Yum! Brands plans $10B investment in emerging markets

Oct. 22, 2013

Yum! Brands has announced the opening of its 40,000th restaurant, a flagship KFC store in Goa, India. The company expects to have $1 billion in system sales in India by 2015, and more than 1,000 KFC, Pizza Hut and Taco Bell outlets in more than 100 cities in that market.

David Novak, chairman and CEO, said in a news release that Yum! Brands plans to invest $10 billion and have more than 20,000 restaurants in emerging markets by 2020. The company is on pace to develop more than five new restaurants per day outside of the U.S., with 1,450 expected to open in emerging markets this year.

"With only two restaurants per million people in the top 10 emerging markets, versus 58 restaurants per million in the U.S., we are only on the ground floor of global growth. India is one of the biggest emerging market opportunities in the world and we are thrilled to celebrate our 40,000th restaurant here," Novak said.

India is expected to have the largest consuming class in the world by 2030, and the country's consuming class is predicted to double in the next five years. The eating-out market is estimated to be $94 billion and only 2 percent is organized with national and international food retail brands, according to the release.

"Our growth in the country can be attributed to a successful brand building strategy focused on providing exceptional customer service, deep penetration across Tier I and Tier II cities, localized menu offerings and a skilled yet diverse workforce. As we grow our business, we also invest in the local communities with an aim to make a positive impact in the lives of millions of people," said Niren Chaudhary, president, Yum! Restaurants India.

The company's India division was created in November 2011 to support the staggering growth in the region.

The new flagship KFC store is located in Goa, which is in India's western coastal region. The store is spread across 4,100 square feet and can serve more than 130 people. KFC is Yum!'s fastest growing brand in India, having tripled in the past five years to now include 296 restaurants.

Pizza Hut currently has 181 casual dining restaurants and 132 Home Delivery locations. Taco Bell entered India in 2010 in Bangalore and has four restaurants located in the city currently.

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Topics: Franchising & Growth , Operations Management , Pizza Hut

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