Yum Brands targets Indonesia

19 April 2011

JAKARTA: Yum Brands, the owner of restaurant chains KFC and Pizza Hut, is heightening its focus on Indonesia's young and increasingly affluent population.

The US multinational operates in the country through a tie-up with indigenous partner PT Fastfood Indonesia, and hopes to rapidly expand its activity going forward.

KFC first established a local franchise in 1979, and having recently opened a 400th Indonesian outlet, now leads the quick service category.

Pizza Hut, the premier player in the casual dining sector according to its parent, also boasts over 200 branches.

“By 2015, we expect to have more than 1,000 KFC and Pizza Hut restaurants in Indonesia,” Siddharth Varma, managing director of Yum Restaurants International Asia's franchise business unit, said in a statement.

“We believe we have a long runway for growth in this dynamic emerging market. We have only two restaurants per million people in a country where nearly 50% of the population lives in urban areas.”

The company argued Indonesia's sizeable, and largely youthful, 245m residents, alongside a burgeoning middle class, leave it well placed to drive up revenues.

Yum Brands currently has 37,000 restaurants in 110 nations, and is boosting its emphasis on several other Asian geographies, such as China and India.

Warc subscribers can read a range of new insights into Indonesia's consumers and trading climate in the recently-published paper, "Marketing in Indonesia – Market Overview and Review of Best Practice".

Data sourced from Yum Brands; additional content by Warc staff