The Traderszone Network

Published in TZ Latest News 23 October, 2015 by The TZ Newswire Staff

Eyeing China growth, Yum faces immature franchise market

As Yum Brands Inc (YUM.N) looks to triple its store footprint in China and revive flagging growth there, it faces a hurdle with one of its traditional growth drivers: the country’s underdeveloped franchise market. The parent of KFC, Pizza Hut and Taco Bell said this week it will spin off its dominant China business, where it aims to grow its restaurant count to 20,000 and bring in more franchise partners. China’s franchise market, however, has been held back by food safety worries, opaque supply chains and a lack of reliable partners, meaning companies often resort to managing stores directly.