Kentucky Fried Chicken Case

Kentucky Fried Chicken (KFC) is one of the nation's most successful fast food organizations. It has operations throughout the world, and has grown significantly both in the number of franchisees and company-owned stores since its inception. KFC currently faces a wide range of challenges and opportunities which can determine how successfully the company will enter the next century. This research examines the current situation at KFC and steps that might be taken to ensure the continued growth and profitability of the company.

Kentucky Fried Chicken (KFC) is the most successful chicken fast food operator in the United States, and it has made significant inroads in the international market. Begun by Harland Sanders when franchising was just beginning in the United States, KFC combines corporate-owned stores with franchise outlets and offers a variety of fried chicken products, as well as chicken sandwiches. The company recently began experimenting with grilled chicken in response to demand for healthier food from consumers.

KFC has had several owners since Sanders, including Heublein (a manufacturer of beverages), and is currently owned by PepsiCo, which also owns the Taco Bell fast food operation. Where Heublein recognized that it had little experience in fast food and permitted senior KFC managers to remain, PepsiCo has installed its own managers in senior positions. The match is a synergetic one, with KFC providing a strong outlet for Pepsi

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d the franchisees have gotten used to the new arrangements. Nonetheless, PepsiCo should be careful to maintain close relationships with franchisees as they are the most critical part of the company's operations. The company's major strength � its strong identification with fried chicken � is also a weakness. Where consumers at other fast food outlets are able to purchase a number of products, including hamburgers, chicken sandwiches and sometimes baked potatoes, consumers at KFC are limited to the core choice of chicken. This limitation, while allowing the company to promote and maintain a high standard of quality in relation to the product, puts the company at a competitive disadvantage with consumers who may need to satisfy several different tastes in a family, or who may be looking for a change of pace themselves. The method of preparation is also a drawback in an increasingly health conscious American market. Opportunities Among the opportunities that KFC faces is the opportunity to expand its international operations. The domestic market is largely saturated with fast food operations, but the international market is just beginning to provide significant opportunity to American fast food. The company already operates

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