The Hindu Business Line : Yum sees good potential in Indian market

YUM! Restaurants International (YRI), the global chain that owns Pizza Hut and KFC outlets, is bullish on the Indian market and plans to open a number of units across the country.

YRI has a network of 125 Pizza Huts and 11 KFC restaurants in the country. The YRI Managing Director (Indian Subcontinent), Mr Sandeep Kohli, cited the example of YRI's network in China to indicate the size of opportunities.

YRI has a network of over 1,500 KFC restaurants and more than 200 Pizza Huts in China. "We will definitely respond to the voice of Indian consumers and open any number of stores to cater to their needs," Mr Kohli told newspersons. The company proposes to set up at least 25 Pizza Huts and 15 KFC restaurants across the country in the next couple of years.

Mr Kohli was here on Friday to inaugurate YRI's first company-owned KFC store in the country. On the opportunities in Hyderabad alone, he said the company proposes to open four more Pizza Huts and KFC restaurants in the next one year. The company currently has five Pizza Huts and one KFC restaurant here.

"The very fact that we have decided to start equity (self-owned) restaurant indicates how bullish we are on the Indian market. Our plan is to build a national footprint and expand presence in all major metros in the coming year, both through franchisee and self-owned restaurants," Mr Kohli said.

Having already spent over Rs 50 core on R&D and supply development initiatives, YRI is willing to spend sizeable amounts in the Indian market. YRI has also decided to adopt a change in its business model in the Indian subcontinent by opening self-owned restaurants. YRI, which has hitherto opened all the Pizza Huts and KFC restaurants on a franchisee basis, now proposes to increasingly have company-owned stores. Over the next five years or so, it plans to have a network of 30 to 40 per cent company-owned stores.

The company plans an ad campaign from the beginning of next year once it opens KFC restaurants in Mumbai and Delhi, the YRI Chief Marketing Officer, Indian Subcontinent, Mr Arvind Mediratta, said.The company plans to open at least 10 KFC stores in Mumbai and Delhi shortly, he said.

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