KFC CASE STUDY

1. -AISHWARYA DAS
-BBA 3rd SEMESTER

2.  KFC is based in Louisville, Kentucky, and is
the world’s most popular chicken restaurant
chain.
 Founded by Colonel Harland Sanders in 1952.
 More than 11,000 outlets.
 85 countries and territories around the
world.
 8 million customers each day.
 Yum! Brands is run by David Novak.
 Chairman & CEO KFC Division is run by
Cheryl Bachelor, President and Chief Concept
Officer.

3.  1952, Col. Sanders started franchising his recipe door
to door financed by his $105.00 SS Check.
 1964, Col Sanders had more than 600 franchised
outlets in the US and Canada.
 1964, Sold his interest in his company for $2 million
to a group of investors.
 1966, KFC went public.
 1969, Listed on the NYSE.
 1971, KFC was acquired by Heublein Inc. for $285
million.
 1982, Heublein & KFC Inc. was acquired by RJ
Reynolds.
 1986, RJ Reynolds & KFC, was acquired by PepsiCo,
Inc. $840 million.

4.  1997, PepsiCo, Inc. spined-off of its qsr’s into
independent Tricon Global Restaurants.
 2002, Tricon changed it's corporation name
to Yum! Brands, Inc.
 NOW: Yum Brands, Inc. is the world's largest
restaurant company in terms of system units
with nearly 32,500 in more than 100
countries and territories. Yum! Brands, Inc.,
is a Fortune 300 company Yum! Brands, Inc.
global system sales totaled more than $22
billion in the year 2001. Current Market Cap
value on the NYSE is 7.2 Billion

6.  STRENGTHS – multi branding strategy,
reputation, name and recognition, employee
loyalty, brand expansion.
 WEAKNESSES – conflicting corporate
cultures, no defined target market, time
taken to market new products.
 OPPORTUNITIES – international appeal to
American products, economies of scale n
scope.
 THREATS – consumer health food trend,
saturated fast food industry.

7.  KFC is a public traded company with
responsibilities to all the shareholders.
 By becoming a more socially responsible
company it tries to attract new type of
investors holding the present stockholders.

8.  KFC provides complete security services such
as user authentication, electronic signature,
transaction security control , password policy
etc.

9.  Aim for high quality food and committed to
ensure food safety by stringent control to
maintain our standards -
 Cook their products well above the minimum
temperature recommended by WHO.
 Follow standard procedure to minimize risk of
cross contamination between raw and ready-to-
eat products.
 Use of non-hydrogenated palm oil that contains
insignificant amount of trans fat and it is 100%
free.
 Team of food technologists constantly
experimenting with new flavors and creative
concepts to provide more values, choices and
healthy options for their customers.

10.  Conduct an annual supplier audit namely the
STAR AUDIT which is a YUM proprietary
program. The STAR AUDIT comprises two
versions:-
 The Food Safety & Quality Systems Audits.
 Suppliers performances are constantly
monitored through regular submission of
quality reports Food technologists conduct
quarterly QA evaluations on in-house
suppliers KFC use quality raw materials from
reputable suppliers such as NESTLE, UBF,
McCain & Jomalina

11.  KFC established Hazard Analysis Critical
Control Program(HACCP)
 It is a management system for the assurance
of food safety.
 It includes identifying, evaluating and
controlling hazards i.e. physical, biological &
chemical to ensure food safety.

12.  KFC have a field service team personnel
known as CHAMPS Recognition Specialist to
conduct regular evaluations.
 The evaluation covers the cleanliness and
sanitation of the premises and equipment,
personal hygiene, hospitality in service,
accuracy in the serving order, good
maintenance, product quality standards and
speed of service.
 KFC follows strict temperature control and
shelf life to ensure the food served to their
customers is safe and fresh.

13.  The main attributes for KFC restaurant
excellence are CHAMPS -
 C- Cleanliness
 H- Hospitality
 A- Accuracy
 M-Maintenance
 P –Product Quality
 S – Speed of Service

14.  KFC has Mystery Customer Program known as
CHAMPSCHECK which evaluates customers
experience in their restaurants.
 They have appointed a reputable surveillance
company to check against the CHAMPS
concept Every restaurant is subjected to a
visit by a Mystery Customer and the dine-
in/take away experience is evaluated and
scored KFC sets a minimum standard of 90%
as passing score for this evaluation

15.  KFC’S daily operations manual clearly
highlights each step of the sanitation
procedure to ensure strict compliance. Each
staff has to under go the Food Handler’s
Course conducted internally by KFC which is
recognized by the Ministry of Health. They
have implemented a hand washing procedure
to ensure each staff washes his/her at least
once every hour and whenever necessary KFC
constantly focus on using disposable gloves
and sanitized scoops.

16.  The trained service teams conduct regular
inspections which include night treatment
after operations hours and also provide
follow-up checks during operation hours
whenever needed.
 All pesticides are approved by Pesticide
Board and Material Safety Data Sheet on file
for staff reference.