YUM in Nigeria?

Discussion in 'Money, Self-Development' started by panasharp, Dec 8, 2010.

  1. panasharp

    panasharp Master Group

    Yum seeks to double Africa revenues in 4 years: report

    BANGALORE (Reuters) - Yum Brands (YUM.N) plans to more than double its revenue from Africa to $2 billion in the next four years and expects to double its number of KFC outlets on the continent to 1,200, the Wall Street Journal said.

    "Africa was not even on our radar screen 10 years ago, but now we see it exploding with opportunity," David Novak, Yum's chief executive, told the Journal.

    Yum, whose brands also include Pizza Hut, Taco Bell and Long John Silver's, is branching out into Nigeria, Namibia, Mozambique, Ghana, Zambia and other African countries, the Journal said.

    Yum Brands could not immediately be reached for comment.

    (Reporting by Sakthi Prasad in Bangalore )
  2. Rosie

    Rosie Miss One-Liner

    That's what we need. More fast food places. Whatever happened to "mama put?"
  3. RealDeal

    RealDeal Master Group

    WOW! We're slowly moving away from our wholesome fresh food from d market to these chemically process food, with road kill, and fake meat. I saw this happening at palms shopping ctr in VI, most ppl are just happy with their colorfully package food in a box, it is a status thing. Ready for more sickness, more disease, and misery, Yes, YUM will produce more job, but at what cost, so it is pay me now or later. While most American are rejecting YUM foods and eating organic, africans are embrasing them, we've bcome dumping ground for unwanted.
  4. chiomze

    chiomze Dr. Know Know Aproko-itis

    Why should onyinbo be the only one dying? Besides Africans don't appreciate what they have they want to be onyinbo.
  5. Akinola

    Akinola Master Group

    No more "progressive"?
  6. thewriter

    thewriter Master Group

    Naturally YUM and co will not be on stand by when people start dropping dead from obesity, diabetes, high BP and other junk food related ailments.

    At this rate I might start considering a diploma in nutrition in the works so that when our status-conscious junk-food-chomping citizens start to feel bewildered I'll be there with my fancy 'health center' to charge them exorbitant amounts of money in 'consultation' on alternative therapies and how to 'heal' themselves.
  7. Buda Atum

    Buda Atum Master Group

    Yum do Kentucky. Farmers will have an another outlet for their product, people will find job, more tax will be paid, local companies will learn new ways of trading and other foreign companies seeing Yum's success will come into the African market, etc.

    I say, go Yum
    panasharp likes this.
  8. panasharp

    panasharp Master Group

    Good point Buda.
    KFC in Nigeria would not probably resemble KFC in US. They will have to use a lot of local ingredient and also modify their menu to fit the culture they operate.

    I remember when I went to KFC in Tokyo and I ordered a large cup of coke/pepsi, I was shocked when I saw the size of the cup....it was comparable back then to a small cup at a KFC in US.
    Buda Atum likes this.
  9. panasharp

    panasharp Master Group

  10. Buda Atum

    Buda Atum Master Group

    You are hopefully not asking me if I think these people are sincere in their requests that people come and invest in Nigeria.

    As to whether their is money to be made, I have just become the owner of a Black having for just about 20 years been an ordinary phone user in the 10 that I bothered. Imagine the amount of money that is there to be made from these newer technologies in what could only be called virgin Nigeria? Damn man, I get to post on here from ordinary berries!

    If, or rather, when the fear of losing one's investment recedes, and it will in time, Nigeria will seem like America when the founding fathers arrived there. I hear if one invested 1 penny in those days one would be a billionaire or something very close, today.

    And if you wondering if it would happen, Nigeria improve, that is. I assure you, it will. America used to be a lot worse than we are today, or wasn't there a time I could have just shot Akinola and sang, "But I didn't shoot no deputy"?
  11. thewriter

    thewriter Master Group

    I doubt men like Dangote genuinely welcome competition despite all their rhetoric about investment. I get so annoyed when I read people bleating on about how Africa (specifically) Nigeria needs investment. That's like the understatement of the century because everyone knows that. The country is bursting at the seams with potentials. The reason I'm annoyed is because I have come across countless Nigerians with viable business ideas with 100% guaranteed chances of success whose only roadblock are their greedy country men. These men/women either have their ideas stolen by the very banks they've applied for loans to, or they find that the conditions laid down are impossible if not downright thieving because they stop short of taking over the entire enterprise while relegating the owner, the originator of the idea to the background.

    But the minute these business men/women partner with a oyinbo or an 'oyinbo like' foreigner, i.e., Libyan, Egyptian, and more increasingly Chinese; suddenly the loan that wasn't forthcoming will be approved. And those greedy suit-wearing, idea-stealing, glorified-money-lenders welcome them with open arms.

