After opening up over 28000 franchisees across North America, Europe and Asia. Yum! Brands –owner of KFC, Taco Bell and Pizza Hut is expanding its franchisee spread across to the less developed countries in Africa namely Tanzania, Uganda and Zimbabwe.

Yum! is looking to tap the middle class across these regions. It believes that the likes of KFC and Pizza Hut around the world will generate similar and/or higher profits in these regions.

Taking into account factors such as growing economic and political stabilities across these countries, Yum believes that it will have the first-mover advantage into these regions as it’s major competitors such as McDonald’s and Burger King still haven’t set foot into these countries.

It seeks to enter these markets through diversification, whereby they plan on entering these new markets with new products that cater to the specific needs of these African countries.

However, a major factor that Yum may not have taken into account is the incomes and purchasing power parity of the people in these regions whereby millions of people are languishing in extreme poverty and simply cannot afford such restaurants. Will Yum be able to generate the projected earnings with these factors taken into account?

Sites:

http://edition.cnn.com/2013/10/04/business/fast-food-giants-africa/index.html

http://www.snaptohealth.org/wp-content/uploads/2011/12/Yum-Brands.jpg

http://gregorymancuso.com/wp-content/uploads/2011/11/Dominos-pizza-recipe-in-box-with-delivery-guy.jpg

http://yum.com/investors/restcounts.asp