BENGALURU - Devyani International of India says it will begin operating KFC outlets in Thailand after it acquired Restaurants Development Co in deal a worth $128.9 million, expected to be completed by March.
Restaurants Development Co is one of three KFC franchisees in Thailand, running 274 KFC outlets and employing more than 4,500 people.
QSR of Asia, owned by Thai Beverage Plc, is the largest KFC franchisee in Thailand, operating 430 branches, followed by Central Restaurants Group with 320, according to industry data from late 2022.
Restaurants Development began considering the sale of its KFC business in 2020 but the process was shelved due to the impact of the pandemic, Reuters reported earlier.
QSR of Asia had expressed an interest in acquiring the Restaurants Development operation, which would have resulted in just two franchisees in Thailand. However, Yum Restaurants Inc, the KFC brand owner, has found that having multiple franchisees in each country is a more successful business model.
Devyani acquired Restaurants Development through its Dubai unit in which it owns a 51% stake, while the Singapore-based state investment firm Temasek Holdings owns the remaining shares.
“Thailand is a strong poultry market in its basket of meat consumption and we believe there is an opportunity available for the market to grow even further,” Devyani said in a statement.
The acquisition will add to Devyani’s 500 KFC outlets in India, Nepal and Nigeria. The company also operates other quick-service restaurants in India such as Pizza Hut and Costa Coffee.