The KFC restaurant brand has designed a strategic plan by which it expects to double its weight in our country in three years and go from the current 93 stores to more than 200.
Specifically, the company estimates that it will be able to open 120 establishments before the end of 2020, placing special emphasis on areas where it now has less presence, such as Andalusia, the Canary Islands or Castilla y León. If achieved, all these new restaurants would operate under the umbrella of the franchise, whose cost is around one million euros, and at least half would work in the chalet format, as explained to the Franchise Economist Manuel Zamudio, director of KFC Spain.
The manager, a Mexican and a mechanical engineer by training, assures that our country has a lot of potential not only for KFC, but for Pizza Hot and Taco Bell, the other two restaurant brands that are part of Yum Brands, a multinational to which he has been linked for 15 years. Taking into account the three brands, Zamudio assures that the group could reach 400 operating establishments in Spain and Portugal in a horizon not much further than three years.
Five years after occupying the general management of KFC Spain, what is your assessment of the evolution of the company in our country?
It is true that I arrived in Spain in the midst of a crisis, but? I have been caught by all the crises in all countries. In Mexico every six years I had a crisis, when I arrived in England in 2009 I had another one, when I arrived in Spain in 2011, another one? For me the crisis is already normal. And here, with her, we have opened more than 30 stores in the last five years and we have managed to get people to trust our brand, to change the concept they had of KFC.
How many stores does KFC have in Spain?
95. When I got here the brand was 63. We have opened more than 30 restaurants and we have transformed the business. In offices we have 35 people compared to the eight that there were when I arrived, and we have managed to get KFC into a new type of investment that is the chalet. When we opened the first restaurant under this model in Alcalá de Henares (Madrid) in 2012, the brand changed, people began to say “this is something else!”, and that began to generate a lot of confidence internally and, above all, for franchisees.
Why bet on the chalet format?
Because it is a much more independent business, in which you do not depend on any shopping center. When you have a restaurant in a villa, you mark your own destiny, you are visible, in a place with a lot of traffic and you do not depend on whether the mall is doing well or not.
Of the 95 current restaurants, how many have the chalet format?
About thirty. And the idea is that half have that format.
What is the photograph that KFC has designed for 2020 in Spain?
As we see the recovery of the economy, we see the potential to be able to open 120 restaurants in three years. The idea is to double the KFC network by 2020, including those in Portugal. Last year we have opened 20 restaurants, the previous year 12 and this year we hope to exceed those figures.
That gives an average of about two openings per month…
Yes. In December, for example, we opened three restaurants, and we already have openings planned for this month of February and March.
Of those 120, how many premises will be chalet-type and how many will be your own?
They will all be franchises. Half will have chalet format.
And the other half?
The other half will be at street level and in shopping centers that have traffic.
What is the investment needed to execute those 120 openings?
We estimate that the franchisees of our brand will have to invest together more than 100 million euros.
In which areas of Spain is KFC stronger?
We have a presence in Madrid and Barcelona, which is where we have had a greater concentration. Now we are beginning to attack an area that we had almost empty, which is Andalusia. There we already have restaurants in Jerez de la Frontera, Malaga, Granada, Seville?
What geographical areas are interested in KFC in Spain for its expansion?
The focus is everywhere. Andalusia and the Canary Islands have a lot of potential, we are opening in Castilla y León and looking at the options in tourist areas such as the Balearic Islands and Levante.
What changes has the commitment to the chalet format generated for KFC?
Especially seeing that KFC has become a close brand for the Spanish consumer, who recognizes the quality of our products.
Have there been changes in the pricing policy?
The category has always distinguished itself by being competitive in prices. You have to adjust prices by making offers and have products for which the consumer is willing to pay. That is why we have launched products to share for less than 10 euros.
What is the average ticket for KFC in Spain?
It is around 10 euros. It is higher than in the category, but not because people spend more in our restaurants than in others, but because mainly groups come to our premises.
How has KFC managed to grow with that average ticket in the crisis?
With national television campaigns. This allowed the consumer, who had an old image of the brand, to tell himself that it was worth trying KFC again.
What is the profile of the KFC customer in our country?
The profile has evolved. Mostly we have groups of people including families or co-workers going out to eat.
Are KFC suppliers Spanish?
Those of chicken pieces, which is what we sell the most, yes. The rest are European suppliers. As we grow in Spain, we will look for local supply. What fills us with pride is that we have achieved the Q for tourist quality.
How much does it cost to open a KFC franchise?
The investment is mainly derived from opening a restaurant. This investment oscillates between 800,000 euros for a local street. We do not want small restaurants, a minimum of 300 or 350 square meters. We try to have restaurants that can tell the story of KFC for a minimum of between 100 and 120 diners, and can accommodate large kitchens, since we have fresh product.
And for the premises in chalet format?
We are talking about an investment of between one million and 1,100,000 euros.
What is the profile of the KFC franchisee?
We look for three things in our franchisees: that they have the financial capacity to be able to invest, operational depth and cultural alignment, so that we understand each other.
Do you have many foreign franchisees living in Spain?
We have some foreign franchisees, but almost all the new ones in the last three years are Spanish.
What weight does Spain have for the group?
It is a country that we see a lot of potential, because it is one of the few where we have the three brands involved -Pizza Hot, KFC and Taco Bell-. It is still small. We have close to 100 restaurants when globally we have 20,000. Between the three brands we could reach 400 establishments between Spain and Portugal in a horizon of about three years.
Which is the most powerful country for the group in the world?
China. In Europe it is England.
How do you see the competition?
Spain is a super dynamic market. There are no boring days. It is an industry that has been greatly revitalized. I love competition. When there is healthy and dynamic competition, the one who always wins is the consumer. We have great respect for our competitors, both large and small. New concepts help us see that we cannot remain static.
Is KFC considering home delivery?
We are doing it with 10 of our restaurants, in the Levante area and on the islands. Now we are evaluating whether or not we should extend it to the rest. The delivery business has potential. The question is whether it will be profitable.
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