History: KFC is a fast food restaurant chain headquartered in Louisville, Kentucky, United States, which specializes in fried chicken. An “American icon”, it is the world’s second largest restaurant chain overall (as measured by sales) after McDonald’s, with over 18,000 outlets in 120 countries and territories as of December 2012. The company is a subsidiary of Yum! Brands, a restaurant company which also owns Pizza Hut and Taco Bell. KFC was founded by Harland Sanders, who began selling fried chicken from his roadside restaurant in Corbin, Kentucky during the Great Depression.
Sanders was one of the first people to see the potential of the restaurant franchising concept, with the first “Kentucky Fried Chicken” franchise opening in Utah in 1952. The franchise popularized chicken in the fast food industry, thereby diversifying the market and challenging the dominance of the hamburger. Marketing himself as “Colonel Sanders”, he became a legendary figure of American cultural history, and his image is still prominently used in KFC branding. The company’s rapid expansion saw it grow too large for Sanders to manage, and in 1964 he sold the company to a group of investors led by John Y. Brown, Jr. nd Jack Massey. KFC was one of the first fast food chains to expand internationally, opening outlets in England, Mexico and Puerto Rico by the mid-1960s. Throughout the 1970s and 1980s, KFC experienced mixed fortunes domestically, as it went through a series of corporate owners who had little or no experience in the restaurant business. In the early 1970s, KFC was sold to the spirits firm Heublein, who were taken over by the R. J. Reynolds food and tobacco conglomerate, who sold the chain to PepsiCo. The chain continued to expand overseas however, and in 1987 KFC became the first Western restaurant chain to open in China.
The chain has since expanded rapidly in China, and the country is now the company’s most profitable market. PepsiCo spun off its restaurants division as Tricon Global Restaurants, which later changed its name to Yum! Brands. KFC primarily sells fried chicken pieces and variations such as chicken sandwiches and wraps, salads and side dishes such as French fries and coleslaw, desserts and soft drinks, often supplied by PepsiCo. Its most famous product is pressure fried chicken pieces, seasoned with Sanders’ “Original Recipe” of 11 herbs and spices.
The exact nature of these ingredients is unknown, and represents a notable trade secret. Larger portions of fried chicken are served in a distinctive cardboard “bucket”, which has become a signature of the chain since being introduced by franchisee Pete Harman. KFC is famous for the slogan “finger licking good, which has since been replaced by “Nobody does chicken like KFC” and “So good” Locations: China KFC in China, displaying the 1997 – 2006 logo KFC pioneered Western-style fast food in mainland China when it opened its first outlet in Beijing in November 1987.
It is the largest restaurant chain, with 4,260 branches, and China is one of the only countries in the world where McDonald’s is not the dominant fast food chain. Clifford Coonan of The Irish Times described the chain as “by far the most pervasive symbol of Western culture in China. ” KFC believes it has been successful in China because it has adapted its menu to suit local tastes, offering such items as rice congee, egg custard tarts and tree fungus salad, with an average of 50 different menu items per store. The Dragon Twister is a wrap that includes fried chicken, cucumbers, scallions, and duck sauce.
Chinese consumers like spicy chicken, and the Zinger burger is the highest selling menu item. The chain is helped by the fact that fried chicken has been a staple Chinese dish since antiquity, whereas rival chain offerings such as hamburgers are foreign and relatively unknown. The chain has adapted to a market in which, as at 2010, there were only three restaurants per million of population in contrast to the sixty per million in the United States: stores are two to three times larger than American (and European) outlets; many are open 24 hours a day and provide home delivery; and two new products are released each month.
Warren Liu, a former vice-president of Tricon Global Restaurants (the KFC parent company) argued that, “being the first … has continued to provide KFC with a substantial competitive advantage. ” Ninety per cent of Chinese sites are company owned, in contrast to just 11 per cent internationally. The chain immediately set itself apart in the late 1980s when it hired managers from emerging Asian economies rather than importing American managers. KFC also created its own distribution infrastructure, as none existed.
After this start, the chain’s continued growth in the region can be largely credited to Yum! chief executive David Novak, who expanded 100 stores in 1997 to 4,800 in 2013. Since 2006, Yum! has also operated the East Dawning chain, which incorporates Chinese cuisine alongside the traditional KFC menu items. In 2008, David Novak said that he envisioned eventually operating more than 20,000 restaurants in China, saying: “We’re in the first inning of a nine-inning ball game in China”. At the start of 2008, the chain added its first Chinese street snack to its menu, the youtiao.
