Emerging markets fuel the fast-food growth for Yum! Brands

An excellent feature article in the Independent this week provides a rich source of information to help explain the international business strategy of a US-based fast food multinational.

You may not have heard of Yum! But you will almost certainly have come across its key fast food brands, including KFC, Taco Bell and Pizza Hut.

The article describes how a rapid and significant expansion into emerging markets such as China, Russia and India has enabled Yum! to overtake McDonalds to become the world’s largest restaurant chain (as measured by number of outlets).

Lots of great business studies material in the article, including:

- Yum! invested in China earlier than competitors (first-mover advantage?)

- The rise of the middle-class consumer in emerging markets is driving demand for the products and services of global brands

- Product - traditional KFC & Pizza Hut menus have been adapted to suit local tastes

- Yum! increasingly looking to franchising for profitable expansion rather than operating owned-outlets