Yum! is Largest and Fastest Growing Restaurant Company in India and Building Taco Bell into Third Powerhouse Global Brand
Yum! Brands, Inc. (NYSE: YUM) announces the grand opening of the first Taco Bell in India by its international division, Yum! Restaurants International (YRI). Yum! is the leading restaurant company in India with its KFC and Pizza Hut brands. The introduction of the first Taco Bell in India reflects the Company's strategy of creating a third global brand.
"We're delighted to be offering Taco Bell to consumers in India, a key growth market in our global portfolio," said Graham Allan, president, Yum! Restaurants International. "Based on customer feedback so far, we expect it will become extremely popular, just as it is in the United States. The Mexican-style food is perfect for the Indian taste palate and we will be offering a variety of vegetarian meals as well so that everyone can enjoy it."
Yum!'s new Taco Bell international restaurant, located in Bangalore, India, is the country's first experience with the Mexican-inspired quick-service restaurant brand. Taco Bell's "Think Outside the Bun" positioning and brand essence is expected to resonate extremely well with India's young population. The new Taco Bell India menu features tacos, burritos, nachos, quesadillas and Crunchwraps, including spicier products tailored to the Indian market. The menu offers breakthrough value priced items starting at 35 cents. In addition, fifty percent of the menu features a vegetarian range of products specially created for Indian consumers including potato paneer burritos and crunchy potato tacos, among others.
"We are confident that Taco Bell will redefine the eating-out market in India with incredible taste catering to many consumer segments, day parts and occasions at an unmatched price," said Niren Chaudhary, managing director, Yum! Restaurants International India. "We are excited to be opening the first Taco Bell in India and we plan to expand it nationally as an incredibly vibrant and youthful brand."
Yum! Brands is focused on developing Taco Bell into its third global brand after KFC and Pizza Hut. Taco Bell is the second most profitable brand in the United States. Over the past few years, the Company has expanded Taco Bell beyond Canada and Puerto Rico to other markets including Guatemala, Costa Rica, Panama, Dominican Republic, Guam, Iceland, Philippines, Dubai, Spain and Cyprus. Yum! is optimistic about the long-term potential of growing Taco Bell internationally. As of year-end 2009, there are more than 250 Taco Bell restaurants outside of the United States.
India is a key growth market for Yum! Brands due to its extremely young and large population of 1.1 billion people, growing middle class and emerging economy. Over the past 12 years, Yum! has become the largest and fastest growing restaurant company in India by successfully developing a strong infrastructure, highly-skilled workforce focused on providing outstanding customer service and innovative, localized menus offering value options. By 2015, the Company expects to have at least 1,000 restaurants in India, up from 230 restaurants as of year-end 2009.
KFC is the fastest growing quick-service restaurant brand in India with 72 restaurants in 13 cities as of year-end 2009. Yum! opened 27 new KFC restaurants in India in 2009, which is among the highest number of store openings in the country's quick-service restaurant industry. KFC is a young, vibrant brand in India from its contemporary restaurant designs featuring bold colors, open seating areas for large groups and flat-panel televisions to innovative marketing programs to unique signature products, including vegetarian items. Last year, the Company opened its first KFC Krushers beverage bar and store design in India highlighting YRI's popular new line of yogurt and fruit smoothies, dairy-based and soda-based drinks and teas.
Pizza Hut has been named the "Most Trusted Food Service Brand" in India for the fifth year by The Economic Times (India), ahead of all other Indian and global brands, demonstrating its popularity in the country. As of year-end 2009, there are 158 Pizza Huts in 34 cities offering a range of localized products including masala pizza, chicken tikka appetizers and spicy Indian drinks.
YRI is the largest division of Yum! Brands with more than 13,000 restaurants outside the U.S. and China Division. One of Yum! Brands' four key business strategies is to drive aggressive international expansion and build strong brands everywhere. In 2009, operating profit for YRI was $491 million. The year 2009 also marked the tenth year that YRI has opened more than 700 new restaurants outside the U.S. and China.