    From my personal experience there is money IN Nigeria and more importantly there are ideas IN Nigeria. And I'm not talking guguru and ekpa ideas, but the kinds that generate employment for thousands and is economically viable and environmentally sustainable. The problem in Nigeria is you don't get ahead by the quality of your idea but by who you know. When I tried to start my business in Nigeria, Nigerians were more of an hindrance than the lack of electricity, water and good roads ever was! Why we keep bleating about foreign investment just irritates me to no end because I don't see that inherently changing our attitudes. Maybe there's another side to foreign investment that I'm missing.
    Nozza likes this.
  12. panasharp

    panasharp Master Group

    I don't follow your poem? Do translate.
  13. panasharp

    panasharp Master Group

    Last week, FBN relaxed the restrictions on importation of vehicles to something like 15 years. Now imagine if I had taken a loan from a bank few years ago to finance construction of an automobile plant. My analysis was based on FBN at that point that had restriction on automobile importation. My factory is almost completed and scheduled to start production next. However, I woke up last week to the sudden change in government policy, how do you think that would impact my market viability now that I have to account for additional competition. What happens to the bank loan I secured with the factory? Say I decided to stop construction and default on my loan.

    Unstable government policies inconsistencies makes doing business in Nigeria very risky. Banks are very averse to taking risk in such an environment especially when it comes to funding longterm projects. If a state government can refuse to satisfy loan obligations and banks have no recourse, how much more private individuals.

    Dangote and the likes source most of their funds overseas to finance their projects. Foreign investment can be good or bad, it is all about how FBN manages it.
  14. obiora

    obiora Oforkansi

    Shouldn't Pepsico solidify their stay in Nigeria first before launching YUM! brand foods?. Besides, KFC is already in Nigeria. Taco Bell will do well but Long John diamond will definitely struggle in Nigeria.....with their expensive dish filled with fish crumbs for $8.99...Those punks are thieves.
  15. panasharp

    panasharp Master Group

    YUM! is a separate company from Pepsico.
  16. Buda Atum

    Buda Atum Master Group

    :roll:roll They say that at about minutes I take, wonder if I am singing song or something.

    Here goes, paragraph by paragraph:

    First line, I think that one was straight forward.

    Second: I have just moved to one of those new phones that let you do email and browse after 20 years of using an ordinary phone. Nigeria would get to the stage we are down here where such techie is freely available and more money would be made by those who invested in it now.

    Third: I think that one's straight forward too, still, Nigeria is in the state America was in when cows were boys :music-smi It will improve.

    Fourth: I want to shoot Akinola!

    There :music-smi
  17. panasharp

    panasharp Master Group

    Much better.

    A friend that goes to Nigeria regularly was able to use his Blackberry earlier last year. I also know of friends that are able to use those features their blackberry and iPhone. I think the bandwidth is getting their in some major cities. From an observer that is far removed what is going in, I venture to say there is not much money to be made base on how the industry/market in Nigeria is currently structured. What was made in the last 10years would require significantly more capital to get comparable return in future. One, there are dominant players that are well funded, strong customer affinity, and would be tough to beat.

    Except for the major players, I would not bet my lunch money on any telecom firm in Nigeria.

    Nigeria is funny....someday I am bullish, next day I see zero prospect for the country. I give extra kudos to my country men that are genuinely surviving:thumbs:. Easy for us who are thousands of miles ago to be bullish compare to those going through the daily grind.
  18. obiora

    obiora Oforkansi

    Yeah but YUM! is still a Pepsico spin off. They still share logistics, resources(including human), et al. I guess they may be trying to build a concentrate industry in Nigeria since Coca Cola moved theirs to Ghana. I think YUM! and Pepsico operate as one company in some countries in the middle East.
  19. Buda Atum

    Buda Atum Master Group

    The quoted part shows your feeling about this whole thing, and is much appreciated. While you would not invest more than your lunch money one day, you would borrow and steal the next to invest (my interpretation).

    Now I never knew Blackberrys and iPhones were already working in Nigeria, so we have moved way further than I thought we had. Imagine, in another year or so, the developments you reckoned would take ten years would be there already too.

    Just remember, it is the little acorns that do someday become major players. Besides, when acorns do well, they become massive oak trees.
  20. panasharp

    panasharp Master Group

    In some respect, the development in mobile technology is close if not on pace with what is obtained in US and Europe. The main issue is bandwidth. But my point with regards the 10yrs is that I think the market is saturated at this point. I think going forward margin will be tighter compared to previous years especially for new investors. The dominant players that would continue to enjoy handsome ROI are closely held private entity. With no incentive to approach the public market. By the time they do approach the market, the margin would be razor thin. Unless of course they are acquired by outside companies. But then, newly emerging sub-sectors in the telecom. would probably offer more opportunities for retail investors.

    Globalcom and MTN ain't going public anytime soon. The rest are just wasting bidding time until they go out of business or get acquired for peanuts.

    I know someone will dig this up 5yrs from now to let me know I was 100% wrong:roll

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