Yum! Brands Will Open 100 New KFC Stores in Africa in 2012
Yum! Brands (NYSE:YUM) announced today that it will expand its KFC fast-food chain into seven more countries across Africa this year, adding 100 new stores. The restaurant company added that it expected to double the number of KFC outlets in Africa to 1,200 by 2014.
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In 2011, KFC outlets were opened in Zambia, Ghana, and Kenya. This year, Yum will invest $74 million in building stores in Angola, Malawi, Tanzania, Uganda, Angola, Zimbabwe, Congo, and Madagascar.
Yum’s Africa division is also looking to bring Pizza Hut to South Africa this year or next, Keith Warren, general manager for Africa operations, said in an interview on Tuesday.
The push to expand across Africa, in which Yum is joined by many other retailers and food companies, is being driven by a rising middle class, which the African Development Bank estimates will increase to 1.1 billion people by 2060 and account for 42 percent of the continent’s population. In Africa, middle class is defined as those earning between $4 and $20 a day.
While most of the developed world is facing an economic slowdown, the International Monetary Fund estimates that economic growth in sub-Saharan Africa will be nearly 5.8 percent this year, outstripping a global average estimated to be around 4 percent this year.
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