Yum! Brands, Inc., based in Louisville, Ky., is the world's largest restaurant company in terms of system restaurants with more than 37,000 restaurants in more than 110 countries and territories. The company is ranked #239 on the Fortune 500 List, with revenues of nearly $11 billion in 2009. Four of the company's restaurant brands - KFC, Pizza Hut, Long John Silver's and Taco Bell - are the global leaders of the chicken, quick-service seafood, pizza and Mexican-style food categories. A&W Restaurants is the longest running quick-service franchise chain in America and amongst the most preferred fast food franchise globally. Outside the United States, Yum! Brands system opened more than four new restaurants each day of the year, making it a leader in international retail development.
LOUISVILLE, Ky.--(// BUSINESS WIRE //)--
Showing posts with label KFC. Show all posts
Showing posts with label KFC. Show all posts
Thursday, March 25, 2010
Monday, March 1, 2010
KFC Franchise Expanding In India
KUALA TERENGGANU, Feb 28 (Bernama) -- Fast food operator, KFC Holdings (Malaysia) Bhd, in a move to further spread its wings overseas, will establish 10 outlets in India this year.
Its Chairman Tan Sri Muhammad Ali Hashim said KFC, which operated 540 outlets in Malaysia, Singapore, Brunei and Cambodia, would spend RM1.2 million to set up each outlet.
The franchisee of the KFC chain of restaurants invests an average RM35 million, annually, in its operations and sales had always excessed RM1 billion.
"The venture into India is a long-term move and the outlets there will only serve halal food," he told reporters after opening the KFC Graduate Enterprenuership 2010 Programme here on Sunday.
Muhammad Ali said two outlets would open in Mumbai, with one outlet operating in Pune, where several universities were located.
He also said KFC had 25,000 employees manning its outlets in Malaysia, Singapore, Cambodia and Brunei and this figure was expected to spiral further as KFC opened more outlets.
KFC Holdings, which emerged as the most profitable among KFC operations in the region for two consecutive years, opened 44 outlets last year, with seven located in Cambodia.
On the graduate entreprenuership programme, Muhammad Ali said it had given birth to 63 women entreprenuers among single mothers and graduates.
KFC Holdings hopes to realise its target of helping 1,000 single mothers become entreprenuers, next year, under the programme.
Its Chairman Tan Sri Muhammad Ali Hashim said KFC, which operated 540 outlets in Malaysia, Singapore, Brunei and Cambodia, would spend RM1.2 million to set up each outlet.
The franchisee of the KFC chain of restaurants invests an average RM35 million, annually, in its operations and sales had always excessed RM1 billion.
"The venture into India is a long-term move and the outlets there will only serve halal food," he told reporters after opening the KFC Graduate Enterprenuership 2010 Programme here on Sunday.
Muhammad Ali said two outlets would open in Mumbai, with one outlet operating in Pune, where several universities were located.
He also said KFC had 25,000 employees manning its outlets in Malaysia, Singapore, Cambodia and Brunei and this figure was expected to spiral further as KFC opened more outlets.
KFC Holdings, which emerged as the most profitable among KFC operations in the region for two consecutive years, opened 44 outlets last year, with seven located in Cambodia.
On the graduate entreprenuership programme, Muhammad Ali said it had given birth to 63 women entreprenuers among single mothers and graduates.
KFC Holdings hopes to realise its target of helping 1,000 single mothers become entreprenuers, next year, under the programme.
Wednesday, February 3, 2010
Franchising World Over and Franchise In India
World Over, franchise contracts are typically governed by the laws of the land. In the United States, franchising falls under the jurisdiction of a number of state and federal laws. Franchisors are required by the Federal Trade Commission to provide a uniform Franchise Offering Circular (UFOC), to disclose essential information to potential franchisees about their purchase. States may require the UFOC to contain specific requirements but the requirements in the state disclosure documents must be in compliance with the federal rule that governs federal regulatory policy. There is no private right of action under the FTC Rule for Franchisor violation of the rule, but fifteen or more of the states have passed statutes that provide a private right of action to franchisees when fraud can be proved under these special statutes.
