- Pages: 8
- Word count: 1828
- Category: KFC
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KFC, known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky.
In the midst of the depression, Harland Sanders who was born just outside Henryville( Indiana), opens his first restaurant in the small front room of a gas station in Corbin, Kentucky. Sanders serves as station operator, chief cook and cashier and names the dining area “Sanders Court & Café.”
In 1936, Kentucky Governor Ruby Laffoon makes Harland Sanders an honorary Kentucky Colonel in recognition of his contributions to the state’s cuisine. The Sanders Court & Café adds a motel and expands the restaurant to 142 seats.
In 1952,the Colonel began actively franchising his chicken business by traveling from town to town and cooking batches of chicken for restaurant owners and employees and awarded Pete Harman of Salt Lake City with the first KFC franchise.
In 1957 Kentucky Fried Chicken first sold in buckets.
The fast-food chain known today as “KFC” began back in the ‘30s when Harland Sanders, (born September 9, 1890) began serving chicken to the patrons of his service station in Corbin, KY. He didn’t have a restaurant then, but served people on his own dining table in the living quarters of his service station. Eventually the operation grew and moved across the street to a motel and restaurant. In 1935, in recognition of his contributions to the state’s cuisine Governor Ruby Laffoon made him a Kentucky Colonel. In 1952 Pete Harman became the first Kentucky Fried Chicken franchisee, with a store in Salt Lake City. In 1956, at the ripe young age of 65, the Colonel sold the Corbin, KY, location and went on the road to enlist new franchises. In 1964 he sold the chain to a group of investors including John Y. Brown Jr. and Jack Massey for $2 million.
The Colonel continued on as spokesman for the company, which went public in ‘69, and then was sold to Heublein Inc. in ‘71 until his death 1980. PepsiCo, Inc. acquired the chain in ‘86, eventually changing its name and logo to KFC in ‘91. Today, KFC has well over 9,000 locations worldwide, including China, Russia, and Australia. It has only been over the past few years that the company has had a kid meal program that offered premiums. Virtually all of these have had been licensed products, looking to Sony (Beakman’s World, Ghostbusters); Marvel Comics (Spider-Man, Hulk, Fantastic Four, Wolverine); Disney (Timon & Pumbaa); Saban (Masked Rider); and others (Scholastic/ Animorphs; United Media-BBC Worldwide/Wallace & Gromit). Unlike many of the other fast food operations, KFC tends to keep their promotions running for longer periods of time, having only four to six promotions throughout the course of the year. The advantage to this approach to meal premiums is twofold with pluses for both KFC and collectors. On KFC’s side, the company incurs less traffic, marketing, and operational expenses that are associated with acquiring and scheduling promotions. While for collectors, the advantage is that there is more time to acquire preferred toys. A New Era: A New Name
In 1991, Kentucky Fried Chicken announced that it was changing its name to “KFC” and updating its packaging and logo as well to reflect a more modern look. According to the public relations info given out at the time the name change was to lure back customers to a restaurant now offering foods branded as “better for you”. Needless to say, there was more to the name change than just a PR face-lift. According to outer sources, the real reason for the name change actually dated back to 1990 when the Commonwealth of Kentucky – which was apparently mired in debt – actually trademarked the name of their state. Needless to say, the state then required any company using the word “Kentucky” for business reasons to obtain permission from the Commonwealth, and to pay licensing fees for the use of the name. While this might have been conceived as a bold and unique scheme to alleviate the state’s debt, it proved spectacularly unsuccessful.
Kentucky Fried Chicken refused to pay royalties on a name it had been using since 1953, as a matter of principal. After a year of futile negotiations with Kentucky the company simply altered its name to KFC and timed the announcement to coincide with the introduction of its new packaging and products. Kentucky Fried Chicken was not the only company to refuse to cow-tow to the State. The Kentucky Derby officially changed its name to The Run for the Roses, while many seed and nursery companies which had previously offered Kentucky Bluegrass now sell “Shenendoah Bluegrass. The Dawn of Darth Maul
One of the highlights of the 1999 fast food toy season was KFC’s set of Star Wars: Episode I—The Phantom Menace toys that were issued in conjunction with sister companies Pizza Hut and Taco Bell. The three franchises not only joined forces to issue a comprehensive set of Star Wars Episode I toys, they actually linked their three Web sites (via a Star Wars hot button), so that Web surfers could easily access the company’s sister sites. Still, not wanting to do the job half-way, each of the three Tricon Web sites was also linked directly to Lucas’ own Star Wars site (www.starwars.com), so that the extreme among them could also access the very latest official Star Wars info direct from the grand poo-pah himself. All and all a very cool concept (no matter what might be said of the movie itself). Unfortunately for toy collectors, about four or five years ago KFC stopped issuing toys with their kids’ meals, and instead of a collectible item, they began packaging their kid meals in a colorful “laptop” container with games and trivia on the box. Profile of colonel Harland sanders
Colonel Harland Sanders was born September 9, 1890 in Henryville, Indiana. At the age of 40, Sanders was running a popular gas station that also served food, so popular the governor of Kentucky designated him a Kentucky Colonel. Eventually, Sanders focused on franchising his fried chicken business around the country, collecting a payment for each chicken sold. Profile
Fast food entrepreneur. Born Harland Sanders on September 9, 1890 in Henryville, Indiana. After his father died when he was six, Sanders became responsible for feeding and taking care of his younger brother and sister. From the age of 10, he held down numerous jobs, including farmer, streetcar conductor, railroad fireman and insurance salesman. At age 40, Sanders was running a service station in Kentucky where he would also feed hungry travelers. He eventually moved his operation to a restaurant across the street, and featured a fried chicken so notable that Sanders was named a Kentucky Colonel in 1935 by Governor Ruby Laffoon. After closing the restaurant in 1952, Sanders devoted himself to franchising his chicken business.
