Kentucky Fried Chicken Malaysia

Topics: KFC, Fast food, Hamburger Pages: 10 (3161 words) Published: April 1, 2014

1.0 Introduction

(Figure 1, Logo of KFC
Kentucky Fries Chicken, better known as KFC, is one of the leading fast food Franchise concepts of today; present in a variety of countries around the world. KFC was founded in 1930 by Colonel Harland Sanders, at his hometown Kentucky, but only in 1952 it has grown and become a true multi-domestic company. KFC has more than 15,000 outlets in 105 countries and territories around the world. The main aim of KFC is to increase and maintain the quality in fast food industry. KFC is the most famous and largest fast food franchise in Asia, such as Indonesia, China, Malaysia, Japan and Korea. In Malaysia first KFC was opened in 1973, on Jalan Tunku Abdul Rahman and until now they have more than 500 restaurants through Malaysia. The main competitors of KFC are McDonald’s, Burger King, Wendy’s, Subway and many more. Besides providing normal package of fast food like French fries, burger and nuggets, KFC unlike their competitors provides health and vegetarian foods, and this allows them to have a more market share especially in Asia, where more people care about their health and also where more people such as Indians are vegetarian 2.0 Company Background

Colonel Sanders create KFC restaurant in 1930 at his hometown Kentucky. He created an unique technology on how to cook chicken with 11 spices. The business of the restaurant boom gradually and the secret recipe continue to use until now. In order to increase the profit Sanders made different types of snacks and he supplied them to the travelers in his gas station. In 1935, the governor of Kentucky granted him as KFC colonel for his great contribution to Kentucky catering industry. 1950

In 1950 KFC faced a crisis, and he sold his Café. But Colonel did not give up and he start to sell his secret recipe to the interested restaurants in Indiana, Ohio and Kentucky around. The first authorized KFC restaurant was established in 1952 in Salt Lake City. Within the 5 years KFC was opened 400 outlets in the United States and America, and it was a beginning of the franchise operation in catering industry in the world. 1960

In 1963 Sanders sold recipe to 600 more outlets. In 1964 Sanders sold KFC to group of investors Brown and Massey for $2 million. They owned national and international franchise rights, in countries like England, Canada, and Florida. Later retail outlets reached all 50 states, Puerto Rico, Mexico, Japan, Jamaica, and the Bahamas. With 1,500 take-out stores and restaurants KFC ranked 6th in volume among food-service companies. 1970

By September 1970 KFC operated total of 3,400 fast-food outlets. In 1971 KFC merged with Connecticut-based Heublein Inc., a specialty food and alcoholic beverage corporation and KFC had reached $700 million. 1980

Harland Sanders died on December 16, 1980, but his business did not stop and in 1981 it reached $2.4 billion. By 1983 the company had made impressive progress. With 4,500 stores in the United States and 1,400 units in 54 foreign countries, no other fast-food except McDonald’s could compete with them. In 1986 PepsiCo bought KFC for $840 million. By late 1986 KFC developed new menu. 1990

In 1993, sales and profits of KFC outlets in Asia grow. Profit margin in Asia was double those in the United States. By the year 2000 more than 50 percent of KFCs restaurants were located outside the United States. Until now KFC is continuing to expanding foreign markets.

3.0 Servuction Model

(Figure 2, Servuction model
Source: self made)

Servuction Model – is a model used to illustrate the four factors that influence the service experience, including those that are visible and invisible to consumer. The Servuction model consists of four factors that directly influence customer’s service experiences. The first three factors are plainly visible to consumers which are servicescape,...

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