'KFC sales encouraging'

HARARE - Zimbabwe's love for fried chickens has seen the recently opened KFC outlet recording encouraging business despite a decrease in disposable income for most locals.

KFC marked its return in July after a five-year absence amid long queues, signalling increased competition in a fast food sector traditionally dominated by Innnscor Africa and Chicken Slice.

Local franchise owners Country Bird Holdings (CBH) chief executive Marthinus Stander told South African media recently that initial demand and support for the KFC outlet had been encouraging, despite the difficult economic conditions still experienced in the country.

Johannesburg Securities Exchange-listed CBH, which has an interest in poultry and stock feed business operations in South Africa operating as Supreme and Nutri Feeds and poultry breeding operations in South Africa, Namibia, Botswana and Zambia as Ross Africa Ltd, was awarded KFC local rights in 2011.

The company, which ventured into the fast food sector as part of a diversification strategy and eyeing to open 25 other local outlets, delayed its initial launch date after a government pre-condition of using local poultry and complying with the empowerment laws.

Ironically, the company has been linked with a chicken supply agreement with Irvines, majority owned by Innscor, owners of Chicken Inn, Steers, Nandos, Pizza Inn among other food brands.

CBH’s per-store capital investment was estimated to be $713 236, with potential annual revenue of $5,9 million per store on an above-average operating margin.

The group, along with other international firms, is re-considering a return to Zimbabwe after the adopting of a multi-currency system.

American fast food chain Burger King Worldwide Incorporated (Burger King) last year expressed plans to open outlets in Zimbabwe as part of efforts to spread its footprint in the sub-Saharan region.

KFC is an international fast-food brand owned by Yum Restaurants International, with a presence in more than 80 countries.

Comments (3)

This welcome development for the economy. Jobs, GDP etc. But a disaster for the nation's health. Obesity, cardiovascular diseases, diabetes will rise as a sum total of all the activities of these "unhealthy" fast food vendors. Just look at the havoc they are wreaking in the USA and globally. Cry the beloved country.

Mfanasibili - 18 September 2014

I for 1 am pleased they have opened as it sure beats Greasy Inn's stale food.

Zims - 18 September 2014

If it was old Zimbabwe currency, I wonder would it cost few millions to get a KFC?

Reader - 18 September 2014

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