Click on one of the questions below to learn more.
How much will I pay in royalties and advertising? What fees will I pay when I become a KFC franchisee?
Initial Franchise Fee =
Monthly Service Fee (Royalties) =
Advertising =
$45,000 (if you open a KT multi-brand restaurant, the fees will be $75,000)
5 percent (5%) of Gross Sales
5 percent (5%) of Gross Sales (Includes national and local contributions)
The above amounts do not include the initial investment required to construct the restaurant building, training expenses, grand opening expenses or opening inventory. Please refer to the KFC Franchise Disclosure Document (FDD), Item 7, for more in-depth information on the total investment.
How long will it take to
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Key holders of the restaurant could include the franchisee, an Above Store Leader, Restaurant General Manager or Assistant Manager. Training ranges from eight to ten weeks (depending on the unit to be opened) and is conducted both centrally in Louisville, KY and in certified training stores. There is a fee for the training and the Franchisee is responsible for all costs incurred including travel and lodging of the management team.
Do you have a quality assurance program? Who enforces quality?
KFC monitors quality using a variety of programs. One is a customer based shopper program where restaurants receive customer feedback on their store experience. Secondly, food safety audits are conducted by a third party service to ensure that food safety standards are met at the store level. Finally, the company conducts CFF Standards Audits in store and feedback is given to the operators regarding execution excellence. Franchisees are required to meet certain operating standards as part of their franchise agreement.
Will I be required to use specific accounting service software at my restaurant?
KFC’s FDD describes the type of electronic cash register system and software requirements to be used in the restaurant. It is strongly recommended that you use the KFC supported MERIT back-of-house operating platform. You must prepare and keep detailed records regarding all
Several marketing strategies are in place that set Chick-fil-A apart from the competitors. One of their key marketing strategies which is their well-known slogan, “Eat Mor Chikin”, they first introduced this June 1995 their first billboard stood in Atlanta with the eat more chicken cows, (Perreault, Cannon, & McCarthy, 2014, p. 591). It is one of the longest-running and one of the most successful advertising campaign in the United States (Perreault, Cannon, & McCarthy, 2014, p. 591). This slogan was created to entice customers to move away from the typical hamburger fast-food restaurant, and attempt something different from a strictly chicken restaurant. Some of the aspects of marketing strategies that are used by Chick-fil-A are not incredibly different than any other fast food restaurant in America. However, what does separate them is their Christian based beliefs. Chick-fil-A’s approach as a faith based and a giving company that strives to support our communities through charity. Some of the impressive opportunities that Chick-fil-A offers are it assists thousands of employees with fostering children, has a scholarship foundation set up called the WinShape Foundation established in 1984 to “shape winners” quoted from the video “Eat Mor Chikin” (Except on Sunday).
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.
The target market for Chick fil A during breakfast hours are adults and adolescents. The parents are mostlying working parents that are acomping their school age children. Some are also single adults with no children.
Your initial franchise fee, which will range from several thousand dollars to several hundred thousand dollars, may be non-refundable. You may incur significant costs to rent, build, and equip an outlet and to buy initial inventory. You also may have to pay for operating licenses and insurance, and a “grand opening” fee to the franchisor to promote your new outlet.
The first choice of business is the franchise. In a franchise, legal binding agreement is entered into between two firms, the franchisor (the product or service owner) and the franchisee (the firm to market the product or service in a particular location). The franchisee pays a certain sum of money for the right to market this product” (Rubin, 1978, p.224). The franchising is more prevalent in the restaurant industry (Hoffman & Preble, 2003). The two distinct features of this business type include; first, in order to notable service components should
Chick-fil-A is one of the most recognizable fast food chains in America. Operating over 1,250 locations in 37 states and Washington, D.C., Chick-fil-A was founded in 1967 in an Atlanta, Georgia shopping center. The company is widely known for their famous “Eat Mor Chikin” advertising campaign which feature cows attempting to convince restaurant goers to switch to eating more chicken, ideally at Chick-fil-A restaurants. This theme has also introduced different marketing material such as clothing, merchandise, and calendars containing coupon offers. It has even won a national silver EFFIE award for its creativity and effectiveness in advertising. These advertisements have helped to drive Chick-fil-A in becoming a national brand. The company is a unique in many. What sets it apart from its competition is the way it surpasses industry norms through its balance between financial performance and ethical values.
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.
The franchise fee for a Dairy Queen restaurant is $25,000 to $35,000. The total estimated investment ranges from $382,000 to $1.8 million, with liquid cash available of $400,000. A 4-5% royalty fee on gross monthly receipts is paid to the company.
Multinational companies opt to franchise as a way of expansion strategy (Siebert, n.d.). Chick-fil-A is dominant only in the US market. The firm has only ventured into the Canadian market in the airport of Calgary. Many United States Corporations have engaged in franchising in the United States as a form of the expansion strategy. Laws concerning franchising are neither strict in Canada. Our form of non-equity mode will be franchising, therefore our form of entry will be a small-scale entry. This will allow our company to get exposure in key locations and learn from Canadian consumers. The benefit to franchising at first is that it is less costly and less risky for the franchisor.
Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in
Managers usually are locals and will spend time training at other restaurants before opening the restaurant. KFC's goal is to give every employee the opportunity to pass a formal certification procedure to gain credibility and qualifications.
For this system, customers are allowed to order their food online wherever they are, by simply having internet, they can place their order by simply going to KFC website. Through order processing systems and transaction processing system
KFC Does two types of planning, Strategic Planning and Operational Planning. Strategic Planning is done to increase its market worth value of the market share and Operational Planning includes launching of new product to change or innovate its product line for the customers. Planning objectives of KFC are to expand the organization on all over the UAE, to create and build superior quality for the customers, to follow marketing mix strategies and to generate superior financial return for KFC and KFC’s employees. Menu planning is done by researching. Supply chain management planning includes the full process related to the supply of raw materials which include chicken, spices and packing material and to increase operation, the objectives of supply chain management planning is to increase the level of outsourcing, increase globalization, increase the supply, increase the competitive pressure and increase the customers.The KFC mission statement is to “sell food in a fast, friendly environment that appeals to pride conscious, health minded consumers”.
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.
The spinning off the restaurant divisions, in my opinion, is a success for PepsiCo. Although Yum! Brands has been a quite successful, thriving company with record setting growth and profitability, I would still support the decision today. PepsiCo had too many oars in the water with the beverage business, the snack business (Frito Lay) and the fast food restaurant business. It could not successfully manage all the diversity it had acquired. I commend the management team’s decision (led by, then President/CFO, Indra Nooyi and now Chairman/CEO) (Fox News 2012) to cut a highly potential part of its business off and to implement a strategy to focus on its main products and their distribution. This strategy has proved to be the right move for this organization. Below is a table which illustrates the fluctuations with the stock price from the first acquisition of Pizza Hut through October 31, 2014 (though the stock price posted on 11/3/2014). You can see that the acquisition years (in yellow) show a negative impact on the stock price, with two of the three being significant. You should also note that, in the year of divesture,