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Kfc – origin, history and its success

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KFC CASE STUDY

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Kfc – origin, history and its success

  1. 1. -AISHWARYA DAS -BBA 3rd SEMESTER
  2. 2.  KFC is based in Louisville, Kentucky, and is the world’s most popular chicken restaurant chain.  Founded by Colonel Harland Sanders in 1952.  More than 11,000 outlets.  85 countries and territories around the world.  8 million customers each day.  Yum! Brands is run by David Novak.  Chairman & CEO KFC Division is run by Cheryl Bachelor, President and Chief Concept Officer.
  3. 3.  1952, Col. Sanders started franchising his recipe door to door financed by his $105.00 SS Check.  1964, Col Sanders had more than 600 franchised outlets in the US and Canada.  1964, Sold his interest in his company for $2 million to a group of investors.  1966, KFC went public.  1969, Listed on the NYSE.  1971, KFC was acquired by Heublein Inc. for $285 million.  1982, Heublein & KFC Inc. was acquired by RJ Reynolds.  1986, RJ Reynolds & KFC, was acquired by PepsiCo, Inc. $840 million.
  4. 4.  1997, PepsiCo, Inc. spined-off of its qsr’s into independent Tricon Global Restaurants.  2002, Tricon changed it's corporation name to Yum! Brands, Inc.  NOW: Yum Brands, Inc. is the world's largest restaurant company in terms of system units with nearly 32,500 in more than 100 countries and territories. Yum! Brands, Inc., is a Fortune 300 company Yum! Brands, Inc. global system sales totaled more than $22 billion in the year 2001. Current Market Cap value on the NYSE is 7.2 Billion
  5. 5.  STRENGTHS – multi branding strategy, reputation, name and recognition, employee loyalty, brand expansion.  WEAKNESSES – conflicting corporate cultures, no defined target market, time taken to market new products.  OPPORTUNITIES – international appeal to American products, economies of scale n scope.  THREATS – consumer health food trend, saturated fast food industry.
  6. 6.  KFC is a public traded company with responsibilities to all the shareholders.  By becoming a more socially responsible company it tries to attract new type of investors holding the present stockholders.
  7. 7.  KFC provides complete security services such as user authentication, electronic signature, transaction security control , password policy etc.
  8. 8.  Aim for high quality food and committed to ensure food safety by stringent control to maintain our standards -  Cook their products well above the minimum temperature recommended by WHO.  Follow standard procedure to minimize risk of cross contamination between raw and ready-to- eat products.  Use of non-hydrogenated palm oil that contains insignificant amount of trans fat and it is 100% free.  Team of food technologists constantly experimenting with new flavors and creative concepts to provide more values, choices and healthy options for their customers.
  9. 9.  Conduct an annual supplier audit namely the STAR AUDIT which is a YUM proprietary program. The STAR AUDIT comprises two versions:-  The Food Safety & Quality Systems Audits.  Suppliers performances are constantly monitored through regular submission of quality reports Food technologists conduct quarterly QA evaluations on in-house suppliers KFC use quality raw materials from reputable suppliers such as NESTLE, UBF, McCain & Jomalina
  10. 10.  KFC established Hazard Analysis Critical Control Program(HACCP)  It is a management system for the assurance of food safety.  It includes identifying, evaluating and controlling hazards i.e. physical, biological & chemical to ensure food safety.
  11. 11.  KFC have a field service team personnel known as CHAMPS Recognition Specialist to conduct regular evaluations.  The evaluation covers the cleanliness and sanitation of the premises and equipment, personal hygiene, hospitality in service, accuracy in the serving order, good maintenance, product quality standards and speed of service.  KFC follows strict temperature control and shelf life to ensure the food served to their customers is safe and fresh.
  12. 12.  The main attributes for KFC restaurant excellence are CHAMPS -  C- Cleanliness  H- Hospitality  A- Accuracy  M-Maintenance  P –Product Quality  S – Speed of Service
  13. 13.  KFC has Mystery Customer Program known as CHAMPSCHECK which evaluates customers experience in their restaurants.  They have appointed a reputable surveillance company to check against the CHAMPS concept Every restaurant is subjected to a visit by a Mystery Customer and the dine- in/take away experience is evaluated and scored KFC sets a minimum standard of 90% as passing score for this evaluation
  14. 14.  KFC’S daily operations manual clearly highlights each step of the sanitation procedure to ensure strict compliance. Each staff has to under go the Food Handler’s Course conducted internally by KFC which is recognized by the Ministry of Health. They have implemented a hand washing procedure to ensure each staff washes his/her at least once every hour and whenever necessary KFC constantly focus on using disposable gloves and sanitized scoops.
  15. 15.  The trained service teams conduct regular inspections which include night treatment after operations hours and also provide follow-up checks during operation hours whenever needed.  All pesticides are approved by Pesticide Board and Material Safety Data Sheet on file for staff reference.

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