“We have grown from 50 stores in 2009 to 100 stores today. We plan to add 70 to 75 stores every year and aim at reaching the milestone of 500 stores by 2015,” Unnat Varma, Director Marketing, KFC, told PTI.
KFC has been expanding in the cities where it is already present and also entering new ones. It plans to increase its presence from 21 cities now to around 75 cities by 2015. The company is keen on entering new cities like Madurai, Salem, Hubli, Mysore in the south and Kanpur, Allahabad in the north.
“Surprisingly, we have seen higher sales traction in some smaller cities,” Varma said. Stores in Dehradun, Amritsar, Vishakapatnam, Mangalore, Coimbatore are seeing good traction.
“This is just a tip of the iceberg”, he said. “We are confident of growing our business,” given the rise in disposable income, changing lifestyle among other factors. Though currently India market accounts for a very small part in KFC’s global business, it is expected to grow. “India is one of the fastest growing markets for KFC,” he said.
The company is also looking at introducing more products that are developed in India. The firm recently launched a new product, KFC Zinger, a vegetarian burger developed in India and for India. It also introduced an Indian vegetarian of a spicy sprinkler to the Chicken popcorn product, he said.
The plans for expansion in India include three formats – high street location, malls and food courts. “We are also looking at drive-throughs. We currently are in two drive-throughs in Punjab and one in Hyderabad”, Varma said.
Noting that the branded Indian eat out and home delivery market was around two to three per cent, he said KFC hopes to garner the leading position in this market.
Out of the 100 KFC stores opened so far, 50 were company owned. Going forward, 70-75 would be company owned, Varma said.
“The market is growing at 25 per cent per annum, we are growing at 75 per cent CAGR in the next five years,” he said.
“We are looking at a very strong multi-million dollar business”.