Did somebody say KFC? Collins to open 130 stores in Netherlands
Collins Food Group has won the right to be KFC’s corporate franchisee in the Netherlands.
Collins Foods Group posted surging revenue for the first half (photo: KFC)
The Brisbane based company said it was a “true milestone” in its European strategy.
Under a deal it struck with Yum! Brands European subsidiary, it will manage, market, support and operate the KFC business in the Netherlands.
It will also open 130 KFC restaurants in the country over the next 10 years. They will be a mix of company-owned and franchisees.
Collins already has 35 KFC restaurants in the Netherlands, 17 in Germany and 253 in Australia.
Collins said the deal included an innovative franchising model in which it would receive a fee from KFC towards the costs of “running the market”.
It can also earn other incentives for development and performance.
However, it said it could not precisely estimate the materiality of the deal because of the variable nature of the agreement.
Managing director Drew O’Malley said the deal would allow Collins to leverage its scale, experience and operational capabilities in Europe.
“We believe there is substantial opportunity for restaurant growth in the Netherlands given KFC’s low penetration rate relative to developed markets and other quick service restaurant brands,” he said.
“Our current management team for Europe has an excellent track record in the quick service restaurant sector and with KFC and this is a natural extension for them and our business.
Collins shares were up 5 per cent this morning.
