Case Study: An Introduction Of The Kentucky Fried Chicken

The company of restaurants started in 1946 when Truett Cathy opened his first restaurant in Georgia. They are credited with inventing the Chick-Fil-A’s boneless breast of chicken sandwich. In the 1960’s, he pioneered the opening of the restaurant in different malls in Atlanta. It has grown to become the largest quick service chicken restaurant chain in the United States based on their domestic annual sales and with over 1900 branches countrywide. The restaurant is privately held and family owned and has been progressing in the delivery of exclusive services to all their customers. The mission of the restaurant is to give identity and value to their clients and the vision is to be America’s best service quick restaurant.

Boston Chicken implemented a franchising strategy that differed from most other franchising companies at the time. Boston Chicken focused its expansion through franchising the company through large regional developers rather than selling store franchises to a large number of small franchisees. In that, an established network of 22 regional franchises that targeted their operations in the 60 largest U.S. metropolitan markets and in order to do so, the franchisee would have been an independent experienced businessman with vast financial resources and would be responsible for opening 50 – 100 stored in the region. Boston Chicken focused on widespread

Chick-fil-A was established as a company in 1946, it was first known as Dwarf Grill and later became known as Chick-fil-A in the 1960’s. The company has since then grown into a billion-dollar corporation with over 2,000 restaurant locations in 43 states, the company is still privately held and family owned.

As we are all aware of, KCF is a fast food restaurant that specialises in fried chicken and its headquarters is located in Louisville in USA. It is considered the world’s second largest restaurant chain after McDonalds with 18,875 outlets in more than 110 countries and territories as of December 2013, but it is the world’s most popular chicken restaurant. KCF was founded by Harland sanders in the year of 1930. Its first franchise company was opened in Utah in 1952. After the first franchise was opened, KFC started expanding rapidly world-wide, this created a brand image for the company, and their logo became popular and was easily recognised by its external stakeholders. Its strap-line (finger lickin good) defines the deliciousness of their chicken.

He was granted a licence to be a franchisee and opened his first store in Des Plaines near Chicago, Illinois in 1955. By 1959 he and the McDonald brothers had 100 restaurants running. In 1961 Kroc brought the rights of the McDonalds restaurants from the brothers for $2.7 million. 9 years later, he had over 1,000 restaurants in America, Canada and Puerto Rico. Kroc then made the decision to expand stores faster and further away, by 1972 he had opened an additional 1,000 restaurants worldwide.

Although Chick-fil-A have become a restaurant giant, it is still controlled by Cathy family. They hold a special business model, they chose their franchisees really carefully. Although it is franchise, Cathy family still had ownership of every restaurant (Grantham, R., 2011).

Obesity has grown into a rampant issue all over the United States, over the past few decades. Fast foods also have increased their outlets in the nation, in turn, depicting a success in the business venture. It is clear that fast foods have become quite cheap in comparison to healthy, homemade meals. Subsequently, people have turned to eat fast foods for economic reasons. Convenience is yet another reason behind people’s high indulgence in eating fast foods other than healthy, homemade meals. One does not need to prepare meals when dealing with fast foods; it is just a matter of walking into a fast food restaurant. However, the rampant feeding on fast foods in America has adverse effects that seem to affect even

Facts and History of Chick-fil-A (2016), noted how Chick-fil-A was founded by Truett Cathy in the early 1960's, after Mr. Cathy had opened a restaurant earlier, 1946, called Dwarf Grill in Hapeville, Georgia. Truett Cathy was not one to follow others in fact his determination and vision led him to open the first restaurant inside a mall in 1967 making him a first mover, by marketing the idea of combining food and shopping (first mover, business dictionary). The first mover decision that Cathy made has established Chick-fil-A as one of the largest fast food Chicken industries in the United States and led the way for many fast food chains to follow.

The first KFC was opened in Tiananmen Square, China 1987; it struggled as western food was unknown to the east. This was still a very conservative nation, not prepared for the “Fast Food” takeover. The restaurant did pretty well, but grew slowly. The Harvard business review, stated that “in 1992 the Chinese government granted foreign companies greater access to markets, KFC China’s managers gradually developed the blueprint that would transform the chain.” (Yums' China, 2017) Although they have done well for themselves they struggled, as growth was steady but slow and their customer base was shrinking. “In November 2016 Yum China Holdings, Inc. became a licensee of Yum brands in Mainland China; they have exclusive rights to KFC.” (Yums' China, 2017) Yum controls approximately 7,300 restaurants and more than 400,000 employees in more than 1, 100 cities. YUMS generated over $8bln in sales in 2015.

Brands, Inc. owns three of the world’s best known fast-food franchises, which are Kentucky Fried Chicken (KFC), Taco Bell, and Pizza Hut. With a multi-branding strategy, a firm can combine its brands into the same location in order to increase sales and improve operating efficiency.

KFCOne of the major competitors for McDonald in the burger segment is KFC. It first came to India in 1995, where it was one of the first multinational food chains to have entered India. It proved not to be a very good time to have come to India where people were still not able to come to terms with multinationals coming to India, and it was targeted by many and remained a not so known food outlet, while the ones which came later became more popular. KFC India had to shut shop in the late 1990s after it faced heavy protests not only from anti-multinational groups but also animal rights' protector, PETA.

KFC is a fast food restaurant chain that specializes in fried chicken and is headquartered in Louisville, Kentucky, in the United States. KFC was founded by Harland Sander in year 1930 and went on to franchising in 1952.

Kentucky Fried Chicken (KFC) is a popular fast food chicken restaurant chain around the world. (Bell, Shelman, 2011) It is one of the subsidiary of Yum Brand. This company also operates the Pizza Hut and Taco Bell. (Yum! Brands, Inc, 2016) KFC was founded by Harland Sanders in 1952. (Bell, Shelman, 2011) Sanders was successful in creating the brand, even the logo of KFC brand is the portrait of him. He became a notable figure in American history thanks to his great contribution on creating KFC brand. Nowadays, KFC becomes more and more popular, the sales ranking of KFC was the 11th among the worldwide restaurant brands. (The QSR 50, 2015) The sales of KFC in 2014 was 4200 million dollars. (Details in Appendix 1) It means KFC has a large quantities of consumption needs. Actually, KFC has 14,577 restaurants around the world and 70% of them are located outside America (Yum Brand Annual Report, 2015). The restaurant profit was increased year by year from 2013 to 2015. (Details in Appendix 2) Therefore, it is potential to enlarge the customer base by analyzing consumer behaviors.

We begin our report by touching on the history of Krispy Kreme. Vernon Rudolph started Krispy Kreme in 1933 when he bought a doughnut shop from Joe LeBeau. He later established the first Krispy Kreme in Salem, North Carolina. After Scott Livengood became CEO, the company repositioned itself and focused on being a specialty retailer, rather than a wholesale bakery. They soon began expanding rapidly throughout the United States. This particular case took place in 2004 Krispy Kreme was beginning to run into some serious problems.

Providing customers with the best of both worlds: west meets east. In addition to its radical strategic approach of localization with regard to its food, they extended that viewpoint when selecting their management team. By hiring Chinese executives, Yum! Brands is able to build relationships with the local suppliers more easily and quickly. It definitely helps with their competitive advantage that chicken is a staple meat in China. Given these factors, it is clear that KFC has a competitive advantage in this market. However, taking a closer look at the industry and thinking longer-term, the competitiveness is undesirable but there is still potential to improve profitability. See the analysis