Julie Jargon (seriously!!) of the Wall Street Journal reports today that Yum Brands, who own the KFC brand (which those of us over 50 remember as Kentucky Fried Chicken and Colonel Sanders) will begin to expand in Africa:
KFC Savors Potential in Africa
Yum Brands Unit Plans to Double Number of Outlets on Continent, Where Middle Class Is Growing
BY JULIE JARGON
After spending two decades introducing fried chicken and pizza to Chinese consumers, Yum Brands Inc. now sees Africa as its next international jewel.
By 2014, the Louisville, Ky., restaurant-holding company expects to double its number of KFC outlets in Africa to 1,200. In the next four years, it aims to more than double its revenue on the continent to $2 billion.
“Africa wasn’t even on our radar screen 10 years ago, but now we see it exploding with opportunity,” says David Novak, Yum’s chairman and chief executive officer.
They cite improved political stability of various African governments and the region’s vast population and rapid population growth as factors in this decision. This has many ramifications – while it’s good news that the African middle class is expanding, the bad news is that the KFC food is unhealthy and it will displace other African-owned small enterprises. Not a good news story, from my point of view.