KFC franchisee weighs US$200M sale of Thai business

[webfact]

KFC franchisee weighs US$200M sale of Thai business

Yantoultra Ngui and Elffie Chew, Bloomberg News

 

Restaurants Development Co. is exploring the sale of its KFC franchise business in Thailand for about $200 million, according to people with knowledge of the matter.

 

The Bangkok-based company is working with at least one adviser on the potential sale, the people said, asking not to be named as the discussions are private. Restaurants Development operates about 200 KFC outlets that employ about 4,000 staff throughout the country, according to its official website.

 

The talks are still at an early stage and there is no guarantee they will result in a transaction, the people said.

 

- © Copyright BNN Bloomberg 2020-07-09

 

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[mtls2005]

Central (CRG) seems like a suitor?

 

I think they're the only other KFC franchisee here? Or maybe Yum! will buy them back?

[bwpage3]

10 minutes ago, mtls2005 said:

Central (CRG) seems like a suitor?

 

I think they're the only other KFC franchisee here? Or maybe Yum! will buy them back?

Yum just went Bankrupt.

[TallGuyJohninBKK]

15 minutes ago, stephenterry said:

No wonder the rate of obesity among younger Thais is growing year on year while these profit-seeking USA based companies exist. 

 

In this case, if I were to accept your basic complaint, it's actually Thais doing it to other Thais.

 

Quote

RD, franchisee of KFC Thailand, is a fast-growing Thai company with headquarters in Bangkok. RD employs more than 4,000 staff, operates over 150 KFC Restaurants throughout Thailand and is backed by a strong and committed consortium of Thai and Asian investors.

 

[ezzra]

24 minutes ago, mtls2005 said:

Central (CRG) seems like a suitor?

 

I think they're the only other KFC franchisee here? Or maybe Yum! will buy them back?

I think that CP will be more suited as they own vast networks of the chicken business already, either way, KFC is a good product in moderation of course...

[stephenterry]

3 minutes ago, TallGuyJohninBKK said:

 

In this case, if I were to accept your basic complaint, it's actually Thais doing it to other Thais.

 

 

Yeah, it's a franchise, but KFC is still a USA based company, as is Mcdonalds and Burger King who consider fast food to be a quintessentially American tradition..     

[steven100]

20 minutes ago, stephenterry said:

Junk food. No wonder the rate of obesity among younger Thais is growing

no one forced them into the shop to eat KFC  ....  did they    ?

 

That's the problem with the world today !   no one want's to be responsible for their own actions.

Blame .... blame .....   blame   ...   don't blame me for what I did   ... lol

[NanLaew]

Only $200 million? I'm interested...

[TallGuyJohninBKK]

33 minutes ago, stephenterry said:

Yeah, it's a franchise, but KFC is still a USA based company, as is Mcdonalds and Burger King who consider fast food to be a quintessentially American tradition..     

 

Run and operated in Thailand by Thai franchisees, with Thai management and Thai staff....

 

And in case you had any doubts about that, just try eating their food anytime... You'll know it's imitation U.S. food done by Thais for Thais in Thailand.

 

[BritManToo]

15 minutes ago, TallGuyJohninBKK said:

Run and operated in Thailand by Thai franchisees, with Thai management and Thai staff....

And in case you had any doubts about that, just try eating their food anytime... You'll know it's imitation U.S. food done by Thais for Thais in Thailand.

I like Thai KFC, nice and crunchy, always go there for my son's birthday meal.

Didn't like the KFC I had in Florida many years back, it was too sloppy.

[Grumpy John]

No matter the country,  it's still junk food with questionable ingredients.  But don't get bogged down with that argument,  there are plenty of Thai dishes that are made with junk ingredients.   Look at the MSG isle in Makro.   Not a full isle but one could safely say there is 2 ton of it in 1kg,  2kg and 5kg bags.  And I am sure I saw 25kg bags a few years back.  Salt they got it by the truck load.  Sugar and other sweeteners semi truck load.  Let's not forget the nasty little additives that go by numbers in the cooking section. 

[scorecard]

2 hours ago, bwpage3 said:

Yum just went Bankrupt.

I hope it's a 'no-name' but apple buyer, rather than a sale to a giant existing Thai company (example  CP) so that there is still competition in the market place. 

[scorecard]

1 hour ago, TallGuyJohninBKK said:

 

Run and operated in Thailand by Thai franchisees, with Thai management and Thai staff....

 

And in case you had any doubts about that, just try eating their food anytime... You'll know it's imitation U.S. food done by Thais for Thais in Thailand.

 

With most of the ultimate financial benefits in the profit & loss accounts of the ultimate US brand owner.

[thequietman]

2 hours ago, steven100 said:

no one forced them into the shop to eat KFC  ....  did they    ?

 

That's the problem with the world today !   no one want's to be responsible for their own actions.

Blame .... blame .....   blame   ...   don't blame me for what I did   ... lol

Well, I am certainly blaming you for this post!  ????

[Paiman]

In Dec 2018 RD still had big plans to widen their branch network with 30 to 35 new restaurants each year to 2022. 

