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Yum Brands to spin-off China business
The company behind KFC, Taco Bell and Pizza Hut has plans to operate its China unit under a franchise agreement.
Yum Brands, the company behind KFC, Taco Bell and Pizza Hut, has plans to spin off its business in China into a separate publicly-traded company by the end of 2016.
Yum China, which brought in nearly $6.9 billion in revenue last year, will become a franchisee of Yum Brands and will operate under a franchise agreement. They will have exclusive rights to three category-leading brands: KFC, China’s leading quick-service restaurant, Pizza Hut, the leading casual dining brand and Taco Bell, which is not yet in China. Yum Brands believes the move will help the China unit grow from its current 6,900 restaurants to more than 20,000 in the future.
According to the company, the remaining Yum Brands business outside of China will concentrate on becoming more of a franchisor, with the goal of having at least 95% of its restaurants owned and operated by franchisees by the end of 2017.
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About the Author
Nick Powills
FollowNick Powills, CFE, founded No Limit Agency in 2008 and serves as Chief Brand Strategist for the Chicago-based firm. No Limit is a full-service communications agency that establishes and elevates brands by bridging Public Relations, Social Media, Marketing, Advertising, Digital, and a lot of creativity, to best strategize well-rounded and successful campaigns for 50+ global franchise brands. By presenting visionary ideas and building real relationships, No Limit is able to create effective media branding strategies to help companies grow. Nick currently leads a staff of writers, media strategists, designers, social media experts and digital producers in an office think-tank where brands are humanized for strong, compelling media stories. Prior to starting No Limit at the age of 27, Nick spent four years working at a franchise PR agency where he mastered the art of building rapport with media outlets and creating newsworthy pitches for earned media placements. He holds a Bachelor of Journalism from Drake University in Iowa.
