Kfc and Global Fast Food Industry - 11778 Words

Kentucky Fried Chicken and the Global Fast-Food Industry Jeffrey A. Krug University of Illinois at Urbana-Champaign Copyright  © 2001 by Jeffrey A. Krug. Used with permission. Kentucky Fried Chicken Corporation (KFC) was the worlds largest chicken restaurant chain and third largest fast-food chain in 2000. KFC had a 55 percent share of the U.S. chicken restaurant market in terms of sales and operated more than 10,800 restaurants in 85 countries. KFC was one of the first fast-food chains to go international in the late 1950s and was one of the worlds most recognizable brands. KFCs early international strategy was to grow its company and franchise restaurant base throughout the world. By early 2000, however, KFC had†¦show more content†¦Several months later, Heublein acquired KFC. Heublein was in the business of producing vodka, mixed cocktails, dry gin, cordials, beer, and other alcoholic beverages; however, it had little experience in the restaurant business. Conflicts quickly erupted between Colonel Sanders and Heublein management. In particul ar Colonel Sanders became increasingly distraught over quality-control issues and restaurant cleanliness. By 1977, new restaurant openings had slowed to only 20 a year, restaurants were being remodeled, and service quality had declined. To combat these problems, Heublein sent in a new management team to redirect KFC’s strategy. A â€Å"back-to-the-basics† strategy was implemented and new restaurant construction was halted until existing restaurants could be upgraded and operating problems eliminated. A program for remodeling existing restaurants was implemented, an emphasis was placed on cleanliness and service, marginal products were eliminated, and product consistency was reestablished. This strategy enabled KFC to gain better control of its operations and it was soon again aggressively building new restaurants. R. J. Reynolds Industries, Inc. In 1982, R. J. Reynolds Industries, Inc. (RJR), acquired Heublein and merged it into a wholly owned subsidiary. The acquisition of Heublein was part of RJR’s corporate strategy of diversifying into unrelated businesses such as energy, transportation, food,Show MoreRelatedKFC SWOT in China962 Words   |  4 Pageshigh growth areas (i.e. China) By 2006, KFC had 1,700 restaurants in China, more than tripling in five years. Profit and sales figures saw increases of over 25 percent for some quarters, while comparable figures domestically were 1 and 2 percent. KFC significantly outsold McDonalds in China, and by 2006, KFC was opening a new Chinese outlet every 22 hours. Yum!s boss David Novak told Business Week (October 30, 2006) that he hoped to eventually have as many KFC restaurants in China as in the UnitedRead MorePopeyes vs Kentucky Fried Chicken1731 Words   |  7 PagesOrleans heritage n flavorful authentic foods. Weakness: Popeyes is second to its sister company KFC. 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President Novak would like to keep how the company is doingRead MoreChina s Gross Domestic Product Essay1426 Words   |  6 Pagesmarket holds a lot of opportunity for the fast food industry. In particular, meat consumption is at an all time high. China is growing increasingly dependent on imports in order to keep up with the demand. This generates the perfect opportunity for fast food chains to enter the market and feed the growing masses. Despite China’s population making it a â€Å"dream market†, there were still obstacles to overcome. With monthly salary averaging 120 – 130 yuan, fast food prices were unaffordable to most localsRead MoreHow Kentucky Fried Chicken ( Kfc ) Uses Its Uniqueness As A Completive Advantage Against Its Rivals1610 Words   |  7 PagesThis paper will analyze how Kentucky Fried Chicken (KFC) uses its uniqueness as a completive advantage against its rivals. One of the major models of analyzing a firm’s competitive advantage is Michael Porter’s three generic strategies. Porter called the generic strategies Cost Leadership†,† Differentiation† and Focus. For each generic strategy, the firm should carry out a SWOT analysis of its strengths and weaknesses, and the opportunities and threats it would face. Also, integrate Porter’s fiveRead MoreCorporate Social Responsibility Of A Fast Food Industry1488 Words   |  6 PagesRestaurants) or the Fast Food Industry, has been burgeoning in the past few decades with the emergence of global brands like McDonald s, Domino s, Wendy s, KFC, Subway, etc. The success of these brands can be attributed to the continuous differentiation strategy they follow to ensure their brand stands out from the remaining. The popularity of these restaurants is due to the quick service of quality fast-food and minimal table service, everything of which is customer-centric. Food is advance-cookedRead MoreStructured and Unstructured Problems693 Words   |  3 PagesService speed In fast-food industries, the service speed is the time taken for a customer to get their food after placing an order. This is indirectly related to the overall retail sales of the fast-food restaurant. A fast-food restaurant which can serve the customers faster with good quality of food will definitely gain better reputation in fast-food industries. Both KFC and McDonald’s trains their workers regularly to avoid unneeded steps during food preparation, food ordering and food serving. McDonald’sRead MoreTaking a Look at McDonalds997 Words   |  4 PagesMCDONALD’S Strengths McDonald’s has a very strong brand name, which is widely recognized all around the world. Currently, it has the largest market share in the fast food industry due to its continued growth in the number of international branches over the years. One of the strengths of McDonalds is their extensive advertising and marketing strategy. In the early years, McDonalds introduced a number of attractive characters such as Ronald McDonald, Sundae, Hamburglar and so forth. Also, it offersRead MoreKfc Case Study1509 Words   |  7 PagesKFC- Finger-lickin good Kentucky Fried Chicken Kentucky Fried Chicken is one of the well-known fast food restaurants in the world. The industry was founded by Colonel Sanders. The corporation is based in Louisville, Kentucky and now regarded as the most famous chicken restaurant chain. It can be noted that each day, nearly eight million customers avails the products and foods offered by this fast food chain.   KFC has more than 11, 000 branches in more than 80 nations and territories all overRead MoreStrategic Analysis for McDonalds756 Words   |  3 PagesMc Donald’s are one of top brand and leading fast food service in fast food industry. 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