In the United Kingdom, on the other hand, there are no franchise specific laws, franchises are subject to the same laws that govern other businesses. Some self regulation exists through the British Franchise Association (BFA).
Over the last 15 years, franchising as a format of retail expansion, has gradually matured international franchising is also in an interesting phase in India as global organizations like Pizza Hut, Marks and Spencer, McDonald’s, Subway, HP, Holiday Inn, Medicine shoppe, Domino’s, Gold’s gym and Kentucky Fried Chicken have set up franchises in India.
Industry sources claim that, franchising in India has been clocking a 60 % year on year growth which is likely to accelerate to 100 per cent over the next five year period. In India three are close to over 40,000 franchisees with an annual turnover anywhere between Rs 8000-Rs 10,000 crores from franchising. It is estimated that the total investments made by franchisees is over Rs 5000 crores and over 300,000 people are directly employed by franchised businesses.
The Franchise showrooms of various readymade garment manufacturers like Arvind, Madura Garments,Levis, and others like Titan, Tanishq, Gitanjali perhaps the most visible successes of franchising in India. One of the pioneers in this field, in the area of beauty and personal care products has been Shahnaz Hussain. Today, the chain of Shahnaz Hussain parlors has more than 200 franchisers in India. As the economies evolves, retail as sector continues to grow, various new avenues in franchising are emerging on the Indian franchise scenario. Education is a key area in India, where there have been significant developments in franchising. The IT education sector is fairly substantial at 40%. Franchising in the IT enabled services sector stands at 14%. The portfolio in the education sector is diverse – from children education in computer basics to expertise in languages and competitive exams including foreign universities admission exams. In the education category, NIIT,Aptech,Euro Kids and ZILS are performing well. Instead of large pool of IT talent, NIIT is aiming to nurture rightly skilled manpower which is industry ready and high on the employability index.
Franchising is also gaining acceptance among online companies as a means to expand their network and other personalized services. Shaadi.com is one such dot.com which is considered a success in franchising in India, with 153 Shaadi.com centers across 87 Indian cities. Shaadi.com saw an opportunity to further its offerings through the franchise model, and hence, launched Shaadi Point which is an example of an online business doing very well in the brick and mortar space through franchising in India.
Franchising is useful as it is characterized by quick reach, but a franchiser network has to be managed, and a franchise needs to make money, so it does have its challenges like maintaining consistency of brand, brand equity and quality of service.
Many international retailers are also tapping the Indian market through franchising. Britain’s coffee chain Costa Coffee, is one such example, who is eyeing massive expansion across the country. The international chain, which entered India in September 2005 through a master franchise, has long term plans top open 300 outlets in the next three to four years. It would be looking at an investment of over Rs 150 crore. Besides opening new stores, the coffee chain is also introducing the concept of cart and kiosk in corporate offices. While the kiosk model is a full fledged structure that serves the entire menu of Costa F&B, the cart model is a smaller version, a hot counter that serves only coffee.
Franchising is growing world over and as the new developing economies are embracing quicker responsible growth they are looking at franchising as a suitable option for growth.We will see the next big franchise stories emerging from these developing markets.
In the United Kingdom, on the other hand, there are no franchise specific laws, franchises are subject to the same laws that govern other businesses. Some self regulation exists through the British Franchise Association (BFA).
Over the last 15 years, franchising as a format of retail expansion, has gradually matured international franchising is also in an interesting phase in India as global organizations like Pizza Hut, Marks and Spencer, McDonald’s, Subway, HP, Holiday Inn, Medicine shoppe, Domino’s, Gold’s gym and Kentucky Fried Chicken have set up franchises in India.
Industry sources claim that, franchising in India has been clocking a 60 % year on year growth which is likely to accelerate to 100 per cent over the next five year period. In India three are close to over 40,000 franchisees with an annual turnover anywhere between Rs 8000-Rs 10,000 crores from franchising. It is estimated that the total investments made by franchisees is over Rs 5000 crores and over 300,000 people are directly employed by franchised businesses.
