KFC uses franchisor strategy for growth
Yum Restaurants International Thailand, the operator of the KFC fast-food chain, expects KFC sales to achieve double-digit growth this year thanks to the brand’s total conversion to franchising.
Waewkanee Assoratgoon, general manager of KFC for Yum Restaurants International Thailand, said this year the chain’s move to being a total franchisor has enabled it to create innovative products and services.
“Our organisation is in good shape with an effective structure so we can expect high efficiency in the entire operation,” said Ms Waewkanee.
“As a brand guardian, our key roles are to create marketing campaigns, provide guidelines, support franchisees and business partners to keep up with the brand’s standard and assist them in making a customer complaint recovery plan and crisishandling protocol.
“Through the collaboration with franchisors, KFC has been able to achieve not only the largest number of restaurants and unique signature fried chicken, but also the distinctive and beloved brand that we are strengthening.”
She said KFC provides franchisees with the essential know-how for business expansion and profitability.
“Through our collaborative model and support, we expect to reach 701 KFC restaurants in the chain by the end of 2018, 65 out of which are the drive-thru model,” said Ms Waewkanee.
Of the total, 258 KFC restaurants are being operated by Central Restaurant Group, KFC Thailand’s first franchisee, which this year opened 22 new restaurants.
Another 273 are being operated by the latest franchise partner, QSR of Asia, which has invested heavily this year on store renovations at its 47 restaurants.
Restaurant Development, the fastestgrowing franchisee, recently celebrating its second anniversary as KFC’s franchise partner, growing to 170 restaurants from 130 in 2016.
“Urbanisation enables us to open more stores, especially under the drivethru model in areas outside Bangkok. We want to expand our chain to cover 1,000 stores by 2020, at least 100 of which will be drive-thru,” she said.
“Our success comes not only from Yum, but our overall corporate franchise partners, who put together a capital fund, innovation, and hard work to drive the highest new unit growth in the brand’s history in Thailand.
“This makes Thailand the eighth-largest KFC market in the world and KFC the fastest-growing restaurant brand in Thailand.”