KFC China has been suffering food safety issue in China for years. This project was to analyze the crisis and propose a communication plan.

1. Jie Gao
Crisis Communication
Final Project
Oct. 15 2014
KFC China & Food Safety Crisis
ANALYSIS
1. Threat:
Crisis: September 17, 2014, a KFC customer posted a photo on social media saying that
she bought this chicken wing from KFC yesterday and found maggot inside. This post
went viral immediately. Consumers were outraged and complaining and scolding KFC.
Two days later, two more photos were posted and many online media forwarded the
photos which showed that crazy customers smashed one KFC store to release their anger.
What does it mean:
Business environment: food safety issue is always the most significant and sensitive topic
in China. People pay extra attention to food and ingredients, and they use social media to
expose uncertified food. At the same time, Chinese government regulates harshly foreign
fast food companies that are occupying domestic market and changing people’s dietary
habits. Increasing number of media, especially government controlled news organizations,
published editorials or news releasing that KFC’s chicken is from sick or chemically
processed chicken made by uncertified small factories.
2. Magnitude:
The crisis hurts KFC’s reputation directly and seriously.

2. First, KFC would lose consumers’ trust. Consumers would have an impression that KFC
equals unhealthy food, makes people sick, and uses uncertified meat.
Second, KFC would face negative reviews, comments or posts on social media, perhaps
Weibo. It would bring KFC a really bad image and trigger more problems.
Third, stakeholder would loss confidence about KFC, so it would suffer financial
damage.
From the analysis above, KFC’s crisis can be plotted as following:
3. Likelihood:
If KFC were keeping transparent about the source of chicken, and how it is cooked by
KFC, consumers would trust KFC even though a single chicken wing has problem.
Consumers will stay with KFC and trust that KFC can handle this crisis well.

3. If KFC fails to pay much attention on food safety, consumers would think KFC is not
taking care of consumers and not has a sense of responsibility. Along with government’s
rumors, KFC’s reputation would get damaged badly.
4. Affected Stakeholder Groups:
Employee: Employees would feel unsecure about their jobs as well as personal safety
since customers were outraged and did crazy things. Employees expect KFC to give an
internal statement about how severe of the crisis and company’s plan to solve the crisis.
They also expect KFC to promise that it would strive to protect employees from hurts.
Shareholder: Shareholders are concerned about the income and shares, especially those
who are new to KFC franchise. Shareholders expect KFC to have a complete calendar to
solve the crisis. KFC is supposed to keep shareholders’ confidence.
Supplier: Suppliers are worried that their business partnerships with KFC would be
suspended. KFC is supposed to inform the suppliers with the process of solving the crisis.
If the problem does happen on suppliers, KFC would let them know in advance so that
suppliers could adjust and improve correspondingly, otherwise their partnership will be
ended.
Customers: Customers’ attitude toward KFC and even the entire fast food industry
would be influenced. Customers expect KFC to be transparent about their source of
chicken and how it is cooked. Also, consumers want to know the reason that maggot is
found in chicken.
Other fast food companies: Due to KFC’s food safety scandal, government or
regulators would create more strict laws and enhance censorship, so that the entire

4. industry is intervened by force. Other fast food companies expect KFC to follow the rules
and laws to maintain the entire industry’s reputation.
5. Additional Information Requirement
Police report: KFC should know what exactly happened to that consumer who found the
maggot in chicken wing.
Response on social media: how consumers’ reaction and comments on social media.
Lawyer: KFC should have lawyers who know Chinese law or regulations about food
safety, healthy issue and foreign companies. The most important thing is always get
prepared for lawsuit.
Nutritionist or food expert: people trust expertise and professional. KFC should have
third party endorsement to regain consumers’ trust.
Crisis Action Plan
1. Formulate Organizational Objectives:
• Recover from crisis and maintain profitability
KFC’s major business objective is to maintain the selling and profit, but the
perquisite is to make company survive this crisis.
• Keep the position in competition
KFC has longer business history than McDonald’s in China and maintains the
leader in competition. The company’s objective is to keep this priority while
fast food industry in China is getting competitive.
• Build strong business networking and relations

5. Along with the unique business environment in China (Government has much
power to intervene), KFC’s third business objective is to build connections
with both government institutions and non-government organizations.
2. Determine Crisis Response Strategies and prescribe actions to take:
Objective: Recover from crisis and maintain profitability
Strategy 1: Clarify the truth behind this incident
Tactic 1: Build a crisis team to investigate. They would contact local
police to know how did she find the maggot, and then bring the report to scientist to
analyze. At the same time, other team members go to that KFC store to interview
employees and investigate the incident.
Tactic 2: Connect Consumers on social media – Weibo. KFC could keep
post updates regarding their investigation, reply consumers’ questions and relief their
concerns.
Tactic 3: Issue statement and investigation report. After the investigation,
KFC could issue both internal and external statements to disclose the result and clarify
responsibility.
Strategy 2: Stimulate more spend in KFC
Tactic 1: Release more coupons both online and offline. KFC can build
partnership with some Chinese group-purchase websites to offer more deals, dinner
special for example, and give away exclusive deals to KFC’s employees.
Tactic 2: Create a new meal, for example, “healthy breakfast”. KFC
always adjusts its menu according to Chinese dietary habits. This “healthy breakfast”