The Franchise showrooms of various readymade garment manufacturers like Arvind, Madura Garments,Levis, and others like Titan, Tanishq, Gitanjali perhaps the most visible successes of franchising in India. One of the pioneers in this field, in the area of beauty and personal care products has been Shahnaz Hussain. Today, the chain of Shahnaz Hussain parlors has more than 200 franchisers in India. As the economies evolves, retail as sector continues to grow, various new avenues in franchising are emerging on the Indian franchise scenario. Education is a key area in India, where there have been significant developments in franchising. The IT education sector is fairly substantial at 40%. Franchising in the IT enabled services sector stands at 14%. The portfolio in the education sector is diverse – from children education in computer basics to expertise in languages and competitive exams including foreign universities admission exams. In the education category, NIIT,Aptech,Euro Kids and ZILS are performing well. Instead of large pool of IT talent, NIIT is aiming to nurture rightly skilled manpower which is industry ready and high on the employability index.
Franchising is also gaining acceptance among online companies as a means to expand their network and other personalized services. Shaadi.com is one such dot.com which is considered a success in franchising in India, with 153 Shaadi.com centers across 87 Indian cities. Shaadi.com saw an opportunity to further its offerings through the franchise model, and hence, launched Shaadi Point which is an example of an online business doing very well in the brick and mortar space through franchising in India.
Franchising is useful as it is characterized by quick reach, but a franchiser network has to be managed, and a franchise needs to make money, so it does have its challenges like maintaining consistency of brand, brand equity and quality of service.
Many international retailers are also tapping the Indian market through franchising. Britain’s coffee chain Costa Coffee, is one such example, who is eyeing massive expansion across the country. The international chain, which entered India in September 2005 through a master franchise, has long term plans top open 300 outlets in the next three to four years. It would be looking at an investment of over Rs 150 crore. Besides opening new stores, the coffee chain is also introducing the concept of cart and kiosk in corporate offices. While the kiosk model is a full fledged structure that serves the entire menu of Costa F&B, the cart model is a smaller version, a hot counter that serves only coffee.
Franchising is growing world over and as the new developing economies are embracing quicker responsible growth they are looking at franchising as a suitable option for growth.We will see the next big franchise stories emerging from these developing markets.
Tuesday, December 29, 2009
Worlds Finest Food Franchise Companies In India
BANGALORE: Amit Burman, vice-chairman of Dabur India, never thought that a casual stroll down one of south Delhi’s upcoming localities would
provide an idea for a unique business opportunity.
In 2006, the US-returned Burman and his friend Rohit Aggarwal were in Saket, standing outside one of the outlets of the international chain, Subway. The place was crowded, with people, especially in the 18-35 age group, buzzing in and out constantly. Burman and Aggarwal paused their conversation and wondered if there was a business opportunity here.
“Franchising Subway began as a hobby,” Burman says laughing. In the initial months, the team had to work on creating the sandwich category and tailoring it to local tastes. The classic cold-cut turkey and tuna subs had to share space with chicken tikka and chicken seekh kabab fare. “People were very doubtful about the venture and would ask if I planned to make sandwiches all my life,” jokes Burman.
He needn’t have worried. In three years, Burman’s Lite Bite Foods has become Subway’s largest franchisee in India. The company operates 40 quick- service restaurant (QSR) outlets and has added other international brands apart from Subway to its menu. Street Foods of India serves roti-kababs and rajma-chawal though kiosks, bakery cafe Bakers Street at airports, Pino’s Pasta Pizza and Rapps. It will also franchise US-based fried chicken brand Pollo Campero in the next few months. “We intend to become a restaurant chain with 200 outlets, including 30 QSRs, in three years,” he added.
Consumers’ growing penchant for eating out and taking quick meals in between long working hours has spawned a boom in the Indian QSR industry. Across the country, businessmen are either venturing into QSR market on their own or through franchisee tie-ups with foreign chains such as Domino’s and Papa John. Unlike fine dining restaurants, QSRs largely operate through smaller self-service outlets that provide value-for-money food that can also be consumed while on the go. It is estimated to be worth about Rs 2,500 crore and is growing at 30-40% annually.
