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 products, and with the financial strength of PepsiCo helping to drive the expansion that is key to KFC's success.
Currently, KFC has operations in nearly as many countries as McDonald's, and the company was among the first American fast food operations to expand its operations overseas. Having helped pioneer the franchise relationships in many different countries, KFC is now undergoing some strain in a few of these areas. However, the company is well experienced in the operation o...