Its expansion comes amid growth in the UK fried chicken market, which is estimated to be worth £3.1b
KFC is to invest £1.49b in the UK and Ireland and create more than 7,000 new jobs over the next five years.
The fried chicken chain said it was aiming to become the “fastest growing restaurant brand for the next generation” with plans to open a further 500 restaurants by 2035.
This will see it plough nearly £500m into building new restaurants and drive-through sites in “key locations” including the north-west of England.
Part of this will be spent on upgrading more than 200 existing KFC restaurants – around 20% of its estate – with a new design and digital features.
Some £583m will be invested to create thousands of new jobs in its restaurants and supply chain, including a newly created guest experience lead position designed with improving customer experience in its restaurants.
KFC first opened in the UK in Preston in 1965. It now has over 1,000 restaurants in the UK and Ireland, employing more than 30,000 staff.
Its expansion comes amid a boom in the UK fried chicken market, which is estimated to be worth £3.1b.
The chain has faced a surge in competition from smaller high-street chicken shops as well as larger US brands. Popeyes has opened over 50 franchised UK sites since 2021 while the UK franchise of Wingstop was sold to a US investment firm for £400m in December.
Rob Swain, who took over as general manager at KFC UK & Ireland this year, said: “We’ve been serving customers in the UK for 60 years now, but we’ve never seen such strong demand for freshly prepared, fried chicken as we’re seeing today. As the market leader and a near-£2b revenue business, we’re incredibly well positioned to unlock this opportunity.”
Kate Nicholls, chief executive of UKHospitality, said: “Hospitality’s ability to create places where people want to live, work and invest is unrivalled. This significant announcement from KFC is proof of that and will help to drive socially productive growth, deliver economically and support employment across the UK."