Bangalore, which is a favoured choice for many people to open restaurants, has also seen an explosion in the number of QSRs in the recent past. This includes Spencer’s Retail’s Au Bon Pain, Global Franchisee Architects’s Cream and Fudge Factory and Donut Baker as well as Italian coffee brand Caffe Pascucci. US chain Melting Pot is ready to invest $5-$7.5 million in the Indian market by 2010.
“Many international franchise food brands are successfully operating in the country and these success stories have sent positive signals to other US franchisors to actively look at India for expansion,” said US Consulate’s principal commercial officer, Aileen Crowe Nandi. The consulate recently held a programme to introduce Indian entrepreneurs to American fast-food outlets such as CKE Restaurants, Round Table Pizza, Tropical Sno, Melting Pot and Church’s Chicken.
QSR segment operates on a high volume-low margin business model. Not only does it focus on delivering products with speed within high footfall areas but its ability to push sales even in recent months by tapping into captive audiences at malls, educational institutions and airports through evolving formats such as kiosks, drive-ins or even take-away joints has been critical.
“India offers tremendous opportunity due to its sheer size which will see the Papa John’s outlets quadruple to 100 in four years,” said Tapan
Vaidya, general manager, restaurant division, of the Jawad Business Group—the franchisee for pizza take-away chain Papa John’s in India and Middle East.
International brands are not the only ones to cash in on this trend. Local entrepreneurs have jumped into the fray with different concepts and ideas. Sunil Cherian, who runs the Chennai-based Burgerman is one such. Burgerman’s core business proposition is to offer 25 burger variants within a 25 sq ft kiosk. With 50 outlets in Chennai and 30 in Bangalore by the month-end, the chain has tied up with retail chains to grab captive consumers at Big Bazaar, Foodworld, Nilgiris or even HPCL and BPCL.
BuddyChef, which comes from the stables of Pune’s organic farming firm Orgreen, aims to sell pre-cooked Indian and Chinese meals under $1 across every pin code. With seven outlets across Pune, it is selling 5,000 meals a day across the counter to working couples, students and small offices.
Franchising has been a catalyst in fuelling the QSR concept in India. Sanjesh Thakur, Ernst & Young’s associate director, retail & consumer products practice, says that around 17% of the F&B outlets within the organised sector are operated through franchisees and over 30% of the upcoming outlets are projected to be based on this model.
The QSR trend was kicked off by the likes of McDonald’s and Yum! Restaurant’s KFC, which began operations in the 1990s. “Since the market opened up in the ‘90s, consumer habits including eating-out behaviour has gradually undergone a change,” said KFC India’s marketing director Unnat Varma. KFC added 27 outlets last year taking its total count to 72.
All this growth needs money and investors have started opening their purses to the industry.
Bangalore-based East West Ethnic Foods, the holding company of wraps chain Kaati Zone which is adding 100 outlets by next fiscal across Maharashtra, is in talks with two-three private equity players to raise between Rs 12-15 crore.
It received its first round of funding from Accel Partners India, Draper Investment company and the founder of Helion Ventures, Ashish Gupta.
Source:30 Dec 2009, 0006 hrs IST, Sarah Jacob, ET Bureau
provide an idea for a unique business opportunity.
In 2006, the US-returned Burman and his friend Rohit Aggarwal were in Saket, standing outside one of the outlets of the international chain, Subway. The place was crowded, with people, especially in the 18-35 age group, buzzing in and out constantly. Burman and Aggarwal paused their conversation and wondered if there was a business opportunity here.
“Franchising Subway began as a hobby,” Burman says laughing. In the initial months, the team had to work on creating the sandwich category and tailoring it to local tastes. The classic cold-cut turkey and tuna subs had to share space with chicken tikka and chicken seekh kabab fare. “People were very doubtful about the venture and would ask if I planned to make sandwiches all my life,” jokes Burman.
