October 12, 2012
One hundred more KFC and Taco Bell outlets will be added across India, as part of Yum! Brands Inc's USD 100 million expansion plan for the country.
The next four to five years will see Yum! Brands Inc (Yum) investing USD 100 million in India as the fast-food chain owner expands in the country. This year alone, 100 new KFC and Taco Bell outlets will be launched in India.
According to Niren Chaudhary, President of Yum in India, the expansion is part of a plan to double the number of its restaurant outlets in India and selected countries to 1,000 by 2015.
The strategy selected for India follows that utilised successfully in China, which accounts for 44% of the company's revenue, added ceo David Novak.
"India is at the same point China was before it took off, in terms of macroeconomic parameters such as per capita income and export as a percentage of GDP," Chaudhary said. "We're an economy driven on the back of domestic consumption expenditure and therefore, as we have seen, we are likely to continue to be resilient even in the face of a global slowdown."
Last week, the International Monetary Fund revised downwards its 2012 economic growth forecast for India, and added that it expects expansion to rise to 6% next year as overseas markets improve and confidence increases on the back of a government policy revamp that occurred recently.
Researcher RNCOS E-Services Pvt said that India's fast-food industry is poised to expand to 146 billion rupees (USD 2.8 billion) by 2014 from just 47 billion rupees in 2010. This will be driven by growing urbanisation, a large middle class and an increasing workforce.
Another fast-food giant is also paying attention to India. McDonald's Corp is set to increase the number of McDonalds restaurants in the country by 100% within the next four years, said country managing director Vikram Bakshi.
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