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Kfc in Africa Essay

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Below is an essay on "Kfc in Africa" from Anti Essays, your source for research papers, essays, and term paper examples.

Yum brand units plans to double up the number of outlets on the african continent where middle class is growing
KFC, which operates through Yum Restaurants International, already has a presence in 120 countries around the world and is seeking growth — and doing so successfully — in emerging markets. "Each country comes with different and unique challenges," says Doug Smart, KFC's general manager for Africa
One such challenge in South Africa could be substantial tariff increases. Local chicken farmers have long complained about their inability to compete with a flood of imports and the South African Poultry Association has proposed that the government increase import tariffs (from 27% to a maximum of 82%) to protect the industry, creating concern that it would send the price of chicken sky high.
While Africa is lauded as the next frontier for growth, KFC's tally in the rest of Africa is not as impressive as it is in South Africa or China, with just 70 stores on the rest of the continent, Nigeria being the biggest with 18.
The reason for this is that African countries require a lot more groundwork and the challenges can be as basic and as dire as sourcing chicken, and items like buns, lettuce and tomatoes.
As a result, the fast-food giant often teams up with local partners to smooth the way forward. Smart says that while KFC is seeking growth, it seeks quality growth on the continent and is at "that difficult stage" of setting up supply chains.
One such challenge in South Africa could be substantial tariff increases. Local chicken farmers have long complained about their inability to compete with a flood of imports and the South African Poultry Association has proposed that the government increase import tariffs (from 27% to a maximum of 82%) to protect the industry, creating concern that it would send the price of chicken sky high.
Types of ownership differ around the world. In some countries, KFCs are franchised only and in others, like South Africa, there...

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