New Delhi franchise news india: American fast food chain Yum Brands Inc. that runs Pizza Hut, Kentucky Fried Chicken (KFC) and Taco Bell chain of restaurants will invest close to $100 million franchise in India over the next 3-4 years, the company said in a statement on Tuesday.

This is part of the $10 billion the company will invest in emerging markets by 2020 to cater to their growing middle classes.

At the launch of the company’s 40,000th restaurant worldwide—which happened to be in Goa—David Novak, chairman and chief executive, Yum Brands, said, “Together with our growth-ready franchise partners, Yum Brands plans to invest $10 Billion and have more than 20,000 restaurants in emerging markets by 2020.”

Yum Brands has two restaurants per million people in the top 10 emerging markets, compared with 58 per million in the US. “We are only on the ground floor of global growth. India is one of the biggest emerging market opportunities in the world and we are thrilled to celebrate our 40,000th restaurant here,” Novak said.
By 2015, the company aims to have 1,000 KFC, Pizza Hut and Taco Bell outlets in more than 100 cities in India. Currently, the company operates 500 restaurants here.

Countries such as India, with a growing middle class and heightened aspirations, are potent markets for consumer companies such as Yum Brands.

However, the company has had some glitches in the Indian market—it’s Mexican fast food chain Taco Bell has seen sluggish growth, with only four outlets since the brand’s launch in 2010. Of late, the Indian middle class has been cutting down on discretionary spends.

Niren Chaudhary, president, Yum Restaurants India, however said that, “Our growth in the country can be attributed to a successful brand building strategy focused on providing exceptional customer service, deep penetration across tier-I and tier-II cities, localized menu offerings and a skilled yet diverse workforce. As we grow our business, we also invest in the local communities with an aim to make a positive impact on the lives of millions of people. We maintain a positive outlook on the Indian market and look forward to reaching the 1,000th restaurant milestone by 2015.”