QSR allocates RM1 billion as capex for next five years

KUALA LUMPUR: QSR Brands (M) Holdings Bhd (QSR) has allocated RM1 billion as capital expenditure (capex) for the next five years to open new restaurant outlets, as well as for image enhancement efforts in Malaysia.

Managing director Datuk Seri Mohamed Azahari Kamil said QSR, the franchisee of KFC restaurants and Pizza Hut, planned to open 67 new KFC outlets, an additional 50 KFC outlets at Petronas stations and 60 new Pizza Hut restaurants in the next three years.

Speaking to reporters after signing a memorandum of understanding with Kepong Industrial Park Group of Companies (KIP Group) yesterday, he said the company also planned to upgrade close to 20 per cent of its stores for a fresh new look.

QSR currently operates 810 KFC restaurants in Malaysia, Singapore, Brunei and Cambodia and 380 Pizza Hut restaurants in Malaysia and 80 in Singapore.

Azahari said QSR would focus on a new strategic partnership programme where the partners would identify suitable sites with lots of traffic.

He said KFC and Pizza Hut receive about 25 million and six million customers per month, respectively.

“With a lot of integrated property development areas mushrooming, we see a lot of potential to collaborate with developers to jointly build infrastructure, so that we could deliver the best service,” he said, adding, QSR had signed with four developers and was in talks with seven more.

Meanwhile, KIP Group chief executive officer Valerie Ong said the collaboration with QSR would potentially boost future occupancy rates and earnings.

She said with a KFC restaurant on its premises, the group expected an additional 1,500 foot traffic daily, adding that the group also planned to expand its collaboration with QSR.

On the development of its listed company, KIP REIT, she said the fund portfolio currently comprised five KIP Mart properties, with an outlet each in Tampoi, Kota Tinggi and Masai (Johor), Senawang (Negeri Sembilan) and Melaka respectively and a shopping mall in Bangi.

KIP REIT had 87,323.46 sq m of net lettable area and RM614.93 million in total asset value as of Sept 30 this year.

Ong said the group was in the midst of evaluating five proposals for further acquisitions and is expected to surpass the RM1 billion mark in asset value by 2019. — Bernama