He needn’t have worried. In three years, Burman’s Lite Bite Foods has become Subway’s largest franchisee in India. The company operates 40 quick- service restaurant (QSR) outlets and has added other international brands apart from Subway to its menu. Street Foods of India serves roti-kababs and rajma-chawal though kiosks, bakery cafe Bakers Street at airports, Pino’s Pasta Pizza and Rapps. It will also franchise US-based fried chicken brand Pollo Campero in the next few months. “We intend to become a restaurant chain with 200 outlets, including 30 QSRs, in three years,” he added.
Consumers’ growing penchant for eating out and taking quick meals in between long working hours has spawned a boom in the Indian QSR industry. Across the country, businessmen are either venturing into QSR market on their own or through franchisee tie-ups with foreign chains such as Domino’s and Papa John. Unlike fine dining restaurants, QSRs largely operate through smaller self-service outlets that provide value-for-money food that can also be consumed while on the go. It is estimated to be worth about Rs 2,500 crore and is growing at 30-40% annually.
Bangalore, which is a favoured choice for many people to open restaurants, has also seen an explosion in the number of QSRs in the recent past. This includes Spencer’s Retail’s Au Bon Pain, Global Franchisee Architects’s Cream and Fudge Factory and Donut Baker as well as Italian coffee brand Caffe Pascucci. US chain Melting Pot is ready to invest $5-$7.5 million in the Indian market by 2010.
“Many international franchise food brands are successfully operating in the country and these success stories have sent positive signals to other US franchisors to actively look at India for expansion,” said US Consulate’s principal commercial officer, Aileen Crowe Nandi. The consulate recently held a programme to introduce Indian entrepreneurs to American fast-food outlets such as CKE Restaurants, Round Table Pizza, Tropical Sno, Melting Pot and Church’s Chicken.
QSR segment operates on a high volume-low margin business model. Not only does it focus on delivering products with speed within high footfall areas but its ability to push sales even in recent months by tapping into captive audiences at malls, educational institutions and airports through evolving formats such as kiosks, drive-ins or even take-away joints has been critical.
“India offers tremendous opportunity due to its sheer size which will see the Papa John’s outlets quadruple to 100 in four years,” said Tapan
Vaidya, general manager, restaurant division, of the Jawad Business Group—the franchisee for pizza take-away chain Papa John’s in India and Middle East.
International brands are not the only ones to cash in on this trend. Local entrepreneurs have jumped into the fray with different concepts and ideas. Sunil Cherian, who runs the Chennai-based Burgerman is one such. Burgerman’s core business proposition is to offer 25 burger variants within a 25 sq ft kiosk. With 50 outlets in Chennai and 30 in Bangalore by the month-end, the chain has tied up with retail chains to grab captive consumers at Big Bazaar, Foodworld, Nilgiris or even HPCL and BPCL.
BuddyChef, which comes from the stables of Pune’s organic farming firm Orgreen, aims to sell pre-cooked Indian and Chinese meals under $1 across every pin code. With seven outlets across Pune, it is selling 5,000 meals a day across the counter to working couples, students and small offices.
Franchising has been a catalyst in fuelling the QSR concept in India. Sanjesh Thakur, Ernst & Young’s associate director, retail & consumer products practice, says that around 17% of the F&B outlets within the organised sector are operated through franchisees and over 30% of the upcoming outlets are projected to be based on this model.
The QSR trend was kicked off by the likes of McDonald’s and Yum! Restaurant’s KFC, which began operations in the 1990s. “Since the market opened up in the ‘90s, consumer habits including eating-out behaviour has gradually undergone a change,” said KFC India’s marketing director Unnat Varma. KFC added 27 outlets last year taking its total count to 72.
All this growth needs money and investors have started opening their purses to the industry.
Bangalore-based East West Ethnic Foods, the holding company of wraps chain Kaati Zone which is adding 100 outlets by next fiscal across Maharashtra, is in talks with two-three private equity players to raise between Rs 12-15 crore.
It received its first round of funding from Accel Partners India, Draper Investment company and the founder of Helion Ventures, Ashish Gupta.
Source:30 Dec 2009, 0006 hrs IST, Sarah Jacob, ET Bureau
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