KFC set to tap coffee market

Sat, 18 Nov 2000, 00:00 WIB | Source: AFP

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.

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