The street snack menu was expanded in 2010 with the addition of the shaobing. In August 2010, KFC China had its biggest product launch to date: the Rice Bowl heralded the arrival of rice as an accompaniment across the chain. In December 2012, the chain was hit by allegations that its suppliers injected antiviral drugs and growth hormones into poultry in ways that violated food safety regulations. This resulted in the chain severing its relationship with 100 suppliers, and agreeing to “actively co-operate” with a government investigation into its use of antibiotics.
KFC China sales in January 2013 were down 41 per cent against the previous year. United States A co-branded Taco Bell/KFC in Morrisville, North Carolina The basic model for KFC in the United States, not necessarily duplicated elsewhere, is a focus on low prices, a limited menu (29 items on average) and an emphasis on takeout. Many KFC locations are co-located with either Taco Bell or Pizza Hut, the other Yum! Brands restaurants. When Yum! owned Long John Silver’s and A&W Restaurants, these brands were often co-branded with KFC as well.
Often these locations behave like a single restaurant, offering one menu with food items from both restaurant brands. The concept originated in 1991, with a KFC-Taco Bell combination opening in Virginia. Some locations were also opened as combinations of KFC, Taco Bell and Pizza Hut; this experiment has been described as a “failure” and was satirized in the film Young Adult (2011) as a “Kentacohut” Yum! CEO David Novak blames franchisees not having their hearts in the venture as the reason for its failure.
Since its founding, Sanders and KFC used cottonseed or corn oil for frying, but in the 1980s the company began to switch to cheaper oils such as palm or soybean. In the 2000s it became apparent that these oils contain relatively high levels of trans fat, which increases the risk of heart disease. In October 2006, KFC said that, in the United States, it would begin frying its chicken in trans fat-free oil. This would also apply to their potato wedges and other fried foods, however, the biscuits, macaroni and cheese, and mashed potatoes would still contain trans fat.
By April 2007 trans fat-free soybean oil had been introduced in all United States KFC restaurants. Low U. S. sales in 2008 were blamed on a lack of new ideas and menu items. The Spring 2009 launch of Kentucky Grilled Chicken only resulted in a temporary halt to the sales decline. In 2010 KFC announced a turnaround plan that included improving restaurant operations, introducing value items and providing healthier menu options. In the same year, Advertising Age noted that KFC was losing market share to its smaller chicken restaurant rival, Chick-fil-A.
In 2011 Bloomberg referred to KFC USA as “an also-ran to McDonald’s Corp” In 2012, Forbes magazine described how many of the KFC outlets were “aged and uninviting”, and that the chain “hasn’t introduced an exciting new food item in ages”. Some analysts have speculated that KFC will spin off its ailing U. S. operations. In the United States, as reported in 2012, the company is divesting control of company-owned restaurants to franchised operations, with the intention of reducing overall company ownership to 5 per cent of sites from the 35 percent of the previous decade. United Kingdom and Ireland
As at 2012 there are 840 KFC restaurants in the UK and Ireland, making it one of the largest international KFC operations. Restaurant ownership is split 40 per cent equity and 60 per cent franchised. The UK workforce has over 8,000 people. Annual sales in the UK amount to 60,000 metric tonnes. The majority of KFC products, including bread, beans, and sauces, and salads when seasonally available, are sourced from the UK. Sixty percent of their chicken is purchased from the four largest suppliers in the UK, including 2 Sisters Food Group, and delivered fresh to outlets at least three times a week.
The remaining 40 per cent is sourced from Europe, Thailand and Brazil. All of their Original Recipe chicken is sourced within the UK. KFC claim their Original Recipe chicken is no different from a chicken that can be bought in the supermarket.. The most popular menu item in Britain is the mini fillet burger with annual sales of more than 19 million, followed by snack box popcorn chicken (14 million) and the boneless meal for one (12 million sales plus). The chain has sold Lavazza coffee since 2009. England had the first overseas franchise for Kentucky Fried Chicken in 1964.