6. includes vegetarian soup, corn cookie and tofu which are relatively cheaper, but healthier.
In this way, KFC not only attracts more consumers, but also spends less on ingredients.
Objective: Keep the position in competition
Strategy 1: Open more KFC stores.
Tactic 1: Decrease the franchise fee to attract more investors
Tactic 2: Arrange lobbies in different cities and attend business fair.
Strategy 2: Increase customer service quality.
Tactic 1: Organize a customer service competition campaign among
different stores in one city. The employees who get the best reviews will receive bonus.
Tactic 2: Slow down the process of hiring new employees and spend the
money on employee training. KFC can hold workshops and invite nutritionists, food
experts, and professors who are expertise in customer service.
Objective: Build strong business networking and relations
Strategy 1: Widely connect with nonprofit or charity which relates to food, health
and children.
Tactic 1: Encourage KFC employees to participate in events and activities.
Also, KFC can be the food sponsor for these events.
Strategy 2: Help government solve problems. Jack Ma told CNN that the best
way to deal with government relations in China is to help government solve problems.
Tactic 1: Start building a foundation for children’s food safety.

7. Strategy 3: Offer exclusive deals to online shopping websites and propose
partnership with local retailers.
Tactic 1: Offer coupons for consumers who use mobile app to order or
write review for KFC or shopping on Taobao.
Tactic 2: Offer exclusive deals to student community by RenRen, Weibo
and Tencent.
3. Execute and Evaluate:
During the process of solving the incident and recovering from the crisis, KFC is
supposed to enhance security guards, monitor social media and analyze its responses.
Evaluation:
• Customers responses and comments on social media
• KFC’s revenue and profit
• Customer service feedback
• Media coverage
Crisis Communication Plan
1. Formulate Communication Objectives:
• Maintain customers’ trust and shape perceptions that KFC is trustworthy,
taking responsibility and caring about its costumers
• Build employees’ morale and provide support when incident happens
• Keep shareholders’ confidence and give them an impression that KFC can not
only control the communication agenda, but also foresee the future.

8. 2. Determine Communication Strategies
Strategy 1: Keep the general business running well and keep social media active by
following and updating with this crisis.
Strategy 2: Organize internal conferences for shareholders and employees.
Strategy 3: Build or keep internal online communication platform active during the
crisis.
Strategy 4: Manage media relations
3. Identify Audiences:
• Customers: customers include KFC’s regular customers (offline) as well as
those who are participating in social media discussions(online)
• Employees
• Shareholders: investors and potential investors
• Competitors and other business partners
4. Craft Message:
Scenario 1: The investigation’s result shows that KFC’s chicken has problems
Message 1: KFC sincerely apologizes for victims and would like to take full
responsibility.
Message 2: KFC will recall all chicken that is from a certain supplier.
Message 3: KFC will renew cooking system, double check the chicken source and
keep cooking environment clean to remove any potential unsecure factors.

9. Scenario 2: It was that customer’s mistake of not keeping the chicken wing in a right
way, so that the chicken wing turned bad.
Message 1: Cook now, sell now. KFC produces the freshest food to customers.
Message 2: The first KFC in China dates back to 1987, over 20 years, KFC
always knows Chinese customers the best.
Message 3: KFC strive to help protect food safety and provide reliable meat to
millions of families and children.
5. Choose Tactics:
Tactic 1: Issue an internal statement to keep KFC’s business running normal, calm
down employees who feel unsecure.
Tactic 2: Issue a photo statement on Weibo where the victim posted the photo. The
statement covers the result of investigation and the messages from either scenario 1 or
scenario 2.
Tactic 3: Pitch KFC’s “healthy” campaigns or other improvement decisions to media
to show that KFC cares.
Tactic 4: Organize a “kitchen tour” for children. KFC can use this opportunity to
show children how to make burgers, at the same time; KFC shows that kitchens are
clear and organized.
Tactic 5: Display sample meat every day in each store for any examination.
Tactic 6: Produce a new commercial. In this commercial, CEO will introduce the
process of KFC’s suppliers delivering the natural meat and how it saved in safe

10. environment. KFC will try to be transparent in this commercial to regain customers’
trust.
Tactic 7: Third part endorsement. Nutritionists prove that KFC follows the right
procedure of delivering, saving and cooking meat. In addition, KFC can invite a
trustworthy celebrity in its commercial. This video will be posted on Youku (China’s
Youtube).
Tactic 8: Corporate social responsibility. KFC can donate money to food or children
related charities and nonprofit organizations in name of their employees. It not only
enhances employees’ confidence and morale, but also builds the brand image.
6. Evaluation Criteria
• Employees’ performance. It can be measured by customer service feedback
and social media comments.
• Customers’ reaction to KFC’s new campaigns and commercials. Videos’
“Likes” and “View” can be monitored online.
• Online survey about how KFC handled this crisis and customers’ satisfaction.
• Monitor media coverage