Yum! Moves Into Mega Expansion Mode

Neeti Chopra - New Delhi

Nine years after setting up shop in India, Yum! Restaurants International (YRI), plans to add 25 Pizza Hut outlets and seven Kentucky Fried Chicken (KFC) restaurants by the end of this year.

Says Pankaj Batra, director marketing-Indian sub-continent, YRI, "The middle-class now, has more spending power. There has been an accompanying surge in the number of nuclear households, urban-employed women, western-educated youth and the overall expansion of the services sector. There has been a tremendous increase in eating out at international fast foods chains. This evolution in eating habits and food habits has encouraged Pizza Hut and KFC to expand its operations in India."

YRI will be expanding its operations and starting pizza outlets in places like Kanpur, Goa, Bangalore and other smaller locations. Pizza Hut operates through the franchisee model, with each new store requiring an investment of anywhere between Rs 1 crore and Rs 1.5 crore by the franchisee.

In addition to this, YRI also has international expansion plans to foray into neighbouring markets such as Sri Lanka, Mauritius and Bangladesh that are looked after through the Indian operations. With reference to introducing its other brands, namely, Taco Bell, Long John Silvers and A&W, the company has no plans to introduce them in India as yet.

Having established its presence in 25 cities with 101 restaurants, Pizza Hut's promotional strategy includes television campaigns that have set the standard for food advertising in this medium. The principle behind running these campaigns is to reiterate shared values and emotions that supposedly heighten the pizza experience.

Commenting on KFC's marketing strategy, Sharanita Keswani, director, KFC Marketing, KFC said that it would shed its low profile and roll out stores in major cities across India. It is already looking at opening outlets in metros like Delhi, Mumbai and big cities like Hyderabad, Pune and Ludhiana.