KFC's Ayamas Expansion

For a change, let us hear about some new directions that KFC is taking.

KFC Holdings (Malaysia) Bhd (KFCH) currently has 50 Kedai Ayamas outlets in the country. It intends to open 25 new outlets in 2011.

Each outlet will cost RM350,000 and total investments will add up to RM9 million.

Kedai Ayamas will begin its new delivery service. It will be piloted at eight outlets in the Klang Valley, with an initial investment of RM200,000.

KFC believes that the delivery service is relatively untapped and a great potential avenue for revenue.

Thee spokesman also intimated that KFC opened 15 outlets this year and recorded a sales growth of 43 per cent in the first nine-months of this year when compared with the whole of  2009.

He added between 65 per cent and 70 per cent of the new outlets coming up next year would be located around the Klang Valley.

"With our roll-out plan, we expect to maintain a double-digit growth next year. Our customers prefer to go to our Kedai Ayamas outlets simply because we can guarantee the quality of our chicken," he said.

He also said the company had three processing plants in the country currently with a combined capacity to process about 140,000 chickens per day.

"Over 60 per cent of the chickens are distributed to our existing outlets while the remaining will be refined into further processed products to be sold under the brand name of Ayamas," he said.

KFCH is currently a unit of Johor Corporation via its subsidiary, Kulim (Malaysia) Bhd which holds a 57.5 per cent controlling stake in QSR Brands Bhd, which in turn controls KFCH.

The rise,fall and rise again of the shares of KFC for the year is most interesting within the intended corporate takeovers background.