In my last article, we discovered that Simbisa Brands (Chicken Inn’s Owners) are investing heavily in Zimbabwe in a way that could help them dominate in the future.
Chicken Inn already has significant presence in Zimbabwe and that's not likely to change. The KFC cost structure per store is also laden with franchise fees so they would ideally focus on higher income or foot traffic areas to maximise on profit. I think they are better of staying "small" and focused may be a better strategy.
I think even if they remain small (less than 25 outlets) they can cause problems as they likely will target the higher end consumers which are probably the most profitable.
If it were up to me, I would ask someone with muscle like Delta to take up McDonald franchise and run it in Zimbabwe, just to hurt Innscor. I think you need to do a “Masese Wars” between Delta and Innscor’s Buffalo. I think it will be interesting.
Chicken Inn already has significant presence in Zimbabwe and that's not likely to change. The KFC cost structure per store is also laden with franchise fees so they would ideally focus on higher income or foot traffic areas to maximise on profit. I think they are better of staying "small" and focused may be a better strategy.
Thanks Mike. That's a good point.
I think even if they remain small (less than 25 outlets) they can cause problems as they likely will target the higher end consumers which are probably the most profitable.
Some crazy suggestion but somehow I find it very compelling.
If it were up to me, I would ask someone with muscle like Delta to take up McDonald franchise and run it in Zimbabwe, just to hurt Innscor. I think you need to do a “Masese Wars” between Delta and Innscor’s Buffalo. I think it will be interesting.