EXECUTIVE SUMMARY
This project is all about KFC (Kentucky Fried Chicken). In this project, the history, its establishment, its restaurants network all over the world, is being discussed. We mainly focused on its being socially responsible aspect. Besides being a big profit earning organization it is also working for the betterment of the society.
We have covered all the aspects regarding KFC’s socially responsible in Asia and rest of the world. If we look generally on KFC, Food, fun & festivity, this is what KFC is all about leading the market since its inception; KFC provides the ultimate chicken meals for a Chicken Loving Nation. Be it colonel sanders secret original recipe chicken or the hot & spicy version, every bit brings a YUM on our face. Serving delicious and hygienic food in a relaxing environment made KFC everyone's favorite, since then KFC has been constantly introducing new products and opening new restaurants for its customers.
KFC was already in the minds of people for their unique and great taste. But since after being engaging itself in different social acts it has become more prominent among the people.
2 CONTENTS
Topic Page #
1. Introduction…………………………………………………………….. 05 2. KFC- History………………………………………………….. 07 3. KFC Logo & Design…………………………………………... 09 4. Mission & Vision Statement…………………………………... 10 5. External Environment…………………………………………. 11 6. Strategy………………………………………………………… 12 7. Organization Structure & Design……………………………… 12 8. Culture…………………………………………………………. 13 9. HRM…………………………………………………………… 13 10. International Operations……………………………………….. 13 11. Social Responsibility…………………………………………... 14 12. KFC & Cupola………………………………………………… 15 13. KFC & FCSR…………………………………………………. 19 14. KFC CSR- Worldwide………………………………………… 21 15. KFC CSR- Asia……………………………………………….. 24 16. KFC CSR- Pakistan…………………………………………… 26 17. Conclusion…………………………………………………….. 28 18. References……………………………………………………… 30 19. Declaration of Fairness………………………………………… 31 20. Member Contribution Sheet…………………………………… 32 21. Peer Evaluation Sheet…………………………………………. 33
3 INTRODUCTION
KFC
Type Wholly owned subsidiary Genre Southern fried chicken
1930 (original) (North Corbin, Kentucky) Founded 1952 (franchise) (Salt Lake City, Utah)
Founder Harland Sanders Headquarters Louisville, Kentucky Gregg R. Derrick President Key people Harvey R. Brownlea COO James O'Reilly VP for Marketing Industry Fast food
Products Fried Chicken and related Southern foods
Revenue $520.3 million USD (2007) Employees 24,000 (2007) Parent Yum! Brands Website http://www.kfc.com/
Kentucky Fried Chicken (KFC) is a very well known restaurant in the world, based in Louisville, Kentucky, rated at number 60 as the world most well known brand by Business week. It is one of the world’s largest chicken restaurant chain and third larges fast food chain in 2000.
4 With over 10,000 outlets in the world, KFC has maintained its title, for the last 60 years, of being the chicken Experts. Since then, KFC has been constantly introducing new products and opening new restaurants for its customers. Serving delicious and hygienic food in a relaxing environment made KFC everyone’s favorite.
KFC has more than 11,000 restaurants in more than 85 countries and territories around the world. Every day, nearly eight million customers are served around the world. KFC is part of Yum! Brands, Inc., which is the world's largest restaurant system with over 32,500 KFC, A&W All-American Food™,Taco Bell, Long John Silver's and Pizza Hut restaurants in more than 100 countries and territories.
KFC had a 55 percent share of the U.S. chicken restaurant market in terms of sales. KFC was one of the first fast-food chains to go international in the late 1950s and was one of the world’s most recognizable brands. KFC early international strategy was to grow its company and franchise restaurant base throughout the world.
With over 50% of the market share of chicken, it becomes very difficult for new companies who may want to enter the market. KFC has name recognition around the world and has been globally positioned for many years. KFC’s secret recipe of 11 herbs and spices has made it the leader in chicken for the last fifty years.
In early 2000 KFC had refocused its international strategy on several high growth markets such as Canada, Australia, the United Kingdom, China, Korea, Thailand, Puerto Rico, and Mexico.
