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Bloomberg
US fast-food giant Yum! Brands Inc. plans to refranchise its KFC restaurant business in Turkey as part of a global shift away from owning its own outlets.
KFC Turkey will increasingly grow through its franchisees, the Louisville, Kentucky-based company said in an e-mailed response to questions, without providing details.
Yum, which also owns the Pizza Hut and Taco Bell brands, said on Oct. 11 that it will increase its franchise restaurant ownership to at least 98 percent globally by the fiscal year ending 2018. That’s up from 77 percent in October. Handing more restaurants over to franchisees is also another way for the company to trim costs, as it plans to reduce capital spending to $100 million in fiscal year 2019 from about $500 million after spinning off its Chinese business earlier this year.
The company said in 2015 that it plans to add 400 KFC restaurants in Turkey over the next five years. That compares with 104 locations, according to the current figure on the website of its Turkish unit.