⚡ Get All Content for 20% Off ⚡

Yum Invests $185 Million in Modernizing KFC Franchises The parent company is taking over KFC's domestic marketing as franchisees remodel back of house.

By Kate Taylor

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Reuters | Bazuki Muhammad

KFC is ready to get modern.

Today, in its first-quarter earnings call, parent company Yum Brands announced it plans to invest $185 million towards "contemporizing" KFC over the next three years. The investment will fund new back of house equipment, incentives to accelerate remodeling and advertising.

As part of the deal, KFC franchisees will grant Yum Brands marketing control, a move that Yum Brands CFO Pat Grismer said "will empower our KFC U.S. leadership team to sustain a turnaround of this business." KFC franchisees reached the agreement with Yum on February 27.

Related: How El Pollo Loco Churns Out New Menu Items Crazy Fast

Yum Brands plans to invest $100 million in KFC franchisees this year, with the remaining costs split evenly between 2016 and 2017.

On Tuesday, Yum Brands reported KFC same-store sales increased 5 percent in the first quarter of 2015. The chicken chain is facing some stiff competition, however, as rival Chick-fil-A shows off its fast-casual-influenced tactics. With the cash infusion, Yum has the potential offer franchisees the financial boost to similarly class up operations at the chicken chain.

Yum Brands has also recently expanded Super Chix, a fledgling restaurant concept that could give it a leg up in the fast-casual chicken market.

Related: Watch Out Chick-fil-A: KFC's Chicken Sandwich Sister Chain Is Opening a Second Location

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Business News

Costco CFO Reveals Uncertain Fate of $1.50 Hot Dog and Soda Combo

CFO Richard Galanti reveals that the price will stay the same — but only "for a while."

Business News

The Most Unexpectedly Popular Side Hustle of the Decade Has Low Startup Costs and High Markups

A new report shows that vending machines are a popular investment — and the industry is set to grow up to $3 billion by 2031.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.

Leadership

Former Interrogator Shares 5 Behaviors Liars Exhibit and How to Handle Them

Five deceptive behaviors to look for and how to respond to those behaviors when you encounter them.