KFC primarily sells chicken in form of pieces, wraps, salads and burgers. While its primary focus is fried chicken KFC also offers a line of roasted chicken products, sides and desserts. The popularity and novelty of KFC has led to the general formula of the fried chicken fast-food restaurant being copied by restaurant owners worldwide.
Outside of North America, KFC offers beef based products such as burgers or kebabs, pork based products such as ribs and other regional fare In some international locations, KFC may sell hamburgers. In the U.S., KFC began offering the Fish Snacker sandwich during Lent in 2006. The Fish Snacker consists of a rectangular patty of Alaskan Pollock on a small bun, and is the fifth KFC menu item in the Snacker category.
KFC restaurants also serve side dishes like coleslaw, various potato-based items; including potato wedges, french fries and mashed potatoes with gravy, biscuits, baked beans, macaroni and cheese, rice, steamed vegetables and corn on the cob.
The many sales of KFC during the 1970’s and 1980’s lead to a very confusing direction and took the focus of the company off of its original strategy. During the 1980’s and 1990’s KFC struggles were much do to the inability to bring new products to the market quickly and it’s innovation of new products. KFC fell behind the market in new products and was copying other fast food chains to stay competitive. KFC changed its strategy in
5 the late 1990’s, which included adding items to its menu. KFC then in an effort to address its declining market share began building smaller restaurants in non-traditional outlets.
Colonel Harland Sanders, founder of the original Kentucky Fried Chicken, was born on September 9, 1890. When he was six, his father died and his mother was forced to go to work while young Sanders took care of his three year old brother and baby sister. This meant he had to do much of the family cooking. By the time he was seven, Harland Sanders was a master of a rangeof regional dishes.
After a series of jobs, in the mid 1930s at the age of forty, Colonel Sanders bought a service station, motel and cafe at Corbin, a town in Kentucky about 25 miles from the Tennessee border.
He began serving meals to travelers on the dining table in the living quarters of his service station because he did not have a restaurant. The dining area was named "Sanders Court & Café" and was so successful that in 1936 Kentucky Governor Ruby Laffoon granted Sanders the title of honorary Kentucky Colonel. The following year Sanders expanded his restaurant to 142 seats, and added a motel he bought across the street.
When Sanders prepared his chicken in his original restaurant in North Corbin, he prepared the chicken in an iron skillet, which took about 30 minutes to do, too long for a restaurant operation.
In 1950’s he sold his properties and traveled the U.S. to sell his chicken to restaurant owners. Sanders entered into franchise agreements paying him five cents for each piece of chicken sold.
6 The first to take him up on the offer was Pete Harman in South Salt Lake, Utah; together, they opened the first "Kentucky Fried Chicken" outlet in 1952.
By the early 1960s Kentucky Fried Chicken was sold in over 600 franchised outlets in both the United States and Canada. By 1963 there was over 300 franchises and sales had reached $500 million. The Sandres, who was 74 years old at the time, decided to sell his business.
Sanders sold the entire KFC franchising operation in 1964 for $2 million USD to Jack Massey and John Young Brown Jr, who focused on expanding KFC throughout the US. In the late 1960’s, KFC was stablilized in the US and the owners turned their focus to international markets.
By 1971, KFC had established 2450 franchises and 600 company-owned restaurants in 48 countries. Since that time, the chain has been sold three more times, most recently to PepsiCo. PepsiCo acquired KFC in 1986 along with Pizza Hut and Taco Bell Shortly after. The KFC restaurants offer fried on-the-bone chicken, the Pizza Hut offer an array of Pizzas, and the Taco-Bells offer a mexican style product.In 1997 PepsiCo decided to spin off all three restaurants into an independent, publicly held company called Tricon Global Restaurants,Inc.
Then in 2002 Tricon acquired Long John Silver and A&W All American Food, who are known for their seafood, beef, and beer products. These are all well known brands with an enormous customers base. Restaurents where they shortly after, changed their Tricon name to Yum! Brands, Inc. As of today KFC is severing about 8 million customers globally. They have more than 11000 restaurents in more than 85 countries around the world.
Additionally, Colonel Sanders' nephew, Lee Cummings, took his own Kentucky Fried Chicken franchises and converted them to his own "spin-off" restaurant chain, Lee's Famous Recipe Chicken.
