KFC set to tap coffee market

KFC set to tap coffee market

KUALA LUMPUR (AFP): Fast-food chain KFC said Thursday it would spend 20 million ringgit (US$5.26 million) to open a chain of coffee shops in the region as part of moves to diversify its business.

Following a recent tie-up with U.S.-based Seattle's Best Coffee (SBC), KFC Holdings (M) Bhd. will open 36 coffee shops in Malaysia, four in Brunei and 15 in Singapore, said executive deputy chairman Abdullah Omar.

"We plan to open the first six outlets next year and six more the following year, with the others being opened in stages up till 2006," he told reporters.

Under the pact the local Kentucky Fried Chicken franchisee has the exclusive right to set up and operate 40 SBC coffee shops or kiosks in Malaysia and Brunei and 15 outlets in Singapore for an initial period of 20 years.

Abdullah said the company was diversifying its business base to prepare for greater competition under the ASEAN Free Trade Area (AFTA) due to come into force in 2003.