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After Past Decade’s Failure, KFC Once Again Tries to Win Brazilians

KFC tries again to win Brazil

KFC tries again to win Brazil KFC first tried to establish itself in Brazil during the 1990s. That attempt, however, was a failure and from that time only four restaurants have survived, all of them in Rio de Janeiro. Now the American fast-food company is again trying to get a piece of the Brazilian market.

This time it will count on the help of Brazil Fast Food Corporation (BFFC), a company with the decades of experience in Brazil, which manages the Bob's fast-food chain.

The first time around, KFC was owned by Pepsi. Today, the company belongs to Yum! Brands, a multinational that also owns Taco Bell and Pizza Hut.

Negotiations between BFFC and Yum lasted five months. KFC will be investing about US$ 2 million in new stores and BFFC will be free to open KFC franchises in all of Brazil's 26 states.

BFFC is the owner and operator of the 534-outlets Bobs chain, the second largest hamburger fast-food chain in Brazil after McDonald's. Yum! Restaurants International, a subsidiary of Yum! Brands, Inc. has over 34,000 restaurants around the world.

Under terms of the mutual agreement, Brazil Fast Food – through its recently formed holding company, 22N Participações Ltda. – will assume operational control of KFC's four company-owned and operated restaurants in Rio de Janeiro as a Yum! franchisee.

A new subsidiary, wholly owned by 22-N Participações Ltda., has been set up for this special purpose. In addition, Brazil Fast Food, through its holding company, will be responsible for developing and expanding the KFC chain throughout Brazil by opening new restaurants -company-owned and franchised – and managing the chain's Brazilian operations.

Wagner Rodrigues, Executive Officer of Yum! Restaurants International in Brazil, commented on the agreement. "With Brazil Fast Food's extensive knowledge of the Brazilian fast food market, we believe that it is the perfect company to entrust with the continued growth, development and consolidation of the KFC brand in Brazil."

Ricardo Figueiredo Bomeny, Chief Executive Officer of Brazil Fast Food Corp., also commented, "KFC is a powerful brand with a significant presence throughout the world, and we are honored to have been chosen by Yum! Brands to help them achieve their long-term expansion goals in Brazil's fast food market.

"We consider this an excellent opportunity to leverage our expertise in a way that complements our core business and provides us with an additional revenue stream.

"For 2007, we estimate that the revenue generated as a result of this mutually beneficial agreement will boost our Company's restaurant sales by approximately 10%. With our high level of commitment to and enthusiasm for this new venture, we believe that, over the long term, we will be able to generate progressively greater revenue as a result of this agreement."

Yum! Brands Inc., based in Louisville, Kentucky, is the world's largest restaurant company in terms of system restaurants with over 34,000 restaurants, which includes over 2,000 licensed restaurants, in more than 100 countries and territories.

Four of the company's restaurant brands – KFC, Pizza Hut, Taco Bell and Long John Silver's – are the global leaders of the chicken, pizza, Mexican-style food and quick-service seafood categories, respectively.

Yum! Brands is the worldwide leader in multibranding, which offers consumers more choice and convenience at one restaurant location from a combination of KFC, Taco Bell, Pizza Hut, A&W or Long John Silver's brands.

The company and its franchisees today operate over 3,400 multibrand restaurants. Outside of the U.S. in 2005, the Yum! Brands' system opened about three new restaurants each day of the year, making it one of the fastest growing retailers in the world.

Pizza Hut, one of Yum! Brands' flagship restaurant brands, has operated in Brazil for more than 15 years.

KFC Corp., a subsidiary of Yum! Brands, Inc., is the world's most popular chicken restaurant chain. There are more than 13,000 KFC outlets in more than 80 countries and territories around the world, serving some eight million customers each day. The first KFC restaurants were opened in Brazil in 2003.

Brazil Fast Food Corp. owns and operates, both directly and through franchisees, the second largest chain of hamburger fast-food restaurants in Brazil, through its wholly owned subsidiaries, 22N Participações Ltda. and Venbo Comércio de Alimentos Ltda.

Brazil Fast Food Corp. conducts business in Brazil under the trade name "Bob's." As of Mar. 28, 2007, the Company had 534 points of sale, which includes traditional restaurants, kiosks and re-locatable trailers.

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  • Show Comments (8)

  • Joe

    KFC is owned by Yum! Brands !!!!
    There is so much better food to eat in Brasil.

    I hardly eat fast food in the U.S. (well, some, from time to time. . . .), but I would never consider doing so in Brasil. Brasil food tastes amazing!

  • Hans Kuller

    Great! I’m waiting for KFC service in my city! More service options, more jobs, more business opportunities, better for brazillian economy and better for Brazil.

  • Hades Himself

    Today Brazil is the world’s largest chicken exporter. You can eat better and less expensive chicken elsewere!

  • Ric

    And for you, snake, donÀ‚´t base your conclusions on what you see in pictures. Having lived in Brazil for many years, I can tell you that while most Brazilian women are very nice people, Brazil has its fair share of dog-ugly babes, including some of the most interestingly and grossly misshapen specimens imaginable.

  • Ric

    Maybe it has something to do with the fact that presented with a piece of fried chicken, Brazilians (those who have the money to eat out, anyway) will always eat it with knife and fork, never just pick it up and eat it.

    Think about eating fried chicken with little plastic disposable tableware. Would you?

  • Snake

    Dont allow American fast food in Brazil
    Honestly unless you want your women to look like American women aka fat cows, do not allow fast food in your country.

    The of Brazil are drop dead gorgeous, and we need more Brazilian women to keep there stomachs flat and bodies tight.

    American women are the slime of the planet. They literally look like sewage and are ugly inside and out.

  • Paul Oliphant

    I really do hope that KFC does not become seccessfull in Brazil. The more fast food joints that Brasil opens its doors to, the more Brazil will lose the magic that it has now. These places may only be food outlets to some, but with time brazils identity will disapear just like other coutries all over the world. Also the average Brazilian will simply not be able to afford KFC. They just do not make enough money. Mark my works KFC will be a failure in Brazil, and I really do belive this will be a good thing for Brazil

  • ch.c.

    KFC is owned by Yum! Brands !!!!
    Yum! was also owned by Pepsi.
    In 1997 Pepsi distributed Yum! to its shareholders !

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