–KH News Desk (cbedit@imaws.org)
KFC South Korea will be acquired by Singapore-based Orchestra Private Equity (PE) from KG Group in a deal of between $48.5m and $56.6m.
The Korean Herald reports that the private equity group will buy all of KFC South Korea. According to the news agency, the KG Group first put the restaurant chain up for sale more than a year ago. The fast food chain was purchased by the Seoul-based chemical-to-steel business KG Group in 2017. According to reports, Orchestra PE has signed a separate agreement with Yum! Brands, the parent company of KFC, changed the operating model from direct management to a franchise structure.
The goal of this arrangement with the parent corporation is to provide the fast-food restaurant brand better control. A local source claims that the restaurant chain has had difficulty growing its presence in the nation because localization efforts failed and choices were only taken after contacting the American headquarters.
Inside Retail reports that there are already 190 KFC locations in South Korea. According to a local news source, KFC franchisees in Russia urged the authorities last week to halt the sale of the Yum! Brands restaurant company to a local operator.
Franchise owners from all around the nation asked the government to stop the sale because they think it will hurt the nation’s restaurant industry. All such agreements must be approved by a commission from the Russian Government, in accordance with Russian legislation.
According to a local news source, KFC franchisees in Russia urged the authorities last week to halt the sale of the Yum! Brands restaurant company to a local operator. Franchise owners from all around the nation asked the government to stop the sale because they think it will hurt the nation’s restaurant industry. All such agreements must be approved by a commission from the Russian Government, in accordance with Russian legislation.
