HARARE: Kentucky Fried Chicken’s local franchise plans to spend over US$17 million on 25 new branches over the next five years on the back of better-than-expected performance at Belgravia and Joina City outlets in Harare.
Sources told The Sunday Mail Business last week that management expected each store to generate annual revenue of US$5,9 million.
“KFC is set to establish up to 25 shops around the country as they were pleased with a great reception that (Belgravia and Joina City) received. KFC Zimbabwe has exceeded expectations so the management has already agreed with the parent company in South Africa to set more branches late this year or early next year,” said the sources.
The per-store capital investment was estimated to be US$713 236, with potential annual revenue of $5,9 million per store on an above-average operating margin. KFC’s Zimbabwe operation is majority-owned by Country Bird Holdings, a Johannesburg-listed company, with the remainder local hands.
Businessman Mr Kevin James – owner of Consolidated Farming Investments and a leading investor in the fast food sector in Zimbabwe – is behind KFC’s reopening. He is also the CEO of Country Bird Holdings, South Africa’s third-biggest chicken supplier.
One of the United States’ biggest franchises, KFC operates in more than 80 countries and the two shops in Zimbabwe are part of over 700 franchises in Africa. KFC used to have outlets in Harare and Bulawayo but it closed shop in 2007.
Although there was a slight glitch when the company reopened in July last year as it haggled with local authorities on the use of imported chicken, the dispute was amicably resolved and the business is now getting its supplies from Irvines Zimbabwe.
