QSR plans 4 KFC stores in Phnom Penh annually
Tuesday April 29, 2008By YVONNE TAN
The Star Online (Malaysia)PHNOM PENH: QSR Brands Bhd hopes to set up four Kentucky Fried Chicken (KFC) outlets a year in Phnom Penh.
This is given the robust growth of the city's tourism industry, said chairman Tan Sri Muhammad Ali Hashim.
He said four outlets would be set up by year-end with a total investment of US$1mil.
“The immediate plan is to open three more here this year,” he said after the launch of Cambodia’s first KFC restaurant here yesterday.
Ali said the company would subsequently expand to other populous cities such as Siem Reap and Sihanoukville.
“Tourism here is growing rapidly. We hope to establish outlets to cater to the increasing number of foreign visitors,” he said.
He added that QSR obtained the franchise to operate KFC restaurants in Cambodia last year through its 46.79% associate company KFC Holdings (M) Bhd.
QSR is the operator of 489 KFC outlets in Malaysia, Singapore, Brunei and Cambodia. It is also the franchisee for Pizza Hut.
The new outlet is operated by Kampuchea Food Corp Ltd, a joint-venture company set up by QSR; Cambodian investment and development company The Royal Group of Co Ltd of Cambodia; and Hong Kong-incorporated strategic investment holding firm Rightlink Corp Ltd.
QSR has a 55% stake in the joint-venture company while The Royal Group and Rightlink each has 35% and 10% interest.
On when the new outlet would break even, Ali said: “Hopefully, in a year but this is a long-term investment.'' Currently, overseas operations contribute 30% to QRS’ sales.
“We hope it will be much higher after this,” Ali said, adding that he expected Malaysian sales to also grow at double digit this year.
Despite rising prices of raw materials, Ali is confident of the group’s financial performance, going forward. “This year will be better than last year,” he added.
On a possible price increases in its products, he said: “Only if it is absolutely necessary but we will try to maintain prices for now.”
Meanwhile, the Cambodian government hopes Malaysia will continue to grow its investments in the country.
"China is currently Cambodia's biggest investor while Malaysia ranks ninth or 10th," Cambodia's Senior Minister of Commerce Dr Cham Prasidh said.