In 2016, KFC (GB), undertook an extensive refranchising program as part the wider Yum! Brands’ global move towards a more “efficient and capital light” franchise structure.
Yum! Brands operates the KFC, Pizza Hut and Taco Bell brands globally. The refranchising initiative was part of a global move to increase franchise restaurant ownership from 77% to 98% by December 2018.
The transaction saw BDO M&A engaged to manage the sale of 163 company-owned KFC restaurants to 11 existing and new franchise partners. The transaction resulted in the transfer of over 5,000 team members and 113 leaseholds out of the KFC (GB) system.
As a ‘pure play’ franchisor, the transformed KFC (GB) will now benefit from enhanced cash generations and focus.
The UK transaction involved the sale of ‘geographic bundles of restaurants’ to franchise partners including Demipower, The Herbert Group, Gastronomy Restaurants, Splendid Hospitality and Soul Foods.
BDO provided a full cross-stream service including M&A, FDD, Corporate Tax and VAT; meeting key objectives whilst maintaining strong relationships with the franchise partners.
The M&A and FDD teams also led the sale of 20 company owned restaurants in the Netherlands to Collins Foods (ASX:CKF) - an Australian food service retail outlet operator.
"The UK transaction was the largest by value of all the markets in the Yum! global refranchising project.
The BDO Team did an outstanding job managing the overall sale process. The Team was always readily available and we always felt that this process was their main priority.
I would readily workw ith BDO again and wholeheartedly recommend them."
Patrick Bailey, KFC Global M&A
"We proactively chose BDO to be our M&A partners in our largest transaction KFC has completed in its history in the UK. A decision that would pass the ‘rehire’ test!
Not only are BDO the subject matter experts in their field- I personally appreciate their cultural fit; navigating the intricacies of a Franchisor/ Franchisee set-up- but more importantly, really understanding that we like to do things the right way -meaning ‘how’ we conduct business is as important as the ‘what’ we do.
BDO M&A are a team who embrace the power of their difference- and bring their personalities and thoughts to the table too- it was that point of difference that made it a very successful partnership from which great things have happened for them & us."
Paula MacKenzie, Managing Director, KFC UK
"The BDO team were seriously impressive through the entire project. They are hugely talented team and were a real fit culturally with us. It was a pleasure to partner with them. The team took full ownership and control of what was a complex and transformational project for KFC. The BDO team recognised how important our relationship with franchisees is, which made completing the transaction even more impressive."
Chris Drew, CFO, KFC UK