Yum! Brands
Presented By:
Ashish Chowdhary
MBA International Business
Introduction of the Company
Yum! is an American fast food company and one of the world’s largest fast food restaurant companies with presence in over 125 countries, operating the licensed brands which are famous worldwide e.g. KFC (Kentucky Fried Chicken), Taco Bell, Pizza Hut, A&W Restaurants, Long John Silver’s and the Wing Street.
The company was founded in year 1997 as Tricon Global Restaurants, Inc., later in the year 2002, the company acquisition with Lexington, Kentucky based Yorkshire Global Restaurants post that it reframed as YUM! Brands LLC.
*The total global sales till year 2014 for Yum! was more than US$13 billion with major divisions at India & China
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are focused on improving the nutritional attributes of their menu, promoting physical activity programs and always providing great tasting food. The global debate regarding health and nutrition and the role of quick service restaurants has highlighted many challenges.They are committed to being a productive part of this debate and to helping identify solutions.
Yum! appointed Jonathan Blum as Chief Global Nutrition Officer in early 2012 to improve nutrition. He is driving strategy for nutritional improvements across all of Yum! Brands. Blum is leading a global team of nutritionists in developing global guidelines and ultimately elevating the nutritional quality of their food.
“Our vision for the company is that we want to be the defining global company that feeds the world. We have transformed this business from being a primarily U.S. business, where 80% of our profits in 1997 were coming from the U.S., to where more than 70% of our profits in 2011 come from outside the U.S. Our strong performance and leadership in China and other emerging markets have been the catalysts for our growth” — David Novak, Chairman and CEO, Yum! Brands
Goal: Maintain the safest, highest quality food supply and preparation in the
The inherent problem with fast food restaurants is food quality, enhancing taste by adding increased calories, fasts, sodium and sugar. Wendy’s menu is no exception. “Wendy’s Dave’s Hot N Juicy ¾ Ib Triple Cheeseburger, the calories in it are 1,090, 66 grams of fat and sodium is 1,990” (America’s Best and Worst Food). “Soft drinks can lead to obesity, research found out that for every can or glass of sugar- sweetened beverage a child drank during that time, the child’s body mass index inched up and the chances of becoming obese increased to 60%” (Eric Schlosser pg. 56).
Fast food critics have revealed that fast food patrons are more indolent and slothful in handling home chores, while the other individuals who prefer healthy home-cooked meals are more energetic, active and willing to deal with chores better. They also pointed out several reasons why fast food eateries may be less healthy than other types of restaurant, these include time, costs and signatory dishes (Spurlock and Schlosser). But in the actual context, this may not be so for all fast food restaurants as more restaurants are digging into improving their meals’ healthiness for the sake of their customers and the public on the whole. Hence, whether fast food should be blamed to be the main trigger to obesity is still disputable. Though research has demonstrated that people that eat fast food inclined to be obese compared to those who do not (Paeratakul et al.), will a greasy home-made stir-fry dish do a better job to enhance the consumers’ health than a pair of roasted chicken sandwiches in a fast-food
Fast food restaurants are the go to for busy schedules, is what David Zinczenko reminds us in “Don’t Blame the Eater”. In the past couple decades, it has been seen how eating fast food on the go, eventually catches up in a negative way. Due to this negative increase in obesity, people are now trying to find who to point the finger at. Who other than the Fast food chains themselves, since that is where the problem stemmed from. The problem with finger pointing is that not one party is fully to blame. Many fast food restaurants actually offer healthier alternatives for customers, but majority are probably not aware of them. This is where consumer awareness is
In 2016 the majority of Yum shares are held by U.S.-based institutional investors including Vanguard Group, Corvex Management and State Street Corporation”. (Wong, 2016) The idea was to provide the company with better access to capital markets and to attract investors willing to pay for a piece of this lucrative pie. This fast food chain at the time had “17,000 outlets and more than $900 million cash on hand”. In September of 2016, yum sold a combined $460 million stake to Alibaba affiliate. A Beijing-based investment firm founded by former
Yum! brands, Inc, is one of the largest and most popular restaurant chain across the globe. It is based in Louisville Kentucky operating approximately 41000 restaurants in 125 countries and territories of which Taco bell, Pizza Hut, KFC, Long John Silver man and A&W chains are their brands since the spin-off in1997 when those brands were transferred from PepsiCo to Tricon company and later Yum! changed their name from Tricon to Yum in 2002. A&W and Long silver man are no longer subsidiaries of yum since 2011 as Yum focused on their 3 main brands kfc, taco bell and pizza hut and have acquired little sheep and east downing as their new subsidiaries. Yum! Generates revenue mainly from their food products like chicken, pizza and Mexican grilled
Just as the name suggest, fast foods are prepared quickly and most people enjoy eating the food within the restaurants as others will carry the food away to enjoy it elsewhere. Erick Schlosser in his book Fast Food Nation mentioned some of the problems that involve fast food production and consumption. McDonald on the other hand urges that some foods can be dangerous to health. His book has been credited for its success in influencing the problem solving with respect to fast food production, which varies from economic, social and political issues. Eventually, fast food market has attained numerous customers globally. Unfortunately, these foods can be the genesis of lifestyle problems like diabetes and weight problems. Steve in his video exhibits his constant hard work and determination towards making his fast food business successful. The government has taken the initiative to create awareness about the impacts of these foods and ensure that the ingredients used meet the health standards.
