KFC India looks to sell its 61 equity owned restaurants to the RJ Corp-promoted Devyani International (DIL) for an undisclosed amount, in line with its global strategy to exit capital-intensive operations and focus on brand growth and development. As part of the agreement, DIL, already Yum!’s biggest franchise partner in India, will acquire 61 additional restaurants in Karnataka, AP, and Telangana.
Yum’s other brand in India, Pizza Hut, is already entirely franchised. DIL is Yum’s oldest franchise partner in the country with an operating footprint of close to 500 KFC and Pizza Hut restaurants. With the latest divestment, less than 10% of KFC India’s 400 outlets across over a hundred cities are now company-operated.
Going forward, the company is targeting to better last year’s expansion of setting up 50 additional outlets, which are predominantly expected to be through franchisees. National Restaurant Association of India estimated the food service industry at Rs 4.2 lakh crore in 2018-19, and forecast to grow 9% by 2022-23 in a report released last month.