Yum Restaurants International (Thailand) Co, the franchiser of KFC in Thailand, has sold 130 KFC branches to Restaurant Development Company Ltd (RDCL) as part of a strategic move to speed branch expansion to reach 800 by 2020.
Under the agreement, RDCL gets the rights to run these 130 KFC branches and open 100 new stores in Bangkok and southern Thailand.
The transfer of KFC store operations and 3,000 staff to RDCL will be completed by year-end, said Waewkanee Assoratgoon, general manager of Yum Restaurants International (Thailand).
RDCL is a joint venture of several Thai and Asian investors that appointed a management team led by Asean Industrial Growth Fund (AIGF), whose sponsors include Mitsubishi Corporation and Development Bank of Japan.
"RDCL is now our new KFC franchisee," Ms Waewkanee said. "The deal will support the brand's growth strategy to 800 stores in Thailand by 2020 or an additional 215 stores from 2016."
Central Restaurants Group (CRG) remains a KFC franchisee. CRG has the exclusive right to open KFC branches at CentralPlaza shopping complexes, Robinson department stores and other locations across the country with the approval of Yum Restaurants.
As of last year there were 550 KFC stores in Thailand, of which 205 were under CRG and 345 under Yum.
Ms Waewkanee said Yum expects the total to reach 585 this year, with 217 run by CRG, 238 by Yum and 130 by RDCL.
By 2020, the total number of KFC stores across Thailand will reach 800 with the expansion by Yum, CRG and RDCL. The additional 215 new branches from now until 2020 will require an investment of 15-30 million baht per store.
The expansion will add an estimated 6,500 jobs to the market.
"I'm excited to have a tremendous opportunity to expand this outstanding brand together," said Andrew Norton, chief executive of RDCL.
"We have a strong organisation, financial resources and entrepreneurial vision to help KFC Thailand achieve its goals and we look forward to a bright future. We will ensure faster KFC growth than ever before."