He traveled across the country, cooking batches of chicken from restaurant to restaurant, striking deals that paid him a nickel for every chicken the restaurant sold. In 1964, with more than 600 franchised outlets, he sold his interest in the company for $2 million to a group of investors. Kentucky Fried Chicken went public in 1966 and was listed on the New York Stock Exchange in 1969. More than 3,500 franchised and company-owned restaurants were in worldwide operation when Heublein Inc. acquired KFC Corporation in 1971for $285 million. Kentucky Fried Chicken became a subsidiary of R.J. Reynolds Industries, Inc. (now RJR Nabisco, Inc.), when Heublein Inc. was acquired by Reynolds in 1982. KFC was acquired in October 1986 from RJR Nabisco, Inc. by PepsiCo, Inc., for approximately $840 million. Sanders continued to visit the KFC restaurants around the world as a spokesman until he died in 1980 of leukemia at the age of 90.
KFC SWOT ANALYSIS
•2ndOnly to McDonald’s in Foreign Sales$550M
•Strong Cash Flows
•Generate $1B each year
•Very strong InternationallyUK, Middle East, Thailand, China, Japan,Korea, Mexico
•Strong Franchise and License Fee revenuesfor cash flow.
•Interactive relationship marketing
•Strong trademarks recipes
•Ranks highest among all chicken restaurantchains for its convenience and menu variety.
•Largest multibranded restaurant in the world100 KFC and Pizza Hut combos 600 KFCand Taco Bell combos
•Recent drop in sales for KFC
•Failed to rank in top 20 in growth in2000.
•Same Store sales declined
•Lack of point of scale scanning system
•Admitted inability to provide qualityservice
•Lack of knowledge abut their customers
•Lack of relationship building withemployees, customers and suppliers i.e.Chick-fil-a
•Question of over franchising leads toloss of control and quality
•Lack of focus on R&D
•Growth of 18-24 age demographic
•Increase in U.S. median income
•International beef scare from mad-cowand hoof and mouth disease
•Home Meal Replacement Market willexceed an estimated $577 billion by2020
•Targeting to growing ethnic markets – Asian American and Hispanic
•Increase delivery service
•Rated 83 out of 100 in terms of competitiveness
•Increasing wage rates directly affectmenu prices
•85% annual employee turnover for fast –food market
•Supermarkets and new competitorsthreaten HMR market
•International Exchange Rates
•Health Trend away from fried foods
•Changing customer demands
•Quality of Service Focus
Problems faced by kfc
A concern has been raised that this article’s Criticism section may be compromising the article’s neutral point of view of the subject. Possible resolutions may be to integrate the material in the section into the article as a whole, or to rewrite the contents of the section. Please see the discussion on the talk page. (April 2010)
KFC in the US has been accused by Greenpeace of a large destruction of the Amazon Rainforest, because the supply of soy used for chicken food that KFC receives from Cargill has been traced back to the European KFC. Cargill has reportedly been exporting soy illegally for several years. The Greenpeace organization researched the issue and brought it to the attention of the parent company YUM! Brands, Inc. The parent company denied the illegal operation, and said that their supply of soy is grown in parts of Brazil. Greenpeace has called on KFC to stop purchasing soy from Cargill, to avoid contributing to the destruction of the Amazon.
In 1971, Sanders sued Heublein Inc., KFC’s parent company at the time, over the alleged misuse of his image in promoting products he had not helped develop. In 1975, Heublein Inc. unsuccessfully sued Sanders for libel after he publicly referred to their gravy as “sludge” with a “wallpaper taste”. In May 2007, KFC (Great Britain) requested that Tan Hill Inn, in the Yorkshire Dales, North Yorkshire, UK refrain from using the term ‘Family Feast’ to describe its Christmas menu, although this problem was quickly resolved with the pub being allowed to continue use of the term. Wages and working conditions
Balmoral KFC workers and allies picketing the store
In New Zealand, KFC youth workers earn NZ$10.13 an hour. Staff at the Balmoral, Auckland store went on strike for two hours on December 3, 2005 after Restaurant Brands, the franchise holder, offered no wage increase in contract negotiations. In March 2006, Restaurant Brands…