Australian restaurant operator Collins Foods has agreed to purchase eight KFC restaurants in Germany from JJ Restaurant for approximately €31.1m ($36.08m), plus working capital.
The outlets are located in Bavaria, largely in and around Munich.
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The company expects the acquisition to deliver “greater scale” to the business, adding sites that represent close to a 50% uplift in its existing German portfolio. It is also expected to create further development prospects within Bavaria.
KFC’s parent company Yum! Brands has granted conditional approval for the transaction. The deal is expected to close between May and June 2026.
Additionally, the deal will lead to an expansion of Collins Foods’ German development agreements (DAs), which will lift the number of restaurants planned under these arrangements.
The revised DAs now envisage between 45 and 90 new KFC openings over the next four years across Baden-Württemberg, North Rhine-Westphalia and Bavaria.
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By GlobalDataThe move aligns with Collins Foods’ previously stated intention to build Germany as its second key growth market.
Collins Foods managing director and CEO Xavier Simonet said: “There is a significant growth opportunity for Collins Foods in the German market, and we are pleased to be executing on our expansion in a disciplined manner.
“The KFC brand has substantial potential in Germany with approximately a fifth of the store footprint of the largest competitor, McDonald’s.
“Despite lower restaurant density, KFC enjoys strong brand awareness and consumer appeal in Germany, supporting a compelling opportunity to expand our market presence.”
Alongside the German expansion, Collins Foods has also extended its corporate franchise agreement (CFA) for the Netherlands with Yum! Brands.
The Dutch CFA has been extended by three years to 31 December 2029.
Under the revised terms, Yum! Brands will assume responsibility for marketing activities in the Netherlands from 1 January 2027.
Collins Foods will concentrate on its core operations as a restaurant operator while continuing to handle operational support, IT, supply chain functions and sub-franchisee management.
Staff involved in marketing will transfer from Collins Foods to Yum! Brands by 1 January 2027.
Simonet added: “The updated Netherlands CFA brings our responsibilities into closer alignment with our other operating markets and will enable us to focus more sharply on improving sales and profitability across our network.”