England also had the first overseas branch, which opened in Preston in the North West in May 1965, and was the first American fast food restaurant chain in the country, pre-dating the arrival of McDonald’s, Burger King and Pizza Hut by almost a decade. In the early days most business was done after 8pm, when the primary customers were young men arriving from the pub. Non-essential trans fats were removed by 2007. System sales were over $1 billion in the UK and Ireland in 2009, having more than doubled in the past 5 years, and representing over 100 million meals served per year.
In 2011, chains across the UK and Ireland stopped using palm oil and switched to rapeseed oil in order to reduce saturated fats across its range by 25 per cent. Food miles have also been reduced as this oil is sourced from Kent instead of Asia. In May 2007, KFC UK requested that the Tan Hill Inn in North Yorkshire refrain from describing its Christmas menu using the trademarked term “Family Feast”. KFC quickly backed down after the story received national press attention and negative publicity. A similar occasion in 2009 involved a small takeaway in Scotland using the “Family Feast” term.
The takeaway refused to cease using the term, and KFC backed down after the story attracted widespread media attention. India The first Indian KFC opened in the city of Bangalore in June 1995. Protests ensued from left wing, anti-globalization and environmental campaigners, as well as local farmers, who objected to the chain bypassing local producers. Many Indians were concerned about the onslaught of consumerism, the loss of national self-sufficiency, and the disruption of indigenous traditions The protests came to a head in August 1995, when the Bangalore outlet was repeatedly ransacked KFC Bangalore demanded, and received, a police van ermanently parked outside for a year Rural activist M. D. Nanjundaswamy subsequently claimed KFC would adversely affect the health of the impoverished, by diverting grain from poor people to make the more profitable animal feed Former environment minister Maneka Gandhi joined the anti-KFC movement. KFC was also accused of using illegally high amounts of monosodium glutamate (MSG) and frying its food in pork fat A store in Delhi was closed by the authorities, purportedly for health reasons, but more likely to avoid a repetition of the Bangalore incident.
The two stores only managed to attract a limited, affluent clientele, and KFC decided to abandon the Indian market. KFC returned to India in 1999, with a new Bangalore outlet. This was the sole KFC in India until 2004, when the chain began to expand, albeit with a makeover and a range of new vegetarian dishes. As of December 2012, there were 280 KFCs in the Indian market. As well as the standard KFC offerings, the chain sells a chickpea burger and hot wings with chilli lemon sprinkles. Product: KFC’s primary product is pressure-fried pieces of chicken made with the “Original Recipe” seasoning mix.
It is marinated, dipped in a flour and egg based mixture, and breaded with flour before being fried. This is usually available in two or three piece individual servings, or in a family size cardboard bucket typically holding from 6 to 16 pieces of chicken. Chicken pieces include drumstick, thigh and keel, and a backbone based breast cut. The chicken is not cooked to order, and is instead kept warm in ovens until sold. If it is not sold within 90 minutes, it is discarded, under KFC’s “hot & fresh” policy.
The company also sells chicken burgers (including the Zinger and the Tower burgers); wraps (“Twisters” and “Boxmasters”); and a variety of finger foods, including crispy chicken strips and hot wings. “Popcorn Chicken” is one of the most widely available KFC products, and consists of small pieces of fried chicken. A number of locations sell grilled chicken, often under the “Brazer” line. In some locations, chicken nuggets are sold, sometimes using the “Kentucky Nuggets” trademark. Some locations sell chicken livers and gizzards. Value dishes are sold under the “Streetwise” name. Some U.
S outlets offer an “All You Can Eat” buffet option with a limited menu. KFC adapts its menu internationally to suit regional tastes, and there are over three hundred KFC menu items worldwide. In Asia there is a preference for spicy foods, such as the Zinger chicken burger. A number of territories, such as Ecuador and Singapore, sell fried seafood products. KFC Hot Wings fried chicken in Malaysia. Side dishes often include French fries, coleslaw, barbecue baked beans, corn on the cob, mashed potato, bread rolls and American biscuits. Salads include the bean salad, the Caesar salad and the garden salad.
In a number of territories, KFC sell onion rings. In Asia, rice based side dishes are sold. In Malaysia, chicken meatball soup is sold. In the U. S. , potato wedges are sold instead of French fries. Because of the company’s previous relationship with PepsiCo, Yum! Brands had a contract to supply Pepsi soft drinks until the end of 2012. Most territories still supply PepsiCo products, but exceptional territories include South Africa, the Philippines, Malaysia, Turkey, Romania, Greece, Israel and Sri Lanka, which stock drinks supplied by The Coca-Cola Company.
