Kentucky Fried Chicken and the Global Fast-Food Industry:
KFC : world’s largest chicken restaurant chain and third largest fast-food chain in 2004 One of the first fast-food chains to go international, one of the world’s most recognizable brands. KFC’s early international strategy: grow its company and franchise restaurant base throughout the world refocused in 2004 on several high growth markets (China, Canada, UK, Australia, South Africa, and more) company-owned restaurants (greater control over product quality, service and restaurant cleanliness). In other international markets grow primarily through franchises, operated by local business people who understood local market.
Company’s History of KFC:
Harland Sanders (1952) created “Colonel Sanders Recipe Kentucky Fried Chicken” by 1960 more than 200 take-home retail outlets and restaurants (franchises) across the U.S.
He sold his business to Jack Massey and John Young Brown these 2 businessmen concentrated on growing KFC’s franchise system across the U.S.
By the late 60’s strong foothold in the U.S., attention for international markets In 1969 joint venture with company in Japan, and rights to operate franchises in England were acquired.
By 1971, KFC had established 2450 franchises and 600 company-owned restaurants in 48 countries Heublein, Inc
In 1971 KFC was acquired Heublein, Inc. (business for producing alcoholic beverages) little experience in restaurant business.
Conflicts between Colonel Sanders and Heublein management Sanders upset over poor quality control and restaurant cleanliness.
Heublein sent in a new management team to redirect KFC’s strategy “back-to-the-basics”-strategy. New restaurant construction stopped until existing restaurants could be upgraded and operating problems removed. This strategy enabled KFC to gain better control of its operations (soon it was again aggressively building new restaurants) R.J. Reynolds Industries, Inc.
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