year for the last five years straight.

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  • KFC Hong Kong tests new concept store format

    KFC Hong Kong tests new concept store format

    Fast-food chain KFC Hong Kong has opened a new concept store format in Causeway Bay.

    The new three-storey store, which seats 150, aims to enhance the traditional fast-food dining experience with a chic style. It features a street-level kiosk offering desserts and ice creams, while the first floor has self-ordering kiosks with modern bar stools.

    The second floor is a dining area where the walls are decorated with murals. Three-dimensional art installations have been installed at each stairway, allowing customers to take instagrammable photos.

    “KFC is evolving,” said KFC Hong Kong and Macau CEO Janet Yuen. “We uplift the traditional fast-food experience and maintain brand authenticity with a more relaxed and chic cafe style.

    “The concept store is to create a trendy socialising hub, enabling our customers to enjoy valuable moments with friends.”

    The outlet has also introduced freshly cooked-to-order food items as the restaurant chain aims to uplift its fast-food dining experience in a more comfortable, trendy setting.

    Local franchisee Jardine Restaurant Group operates more than 810 outlets for KFC owner Yum! Brands, with operations under Pizza Hut in Taiwan, Hong Kong, Macau, Vietnam and Myanmar together with KFC in Hong Kong, Macau, Taiwan and Vietnam.

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