Yum! Restaurants India picks up stake in its largest Franchise DIL

Yum! Restaurants India had an ‘exceptional quarter-basis value innovation and expanding digital channels’, shared David Gibbs, Global CEO, Yum! Brands in a post earnings call for the fourth quarter.

“India had another exceptional quarter with 12% same-store sales growth, ending the year with 10% same-store sales growth,” said Gibb by adding that the momentum is attributable to marketing around value innovation and expanding digital channels.

He also named India, Canada, Japan and Europe as markets with internationally strong sales momentum for the year.

Also, Yum! Restaurants, has picked up minority stake in its largest franchise partner RJ Corp-owned Devyani International (DIL). This follows DIL’s acquisition of 74 KFC restaurants from Yum! over the last 18 months.

“Yum! is looking at India as its next biggest bastion of growth after China, and the strategic equity investment strengthens our association with them,” said Ravi Jaipuria, Chairman, RJ Corp.

At present DIL operates 500 KFC and Pizza Hut stores in India.

Yum! Restaurants runs chicken fried brand KFC, Pizza Hut and Mexican restaurant Taco Bell in India with over 1000 restaurants running presently.

 “Over the next five years, DIL plans to invest over 1,000 crore in growing its brands including KFC, Pizza Hut, Costa Coffee, Vaango and food courts,” shared Virag Joshi, President, Devyani International Limited.

Besides DIL, its other franchise partner in India is Sapphire Foods, that is owned by Samara Capital.