YUM states that it is a company with a heart and makes food accessible to the hungry (YUM, n.d.). YUM participates in the World Hunger Relief in which the company has donated more than $35 million in cash and food donations, provided 140 million meals and more than a billion impressions globally (YUM, n.d.). YUM also tries to raise awareness by using an approximate value of nearly $500,000 in public service announcements, advertising, public relations, web-based communications and in-restaurant promotional materials (YUM, n.d.). YUM also participate in many nonprofit organizations events as volunteers and encourage its employees to
operates several fast food brands in Australia. KFC is the major brand that Yum runs. The main product of KFC is made by chicken meat. Therefore, the strength and the weakness of KFC are obviously. People who like chicken meat will highly be attracted by KFC. However, it gives customer who like fast food a limited choice. Just use the one kind of meat will make the brand to be more professional. But it also will narrow its potential markets.
Every day while sitting on the couch eat a burger, and soon many people learn what the obesity hype is all about. Fast food companies are advertising more food for less money with fast service. The media tends to change images for their target customers, to make the food more appealing to those that are watching. Laziness is one of the main causes of obesity in our country. Obesity in the United States is at a high due to the increasing fast food chains, media influence, and a lack of exercise. The idea of having a meal made for them in less than five minutes is somewhat exciting to the view of many individuals.” fast food firms introduced these alternative meals in response to changing consumer tastes”(Buchholz). Many fast food stores offer the customer fast service, and a great tasting meal. They provide their service with a smile and a meal that can cost less than 10 dollars. When people mix poor diet with poor
As of now in the United States there are 22 fast food franchises. McDonalds was the first franchise to open in 1940 and since then they have been the leading and most successful franchise in America (“The Raw Prawn” n.p.). Other franchises include: Burger King, KFC, Wendy’s, Arby’s, and Taco Bell. Each of which target young students and children. Most of them have a value menu where items to purchase are cheap and tasty but very unhealthy. Some fast food restaurants provide a toy for children with their meal which attract them to come again and again ( “Eating Yourself to Death” n.p.). In addition, some restaurants contain an indoor play ground which attracts small children even more. The fast food industry mainly brings customers for their tasty food and simple convenience, they attach a drive thru to their building making it faster for customers to purchase and collect their food which is also less time consuming. Recently in the past few years, fast food franchises have begun to change their restaurant and attempt to become healthier as a whole, in some fast food restaurants they have a nutritional menu to choose from which generally contain healthier food compared to the regular menu (“The Raw Prawn” n.p.).
As mention before, Restaurant Brands International is a merger company that contains Burger King, a coffee shop and a restaurant called Tim Hortons. Since it was a merger that occurred in 2014, there isn’t much info for the company; however, since Burger King has been almost as old as McDonalds so much of the info will come from Burger King. Burger King is practically the same as McDonalds created in 1950s yet a few years later after its competitor was born. The main difference of how it was created was that Burger King started off like a stove and that name of the stove was named Insta-Boiler.
Training and development help the KFC team develop the individual capabilities, leadership and life skills they need to build a career that suits them. This is the reason why KFC has invested time and effort in providing fantastic programs like KFC degrees, apprenticeships and various programs that make up yum! university. All the training is provided by yum! which has five universities in UK.
So, Yum! Brands must know the competitors of the Taco Bell in Malaysia market that offer the similar product that satisfy the same needs and wants of the customer. The Yum! Brands should produce more valuable product for the Taco Bell to winning the customer over the competitor in Malaysia market. The competitor in Malaysia that satisfy the same needs and wants of customer such as KFC, McDonald, Pizza Hut, Burger King and many more. Yum! Brands must to identify all the weakness of their competitors in Malaysia market such as the weakness in their foods, services, packaging and many more. So, Yum! Brands must develop the strategies that is everything in the competitors goods and services in Malaysia can’t to provide to the customer, Taco Bell can provide it. What they can’t and haven’t prepare, Taco Bell can and will have prepared. Taco Bell must know all the marketing strategy that have been use by the competitors, especially the promotional method that they use to market their product. Taco Bell must follow up all the marketing strategy and make some differences
Sales had been flat for the first five years of the 2000s and were in decline. "In 2007, Kraft Foods China was an unprofitable, $100 million business that was not growing," noted Sanjay Khosla, Kraft Foods’ president of developing markets, in an interview published by the Boston Consulting Group. Kraft was even thinking of pulling the product out of the Chinese market completely, due to poor sales.
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