YUM! Brands planning 1,500 new franchise locations for 2008
The American fast-food group, YUM! Brands, which owns, among others, the Pizza Hut, Tacco Bell and KFC franchise chains, is planning to open more than 1,500 new fast-food units around the world next year. The company has announced that of these new locations, around 350 should be in the USA, at least 450 in China, Taiwan and Thailand as well as 750 franchise start-ups in around 50 other countries.
Furthermore, the company is looking to change many of its company-run outlets into franchise-run restaurants. Approximately 80 percent of the 34,000 restaurants located around the world are owned by franchisees and the aim is to increase this to 87 percent. Apparently YUM! Brands AG is expecting an increase in turnover of about 20 percent in China; forecasts are for operative profits to grow by 10 percent internationally and by 5 percent in the USA.