KUALA LUMPUR: QSR Brands Bhd has allocated about RM80 million for its capital expenditure this year, the bulk of which will be used to set up KFC and Pizza Hut outlets in the region.

"Our plan is to open at least 40 new KFC and 25 new Pizza Hut outlets every year to grow our sales going forward," QSR chairman Tan Sri Muhammad Ali Hashim told reporters after the AGMs of QSR Brands and KFC Holdings (Malaysia) Bhd (KFCH) here on Thursday, April 29.

Muhammad Ali, who is also the chairman of KFCH, said the cost of setting up a new outlet was about RM900,000. "Besides that we also plan to refurbish some 52 KFC and Pizza Hut outlets this year which will cost about RM300,000 per store."

QSR Brands is the franchisee for Pizza Hut in Malaysia and Singapore, with 258 restaurants in the two countries. Through its subsidiary, KFCH, QSR operates 562 KFC restaurants in Malaysia, Singapore and Brunei. It also owns the Ayamas brand which carries fresh chicken and processed chicken products.

On KFCH's new market in India, Muhammad Ali said the group proposed to open at least nine new outlets there, particularly in Mumbai and Pune, at a cost of RM1.1 million per outlet. It opened the first KFC restaurant there on Thursday.

On the group's performance, Muhammad Ali said the restaurants reported a marginal decline in earnings last year. "This year, with the economy expected to continue posting positive growth, we expect sales from our existing KFC restaurants to grow by 5%, and Pizza Hut outlets by at least 6%," he said.

Meanwhile, following the acquisition of Paramount International College (PIC) in January 2010 for RM6.5 million, Muhammad Ali said KFCH was now focused on turning the institution into a full-fledged hospitality university.

He said the group would need five years to meet certain requirements in upgrading the college to university status. "We are investing an additional RM2 million in upgrading the facilities at the college's current campus in Puchong," he said.

Currently, there are about 460 students pursuing diploma courses, including in business management and information technology.

Muhammad Ali said KFCH and QSR had also jointly set up a RM1 million annual education fund for its employees and the first batch of 13 staff had already taken advantage of this opportunity by enrolling for various courses at PIC.

"These employees will train in the disciplines of restaurant management, hospitality and culinary art, eventually becoming professionals in their field of expertise," he said.