KFC-Taco Bell Targets Small Town USA

Date: DEC 27th, 2006

Topic: Franchise News

Yum! Brands, Inc. wants to build a combination KFC-Taco Bell restaurant in some 500 small town across the United States including North Pole, Alaska. (Santa and his elves will be appreciative.) Scott Haner, VP of franchise development, announced the move on the Yum! Brands website. The Louisville Courier Journal added this insight into the advantages of building a system that can be sustained in small town America:

Wayne P. Jones, a University of Louisville professor who teaches classes in franchising, called Yum's campaign "a great strategy theoretically." Real estate, labor and advertising costs in rural areas are generally cheaper than in urban settings, he said, and since the new locations would be franchisee-owned, the investors assume much of the financial risk. Jones, a former KFC executive, said Yum's new multibrand stores have a better chance of competing against established chains such as McDonald's because they offer more than one style of food.

The strategy will likely prove a fit for the Canadian market as well but at this time there has been little public discussion on whether the program will be rolled out north of the border.