Wednesday, December 8, 2010
KFC and the Emerging African Middle Class
(Wall Street Journal) — After spending two decades introducing fried chicken and pizza to Chinese consumers, Yum Brands Inc. now sees Africa as its next international jewel. By 2014, the Louisville, Ky., restaurant-holding company expects to double its number of KFC outlets in Africa to 1,200. In the next four years, it aims to more than double its revenue on the continent to $2 billion. “Africa wasn’t even on our radar screen 10 years ago, but now we see it exploding with opportunity,” says David Novak, Yum’s chairman and chief executive officer. The improved political stability of various African governments, the region’s vast population and a growing middle class in Africa—where chicken is a dietary staple—led Yum to set its sights on the continent.