KFCH expects support for reorganisation plan, says MD


KFC Holdings (M) Bhd (KFCH), the nation’s number one fast-food group, expects the government of Singapore Investment Corp and other shareholders to support a reorganisation plan to be completed in December. 

“They are very positive on this because they look at it as something they’ve been waiting for, an improvement in corporate governance, profitability and focus of the business,” its group managing director Datuk Johari Abdul Ghani said during an interview. 

KFCH is reorganising its chain of fast-food restaurants in transactions worth RM701mil that allow it to own direct stakes in 568 outlets under its KFC, Pizza Hut and Ayamas franchises in Malaysia and Singapore.  

Reorganising its fast-food business should help boost profit margins and efficiency as it seeks to bolster earnings. 

Other major shareholders of KFC include C.I. Holdings Bhd, the Employees Provident Fund and insurer Great Eastern Life Assurance. 

Johari said after the launch of Pizza Hut's classic Italian crust pizza in Kuala Lumpur yesterday that KFCH expected to emerge stronger after the completion of its restructuring exercise by the end of this year. 

KFCH group executive chairman Izhar Sulaiman said the company was confident that its revenue from food business in both Malaysia and Singapore would continue to grow this year following its new marketing drive. 

“The business operations of Pizza Hut in Singapore have now started to make profits while losses for the Kentucky Fried Chicken operations there have been reduced considerably,” Izhar said.  

He attributed the turnaround in Singapore to cost-cutting measures and introduction of a wide selection of food. 

KFCH took over the business operations of Pizza Hut and Kentucky Fried Chicken (KFC) last year. 

Izhar noted that while the severe acute respiratory syndrome (SARS) had significantly reduced the number of dine-in customers at both Pizza Hut and KFC outlets in Singapore, delivery orders had increased. 

Izhar indicated that the Pizza Hut outlets in Malaysia had huge potential since the popularity of pizza was growing among the young generation. 

“We will expand on the variety of our food selection to attract customers in the Malaysian market,” he said. 

In Malaysia, KFCH is the franchise holder of KFC and Pizza Hut. – Agencies  

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