 

Other KFC restaurants are run by franchisers CRG ( Central Restaurant Group ) and QSA, which is owned by ThaiBev.

 

[RichardColeman]

4 hours ago, stephenterry said:

Junk food. No wonder the rate of obesity among younger Thais is growing year on year

What a load of nonsense. Junk food does not make people obese, laziness, greed and lack of choosing a balanced diet makes people obese.

Edited July 9, 2020 by RichardColeman

[gillap]

Isn't KFC and YUM Pepsi owned?

[Airalee]

4 hours ago, bwpage3 said:

Yum just went Bankrupt.

Yum didn’t go bankrupt.  Their largest Pizza Hut franchisee in the US did.

 

https://www.ft.com/content/2f37e52a-9378-42fb-aab0-43b8bca56248

[Orton Rd]

Far too much of this western foreign muck in Thailand now, needs to be stamped out along with the burger chains, pizza's, crappy USA ice cream shops, donuts, cakes and chips. Fattening unhealthy rubbish.

[Pib]

Just now, Orton Rd said:

Far too much of this western foreign muck in Thailand now, needs to be stamped out along with the burger chains, pizza's, crappy USA ice cream shops, donuts, cakes and chips. Fattening unhealthy rubbish.

Yea...Thailand needs to stick with Thai fattening unhealthy rubbish.

[GarryP]

4 hours ago, steven100 said:

no one forced them into the shop to eat KFC  ....  did they    ?

 

That's the problem with the world today !   no one want's to be responsible for their own actions.

Blame .... blame .....   blame   ...   don't blame me for what I did   ... lol

What the hell happened? I actually agree with you. Does not happen often. 

[Pib]

From below Nov 2018 TheNation article KFC Thailand is a 100% franchise operation...which means HQ KFC does not own the KFC restaurants which makes it understandable why their asking price is only $200M.   The buyer is just basically buying the master KFC license for Thailand.

 

https://www.nationthailand.com/noname/30359329

Quote

FAST-FOOD giant KFC Thailand says 2018 has proven a great success for the company after transforming itself into a 100-per-cent franchisor, and thus freeing it to create innovative products and services.

 

[eisfeld]

10 minutes ago, Pib said:

From below Nov 2018 TheNation article KFC Thailand is a 100% franchise operation...which means HQ KFC does not own the KFC restaurants which makes it understandable why their asking price is only $200M.   The buyer is just basically buying the master KFC license for Thailand.

 

https://www.nationthailand.com/noname/30359329

 

KFC Thailand is not the one looking to sell. The OP talks about one of the big franchisees, not the franchisor.

 

Looking at their financials... can see only from 2016-2019 but in those recent years not a single one was profitable. More than 100M THB loss on avg. Non-current liabilities (e.g. bank loans) on the rise, equity in 2019 turned actually negative... not surprised they are looking for a sale. So to me it looks like they expanded very aggressively using loans but now they hit a limit. Can't as easily get loans and the financial burden is too heavy. Not sure what their financial position would look like if they stopped opening new stores. I feel like right now is not the best time to look for a buyer at good price as there are many cheap assets to pick up all over the place. So if they are looking to sell then more likely because they have not too much choice.

Edited July 9, 2020 by eisfeld

[transam]

5 hours ago, stephenterry said:

Junk food. No wonder the rate of obesity among younger Thais is growing year on year while these profit-seeking USA based companies exist.  When I first visited Thailand back over a decade ago, the majority of Thais were lean and healthy. Now look at them in any shopping mall - fat pigs are prevalent.  

Boring or what.....And calling the locals pigs is not nice, is it...Mr.Adonis..????

[A1Str8]

They say the discussions are private.

Then just keep it to themselves.

[topt]

1 hour ago, Airalee said:

Yum didn’t go bankrupt.  Their largest Pizza Hut franchisee in the US did.

 

https://www.ft.com/content/2f37e52a-9378-42fb-aab0-43b8bca56248

Thanks.

Not helpful when some people make statements without any links - almost trolling...........

[Cake Monster]

6 hours ago, ezzra said:

I think that CP will be more suited as they own vast networks of the chicken business already, either way, KFC is a good product in moderation of course...

Another opportunity for CP Group

From the Egg to the Toilet supply to their Customers.

[timendres]

$200M for 200 outlets? That is $1M for an outlet.

That seems awfully expensive.

[Burma Bill]

7 hours ago, webfact said:

Restaurants Development Co. is exploring the sale of its KFC franchise business in Thailand

Interesting, according to Wikipedia in regard to the CP Group:-

 

 In 1987, the company acquired the rights to the 7-Eleven convenience store chain and the KFC fast food restaurant chain. 

 

So is Restaurants Development Co. part of the CP Group???

[thailand49]

7 hours ago, TallGuyJohninBKK said:

 

Run and operated in Thailand by Thai franchisees, with Thai management and Thai staff....

 

And in case you had any doubts about that, just try eating their food anytime... You'll know it's imitation U.S. food done by Thais for Thais in Thailand.

 

Agree, you are chopping this guy up by pieces and he doesn't even know it!  You killing the guy stop don't answer him back again he most likely thinks the KFC uses the same secret spices too!????