Today, some of the older KFC restaurants have become famous in their own right. One such restaurant is located in Marietta, Georgia. This store is notable for a 56-foot (17 m) tall sign that looks like a chicken. The sign, known locally as the Big Chicken, was built for an earlier fast-food restaurant on the site called Johnny Reb's Chick, Chuck and Shake. It is often used as a travel reference point in the Atlanta area by locals and pilots.
The original handwritten recipe, along with vials containing samples of each of 11 herbs and spices, is kept locked away at the KFC corporate headquarters in Louisville, Kentucky. Only 2 executives have access to it and to maintain security, the company uses multiple suppliers each providing only a portion of the final ingredients.
7 Colonel Harland Sanders, who came to symbolize quality in the food industry, dies after being stricken with leukemia in 16th December, 1980. Flags on all Kentucky state buildings fly at half-staff for four days.
Now Kentucky Fried Chicken Corporation (KFC) is one of the world’s largest chains of chicken restaurants and covers a large percentage of the U.S market in terms of sales. It is a chain of restaurants having its branches all over the world. As it is the world’s most recognizable brand, its international strategy was to grow more and more branches in the world through its greater quality product, customer service and cleanliness of the restaurants
KFC LOGO & DESIGN
The Colonel Harland Sanders has always been a part of the KFC logo. In the early years, we can see him to have a more serious face but over time, we can see that his face has become more friendly. Also, the red color in the logo has given the logo a more bold and lively look.
In April 2007, KFC unveiled their current logo in which the Colonel shed his white suit jacket used in past years in logo of KFC for a red cook's apron. The new logo includes bolder colors and a more well-defined visage of the late Kentucky Fried Chicken founder, who will keep his classic black bow tie, glasses and goatee. The logo is changing for only the fourth time in 50 years, and for the first time in nearly a decade. The smiling Colonel is featured against a red background that matches his red apron, with the KFC brand name in black thick lettering under his chin.
8 MISSION & VISION STATEMENT OF KFC
MISSION STATEMENT
“Recognition: we find reasons to celebrate the achievements of others and have fun doing it,” is right up there with “Customer Focus” and “Belief in People.” "Recognition is everybody's responsibility," says Chicago restaurant manager Adonis Chapel. He explains that since KFC started encouraging informal recognition, things have really changed. "You keep employees longer, they are happier, they work better for you."
VISION STATEMENT
Quoted from Yum! Brands, Inc., KFC’s parent corporation: “Our passion, as a restaurant company, is to put a YUM on people's faces around the world, satisfying customers every time they eat our food and doing it better than any other restaurant company. A&W, KFC, Long John Silver's, Pizza Hut, and Taco Bell offer customers food they crave, comeback value, and customer-focused teams. The unique eating experience at each of our restaurants make our customers smile and inspire their loyalty for life. Toward that end, our 750,000 associates around the world are trained to be customer maniacs.”
9 EXTERNAL ENVIRONMENT
-Owners Gregg C. Dedrick, age 45, President of KFC Corp. Many individual owners of franchises and establishments around the globe Yum! Brands, Inc. owns KFC Corp. today
-Customers Consumers continue to return to KFC because of the quality and good prices of their food KFC has a lot of fans and continues to grow to provide better customer service
-Suppliers Companies who provide KFC with raw materials and chicken
-Competitors Chick-fil-a is KFC’s biggest competitor, and quickly growing in popularity Other competitors include AFC Enterprises and McDonald’s
-Indirectly Interactive Forces State and government taxes Economic situation and food availability Legal and political guidelines for animal treatment
FOUNDING TRUTHS
“We at Yum! Brands, Inc., pledge to conduct our business according to this set of truths, which we believe to be the foundation for building the best restaurant company in the world.”
The founding truths are:
People Capability First…Satisfied customers and profitability follow. Respond To The Voice Of The Customer…Not just listen. The Restaurant General Manager Is Our #1 Leader…Not senior management. Run Each Restaurant As If It’s Our Only One…Avoid the trap of the averages. Recognition Shows You Care…People leave when you don’t. Great Operations and Marketing Innovation Drive Sales…No finger pointing. Operation Discipline Through Process and Standards…Consistency, not “program of the month”. Franchisees Are Vital Assets…Operate as one system, not two. Quality In Everything We Do…Especially the food.
10