KFC to buy more than 200 restaurants from billionaire owners of Asda

06 December 2023 , 13:39

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KFC is headquartered in Louisville, Kentucky (Image: Getty Images)

KFC has announced plans to purchase more than 200 outlets from EG Group, a franchisee and sister company of supermarket Asda.

These sites, located in the UK and Ireland, employ around 7,800 people. About half of these 218 locations are drive-throughs, according to KFC, which is owned by Yum! Brands, the firm behind Pizza Hut and Taco Bell. Previously, these sites were under the ownership of Blackburn-based EG Group, owned by the same brothers who acquired Asda in early 2021.

Sabir Sami, KFC division chief executive, said: "The KFC business is a powerhouse for Yum! globally and the UK and Ireland is one of our strongest markets. Over the past five years, we've secured our leadership position within the UK and Ireland chicken market, opening 200 new restaurants, and we're now close to being a £2 billion business in the UK, thanks to our extremely talented local management team."

He added: "We're pleased to add these restaurants to our equity portfolio, in a market where we are well placed to drive strong growth while also making further digital and strategic progress."

EG Group revealed that the sale, expected to be finalised by next summer, will assist in paying off some of its loans. EG Group also operates franchise sites for Starbucks, Greggs and Subway, among others.

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EG co-founders Zuber Issa and Mohsin Issa stated: "We are proud to have been a strategic partner of KFC in the UK and Ireland, playing an important role in helping the brand expand its footprint. Now is the right time to hand the baton to the KFC leadership team to continue to grow the brand in the UK. This is the latest transaction in our significant deleveraging this year to put in place a sustainable capital structure."

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PA Business Reporter