A FAST food chain run by the owners of Asda is to be sold to KFC in a move affecting more than 200 locations.
KFC is to buy existing KFC outlets that are owned by the EG Group – a franchisee and sister company of supermarket Asda.
The fast food chain said it would take over the EG Group’s 218 sites across the UK and Ireland, which employ around 7,800 people.
Around half are drive-through locations, said KFC, which is owned by Yum! Brands, the company behind Pizza Hut and Taco Bell.
The KFC branches had previously been owned by EG Group, a Blackburn-based company owned by the same brothers who bought Asda in early 2021.
Sabir Sami, KFC division chief executive, said: “We’re pleased to add these restaurants to our equity portfolio, in a market where we are well placed to drive strong growth while also making further digital and strategic progress.”
EG Group said that the sale, expected to complete by next summer, will help it pay off some of its loans.
EG also runs franchise sites for Starbucks, Greggs and Subway, among others.
In a franchise model, a business sells a licence to a third-party (franchisee) to trade under the brand name.
Franchises are separate legal entities, which means their owners have freedom to do things like set pay and conditions for their employees.
EG co-founders Zuber Issa and Mohsin Issa said: “We are proud to have been a strategic partner of KFC in the UK and Ireland, playing an important role in helping the brand expand its footprint.
“Now is the right time to hand the baton to the KFC leadership team to continue to grow the brand in the UK.
“This is the latest transaction in our significant deleveraging this year – to put in place a sustainable capital structure.”
Meanwhile, M&S is set to open almost a dozen new shops in its biggest store opening plan yet.
Plus, Aldi has revealed 22 areas and towns where it plans to open new stores.
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Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
