News

KFC plants flag in East Africa

August 23, 2011

KFC opened its first unit in Nairobi, Kenya this month, marking the first American quick-service chain to have a presence in East Africa.

According to the Associated Press, the plan to bring KFC to Kenya has been in the works for more than a year in order to secure the right Kenyan chicken supplier to meet quality control standards put into place by parent company Yum! Brands Inc.

Other chains have been reluctant to enter the market because of concerns over supply chain guidelines; however predictions are pointing to a rush of U.S. chains into the potentially profitable region.

According to the story, Kenchic, KFC's Kenyan chicken supplier had to make procedural changes to ensure the product was kept cold throughout the transportation process, and that proper tracking data was available in the event of a recall.

Although this is the chain's first footprint in East Africa, KFC has a sizable presence in South Africa, with additional expansion plans there. In Nairobi, plans call for two more units to open this year, and 15 to open in Kenya, Tanzania and Uganda in the next three years.

From the story:

The national chairman of the Kenyan National Chamber of Commerce and Industry, Laban Onditi, said the fact that KFC chose to open in Kenya first, among all other East African countries, shows the country is an investment destination. "In Kenya there is still a very virgin market that has not been fully tapped," he said.

Kenya does have fast food restaurants from South Africa, like the hamburger restaurant Steers. It also has Pizza Inn and Chicken Inn, but no American chains until now.

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