A FAST food chain run by the owners of Asda is to be sold to KFC in a move affecting more than 200 locations.
The fast food chain said that it would take over 218 sites in the UK and Ireland, which employ around 7,800 people.
They had previously been owned by EG Group, a Blackburn-based company owned by the same brothers who bought Asda in early 2021.
Sabir Sami, KFC division chief executive, said: “We’re pleased to add these restaurants to our equity portfolio, in a market where we are well placed to drive strong growth while also making further digital and strategic progress.”
EG Group said that the sale, expected to complete by next summer, will help it pay off some of its loans.
In a franchise model, a business sells a licence to a third-party (franchisee) to trade under the brand name.
Franchises are separate legal entities, which means their owners have freedom to do things like set pay and conditions for their employees.
EG co-founders Zuber Issa and Mohsin Issa said: “We are proud to have been a strategic partner of KFC in the UK and Ireland, playing an important role in helping the brand expand its footprint.
“Now is the right time to hand the baton to the KFC leadership team to continue to grow the brand in the UK.
“This is the latest transaction in our significant deleveraging this year – to put in place a sustainable capital structure.”
Meanwhile, M&S is set to opened almost a dozen new shops in its biggest store opening plan yet.
Plus, Aldi has revealed 22 areas and towns where it plans to open new stores.
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