News

KFC boosts New Zealand franchise numbers

December 13, 2010

While KFC continues to challenge Yum! Brands’ U.S. sales, the quick-service chain seems to be having the exact opposite effect overseas.

Restaurant Brands New Zealand Ltd., which operates KFC, Pizza Hut and Starbucks Coffee throughout New Zealand, reported a 1.8 increase in third quarter sales, led by a strong performance at its KFC outlets.

Year-to-date, the franchisee’s sales were up 3.3 percent from the previous year, with same-store sales up 4 percent. These improvements were driven predominantly by KFC, which experienced a 6.2 percent boost in the quarter.

Meanwhile, the company’s Pizza Hut sales fell 12 percent, and sales declined 3.3 percent for its Starbucks units.

New Zealanders aren’t the only ones craving the Colonel’s Secret Recipe. Although KFC’s sales remain soft in the U.S. as the brand works toward improving operations and its bone-in chicken lineup, it seems to be a boon elsewhere.

Specifically, KFC plans to expand in the United Kingdom, where sales have been up for the past 18 quarters. Also, the brand’s exponential growth plan in India includes 500 units by 2015, from the about-100 stores that now exist.