In the 10-year period between 1990 and 2000, Restaurants of Jamaica (RoJ), local franchise holders for KFC, have re-invested some $300 million in the Jamaican economy.
RoJ has added five new restaurants and is undertaking constant "image enhancement" at other restaurants in KFC's present 18-restaurant chain arising from KFC's firm belief that if the organisation awaits the turn-around of the economy before it invests, it will be too late to reap the benefits of the recovery.
According to general manager Mark Myers: "We believe that even though the economy has been going through a difficult time, the opportunities are still strong for growth by good products that are offered at good prices. And because we are confident that the economy will eventually recover, we look forward to realising the type of returns on investment that encourages any entrepreneur to invest."
Mr. Myers admits that the pace of growth - in terms of creation of additional restaurants - has slowed somewhat since the major push by his parents in the 10 years up to 1990 when 13 KFC restaurants were in operation.
"Challenges in the local economy and some contractual delays" contributed to this slowing, but so too did the organisation's decision to "develop as debt-free as possible", he says.
"This might not be the most expeditious way of pursuing a development programme, but it has been the most comfortable for the KFC team, given our desire to avoid as much as possible the use of expensive funds that result from high interest rates and a fluctuating exchange rate," he explains.
Cautious approach
Despite this cautious approach, the company continued to contribute tangibly to the economy during those years - employing approximately 1,000 persons in its restaurants, while also reinvesting substantially in the upgrade of the existing plants and donating millions of dollars each year to sponsorship of various sports, entertainment and community development programmes.
In the past 18 months, the organisation's restaurant expansion programme has again accelerated significantly.
Guided by scientific data on potential traffic count, the estimated cost of setting up each restaurant, and the pay-back potential, the Myers family-run establishment reinvested $70-million in three Jamaican parishes between July 1999 and December 2000 alone. This resulted from the decision to triple the size of its May Pen restaurant. New services such as a drive-through and playground were facilitated by a relocation of the restaurant to new premises, as well as the "image-enhancement" of four other restaurants in the Springs, New Kingston, Cross Roads and Mandeville.
KFC also has a short-to-medium-term investment programme in place which sees the organisation set to open three new restaurants being built at a cost of approximately $134 million by the first quarter of 2001.
Arrangements to open a restaurant at the University of the West Indies to serve the approximately 10,000 students, faculty and staff at the Mona Campus are almost complete, and that facility is expected to come fully on stream before the end of January.
Construction under way
Construction is also already under way in St. Elizabeth, where the organisation will open its first restaurant in Santa Cruz this month; and the 21st restaurant in KFC's Jamaican chain should open in Greater Portmore towards the end of the second quarter of 2001.
In the medium term, the investment programme calls for a KFC restaurant in Harbour View, and the addition of another restaurant in Mandeville, Manchester, with lands already identified to facilitate this development.
Additionally, the company may soon be able to add some specialised services, such as drive-through only, at some "non-traditional" locations. Mr. Myers explains that "many of our locations are currently 'maxed-out' and could be expanded to service customers more adequately. However, it might not always be possible to expand some locations - such as the one in Manor Park - and we are therefore looking at some secondary locations that would allow us to offer the additional services needed in those areas."
Tricon Global Restaurants, international owner of KFC, has already indicated an interest in facilitating this bid by the Jamaican franchise to maximise its service offerings in the Corporate Area.
Further investment this time in east coast communities such as Port Antonio might also be possible if a Development Park becomes a reality in that section of the island. KFC would be willing to occupy space in such a Park, Mr. Myers says.
