KENTUCKY FRIED CHICKEN

Background of KFC
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Kentucky Fried Chicken is one of the largest fast

food Franchise concepts of today; it is present in
various countries around the world and it has
been able to establish a renowned International
reputation in multiple continents. Starting in the
United States in the 1939, it has grown to become
a true multi-domestic company.

KFC has focused on foreign markets since the

1960s and has found a new challenge today in
conquering Asia.
 Vision & Mission of KFC
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Vision
To be leading integrated food services
group in ASEAN region delivering
consistent quality products and excellent
customer focused

Mission
To maximize profitability, improve
shareholder value and deliver sustainable
growth year after year.
 Business Operation of KFC
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 1952 : Harland Sanders begins actively

franchising his chicken business. Market value
only $105.
 1960: 400 franchise units in the U.S. and
Canada
 1964: Kentucky Fried Chicken has more than
600 franchised outlets in the United States,
Canada and the first overseas outlet, in
England. Market Value was $2 million.
 1971: More than 3,500 franchised and
company-owned restaurants are in worldwide
operation when Heublein Inc. acquires KFC
 Business Operation of KFC
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 1979: approximately 6,000 KFC restaurants

doing their operations worldwide.
 1982: Kentucky Fried Chicken becomes a
subsidiary of R.J. Reynolds Industries, Inc.
 1986: PepsiCo, Inc. acquires KFC from R.J.
Reynolds Industries, Inc. Market value was
$840 million.
 1997: PepsiCo, Inc. announces the spin-off of
its quick service restaurants – KFC, Taco Bell
and Pizza Hut – into Tricon Global Restaurants,
Inc.
 2002: Tricon Global Restaurants, Inc. changes
 Business Operation of KFC
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 2006: Served more than 1 billion people in 80

territories around the world.

 And now there are over 14,000 KFC outlets in

118 territories around the world. And every day,
nearly eight million customers are served
around the world. There current market value is
$9.7 billion.
 Globalization of KFC
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 KFC in China: In 1987 KFC started their

operation in China & within seventeen years
they celebrated 1000th restaurant milestone in
Beijing on January 16, 2004. Now there have
4,563 unit of KFC restaurant.

 KFC in Philippines: KFC started its operation

in the Philippines in 1967; it was managed by
different franchisees. On June 1994, Manuel U.
Agustines obtained the sole franchise over the
sale and distribution of KFC products in the
Philippines
 Globalization of KFC
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 KFC in India: 52 KFC outlets currently operating

in the whole of India (under other local
franchisees). Sandeep Kohli (managing director
of Indian subcontinent of Yum!) said “We plan to
expand to wherever our customers are and there
is no limit to our expansion”.
 KFC in UK: With over 750 restaurants in the UK
and an annual growth rate of 15% KFC continues
to be the fastest growing restaurant brand in the
UK. During the last 5 years we have opened over
200 new restaurants and want to increase this
level of opening even further over the next 5
 Globalization of KFC
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 KFC in Bangladesh: KFC started its journey in

Bangladesh on the 6th of September, 2006.
Transcom Foods Limited, as the sole franchisee
of KFC. In our country there have 20 outlets in 3
cities across all over the country.
 SWOT analysis of KFC
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Strength: Weakness:
 KFC’s secret recipe  No access to home

service
 Recognition and

Reputation  Lack of branch

 Traditional employee  High production cost

loyalty than competitors

 Strong and experienced  Shortage of new product

management development
 High quality raw materials

 Pure & Hygienic product

 SWOT analysis of KFC
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Opportunities: Threats:
 Increasing demand  Changing preferences of

consumers
 Fondness of youth
 Inflation in local market
 Daily needed product
 Instability of the price of
 Large market is open to
raw materials
capture
 Sharp rise in the

production cost
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