KFC in US Fast Food Market

Topics: Fast food, Hamburger, KFC Pages: 8 (368 words) Published: August 8, 2014
KFC in US Fast Food Market

US Fast Food Roadmap

Evolution

Present Market

The Future

• Started just over 50
years ago

• The largest fast food
market in the world
growing at a CAGR of
4%

• High growth enables
even smaller players
to emerge as
formidable forces in a
short period

• It provided an
opportunity for
manufacturers to cut
costs and increase
profits

• Total revenue in 2013
* was USD 191 bn

• Huge conglomerates
dominate the industry;
employ more than 3.7
million** people
worldwide and will
continue to grow

US Fast Food Market
US Fast Food Market
205
199

USD Billion

200

195

195
190

186

189

190

191

2012

2013

185
180
175
2010

2011

2014

2015

Growth Drivers
• The opportunity to mechanise workplace completely and employ cheap labour • Introduction of assembly lines in the kitchen made the services of an experienced chef unnecessary
• Increasing buying power of the American consumer keeps the growth of the industry at healthy levels in spite of intense market competition.
• Aggressive advertising strategies and efficient targeting of customers has helped the industry’s consistent growth rate.

KFC Roadmap

KFC Revenues
KFC Sales in the US, World
12

USD Billion

10

8.4

8.1

9.8

9.4

9

8.7

8
6

5.1

5

4.8

4.6

4.5

4.4

4
2
0
2009

2010

2011
World

2012

2013

2014E

US

• Kentucky Fried Chicken (KFC), the world’s second largest restaurant chain, as measured in sales terms, is a subsidiary of Yum! Brands
• Focus of KFC – low prices, limited menu and emphasis on takeout • In the US, the company has been witnessing a downward sales trend over the past few years due to increasing competitor pressure
• KFC intends to bounce back by introducing newer products in 2014-15

KFC Competitor Landscape
Competitor Landscape – US Fast Food Market
(2013)
McDonalds

19%

Wendy's
4%
6%
63%

Subway
KFC

2%
6%

Starbucks
Others

Competitor Growth Drivers
McDonalds
•Balancing Core
Competency
•Focused Customer
service

•New Menu Choices
•Keeping Restaurants
contemporary

Starbucks
•Innovative Concepts

Subway
•Highly Creative

•Pushing beyond Core
Competency
•Customer
Connections

•Advanced
Expertise
•Brand Oriented
Expansion

Wendy’s

•Customer
loyalty
•Promotions
•Expansion

KFC – SWOT Analysis

Strengths
* Second largest player in
the US fast Food Industry
* Original 11 herbs and
spice recipe
*Parent company has
strong market presence

Opportunity
* Increasing Demand for
healthier food
* Introducing new products
to its existing range
* Has reinvented its typical
chicken menu

Weakness
* Poor Quality Suplies
* Negative Publicity
*Unhealthy Food menu
Lack of Marketing Efforts

Threat

*Saturated Fast food
market in the USA
*Local KFC like outlets
*Trend towards healthy
eating
*FDA restrictions

THANK YOU

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