In Peru, the locally popular Inca Kola is sold. In a number of Eastern European locations, beer is offered, in addition to soft drinks. An own brand dessert is the soft serve ice cream product known as “Avalanche”, which contains chocolate bits. Launched in 2009, the Krusher/Krushem range of frozen beverages containing “real bits” such as Kit Kat, Oreo and strawberry shortcake, is available in over 2,000 outlets. Apple pie is a popular dessert worldwide, but other items include sundaes, tres leches cake in Peru, and Ben & Jerry’s ice cream in Germany and the Netherlands.
In 2012 the “KFC am” breakfast menu began to be rolled out internationally, including such items as pancakes, waffles and porridge, as well as fried chicken. Secret recipe KFC Original Recipe fried chicken Sanders’ Original Recipe of 11 herbs and spices is one of the world’s most famous trade secrets. It is critical to the company as a benchmark by which KFC differentiates its product from those of its competitors. Franchisee Dave Thomas argued that the recipe was a success because “everybody wants in on a secret” and John Y. Brown called it “a brilliant marketing ploy”.
The recipe is not patented, because patents eventually expire, whereas trade secrets can remain the intellectual property of their holders in perpetuity. The New York Times described the recipe as one of the company’s most valuable assets. Early franchisee Pete Harman credited the chain’s popularity to the recipe and the product, and John Y. Brown cites the “incredibly tasty, almost addictive” product as the basis of KFC’s staying power. Allen Adamson, managing director of brand consultancy Landor’s New York practice, remains unconvinced about the contribution of the secret formula aspect.
He argues: “The story may still be part of these companies’ folklore, but I’d be surprised if more than two per cent buy the brand because of it”. A copy of the recipe, signed by Sanders, is kept in a safe inside a vault in KFC’s Louisville headquarters, along with 11 vials containing the recipe’s herbs and spices. According to Yum! Brands, portions of the secret recipe are known by some of its executives, but only two people in the entire organization know it in its entirety, while a third executive knows the combination to the safe.
A limited number of KFC employees know the identities of the three executives, that latter of whom are not allowed to travel together on the same plane or in the same car for security reasons. One of the two executives said that no one had come close to guessing the contents of the secret recipe, and added that the actual recipe would include some surprises. To maintain the secrecy of the recipe, half of it is produced by one KFC supplier before it is given to McCormick, who add the second half. A computerized process is then used to blend the mixture. Managers: David C.
Novak (born 1953) is an American businessman. ) He current serves as the Executive Chairman, Chief Executive Officer, and President and Chairman of the Executive & Finance Committee at YUM! Brands Inc. (B. A Journalism) He served as Chief Operating Officer of Pepsi-Cola North America, and Executive Vice President of Marketing and National Sales for the Pepsi-Cola Company. He has been an Independent Director of JPMorgan Chase & Co. since 2001. He also serves as a Director of Bank One Corporation. He was named 2012 Chief Executive of the Year by Chief Executive magazine. Yum! Brands, Inc. or Yum! s a United States-based Fortune 500 corporation. Yum! operates or licenses Taco Bell, KFC, Pizza Hut, and WingStreet restaurants worldwide. Prior to 2011, Yum! also owned Long John Silver’s and A&W Restaurants. Based in Louisville, Kentucky, it is the world’s largest fast food restaurant company in terms of system units—more than 39,000 restaurants around the world in over 125 countries. In 2011, Yum! ‘s global sales totaled more than US$12 billion. Roger Eaton is the current President and Chief Concept Officer of Kentucky Fried Chicken (KFC). Born in South Africa, Eaton moved to Australia in 1984.
Prior to becoming President and Chief Concept Officer of Kentucky Fried Chicken (KFC), he was Senior Vice President/Managing Director of YUM! Restaurants International South Pacific from 2000 to 2008. In April 2009, he appeared in an American commercial promoting the introduction of Kentucky Grilled Chicken to the KFC menu. In May 2009, he appeared again in an American commercial to announce the ending of the free Kentucky Grilled Chicken that was promoted earlier. Due to “overwhelming success”, the company could not afford to honor the coupons, and Eaton had to announce later compensation for the coupons.
