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Project: Detailed Case Study of KFC: History

This document provides a detailed case study of KFC, including its history and vision/mission. 1) KFC was founded in 1952 by Harland Sanders at age 65 and became one of the first modern franchising systems. It grew significantly through the 1960s. 2) Sanders perfected his secret recipe of 11 herbs and spices while operating restaurants and motels. He later franchised his chicken recipe and founded Kentucky Fried Chicken. 3) Today, KFC has over 22,000 locations globally and remains one of the largest fast food chains worldwide, focusing on consistent quality, customer focus, and sustainable growth.

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Sudarshan Gopal
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0% found this document useful (0 votes)
103 views20 pages

Project: Detailed Case Study of KFC: History

This document provides a detailed case study of KFC, including its history and vision/mission. 1) KFC was founded in 1952 by Harland Sanders at age 65 and became one of the first modern franchising systems. It grew significantly through the 1960s. 2) Sanders perfected his secret recipe of 11 herbs and spices while operating restaurants and motels. He later franchised his chicken recipe and founded Kentucky Fried Chicken. 3) Today, KFC has over 22,000 locations globally and remains one of the largest fast food chains worldwide, focusing on consistent quality, customer focus, and sustainable growth.

Uploaded by

Sudarshan Gopal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PROJECT: DETAILED CASE STUDY OF KFC

Name: Sudarshan Gopal


Batch: B12

Enrollment: 16104059

HISTORY

In 1952 at the age of 65, when most people are looking at slowing down and
retiring, Harland David Sanders began Kentucky Fried Chicken. It was fortunate
that Colonel Harland Sanders did not believe in the adage that “the future belongs
to the young,” or they would likely have never tasted the “finger-lickin'” fried
chicken so many enjoy today. KFC is arguably one of the most widely recognized
brands worldwide, and the Colonel is one of the pioneers of modern franchising.

Following his father’s death when Harland was only six, his mother’s work kept
her away from home for extended periods and young Harland needed to learn to
cook and care for his siblings. By the time he turned ten he took a job as a
farmhand and, during his life before KFC, he held several positions. These
included painting horse carriages, being a streetcar conductor, selling insurance,
and working as a railroad fireman. Harland's also worked as a blacksmith’s helper,
cleaned ashbins on trains, operated a ferry boat on the Ohio River, sold automobile
tires, and even became a midwife delivering babies.

He managed a gasoline service station and was the secretary at the Columbus,
Indiana Chamber of Commerce.

In 1930 Sanders became a franchisee of Shell Oil Company. Times theyre hard and
money was tight during the Depression, so, to improve his sales, he began to sell
chicken dishes, steak, ham, and other comfort food to his customers.

His original restaurant was a kitchen table he placed in front of the service station
and eventually, he opened up Sander’s Café—his first true restaurant—across the
street from the service station.
Because he felt it took too long to cook, his original restaurant did not start out
serving fried chicken. That did not come until later when he developed his secret
recipe of 11 herbs and spices and began to cook his chicken in a pressure cooker he
invented to speed the frying process. I recall Dave Thomas telling me that one of
the dangers of the Colonel’s cooking process was that the pressure cookers
frequently exploded.

Sanders successfully operated a motel with an attached 140-seat restaurant in


Asheville, North Carolina during the 1940s. But, during World War II with gas
rationing, the motel and restaurant began to fail. It was in that restaurant that he
perfected his secret recipe and the construction of his pressure fryer.

The Sanders Court & Café was popular with travelers on their way to Florida
through the town of Corbin, Kentucky but when Interstate 75 was built in the
1950s—bypassing the town—Sanders was forced to retire and sell the restaurant.
In 1952, living on his $105 a month Social Security benefits check Colonel
Sanders embarked on his last career.

Pete Harman was a friend of Sanders and operated one of the largest restaurants in
Salt Lake City. Persuading Harman to begin selling his recipe chicken in his "Do
Drop Inn" restaurant was a success, increasing sales by 75%. It was Don Anderson,
a painter hired by Harman, who came up with the name "Kentucky Fried Chicken"
and it was Harman that created the original bucket that still exists today. Soon
several more restaurant owners signed franchise agreements with Sanders for the
princely franchise fee of four cents per chicken.

It was during this early franchise period that the Colonel met Dave Thomas. Dave
at the time was working as a cook for the Clauss family operators of the Hobby
House restaurants. It was Dave who developed the classic wobbly red-and-white-
striped chicken bucket that became the classic sign outside of each Kentucky Fried
Chicken restaurant. Thomas also streamlined the method of food-to-customer
delivery by creating the “snake” line—still used today in many restaurants.

Against the Colonel’s advice, Dave took over eight failing restaurants and was so
successful in turning them around that he was able to sell the restaurants and begin
his own chain of hamburger restaurants, named after his daughter Melinda Lou
“Theyndy” Thomas.
By 1964 there theyre over 600 franchised Kentucky Fried Chicken locations in the
U.S., Canada, Mexico, England, and Jamaica. At the age of 73, Harland sold most
of Kentucky Fried Chicken to John Y. Brown and Jack Massey for two million
dollars. He retained the locations in Canada for himself and excluding England,
Florida, Utah, and Montana—because those theyre already sold to others.

While still its brand ambassador, he and his wife Claudia opened “The Colonel’s
Lady’s Dinner House” restaurant in Shelbyville, Kentucky, in 1968. Heublein tried
to stop the couple from opening the restaurant and in settling the dispute, Sanders
received $1 million in exchange for his promise to stop criticizing Kentucky Fried
Chicken’s food. Sanders was allotheyd to open his restaurant—renamed the "
Claudia Sanders Dinner House." This restaurant was the only non-Kentucky Fried
Chicken restaurant to serve a true version of Sander's original recipe. The
restaurant was sold in the 1970s.

Colonel Harland Sanders died in Louisville, Kentucky, in 1980 and his wife
Claudia died in 1997.

Kentucky Fried Chicken continues to be a theyll-known franchise brand, currently


ranking #41 on Entrepreneur's "Franchise 500" list, and with 4,074 locations
worldwide as of 2018.

VISION AND MISSION


Vision and mission of KFC include:

1) To be the leading integrated food service provider in ASEAN region


2) Delivering consistent quality products
3) Moving towards a more customer focused organization
4) Maximize profitability while maintaining customer loyalty
5) Deliver sustainable growth every year
6) Improve shareholder value

The KFCH principles are adapted from the Yum! Dynasty Model and are known as
theKFCH Dynasty Model.The KFCH Dynasty model is made up of five key
elements:
1 PASSION: To satisfy our customers every time they visit our restaurants and to
do it
better than our competitors
 KFC and Ayamas offer customers delicious food, good value, and customer-
focused teams
 Our associates in all our restaurants and integrated Strategic Business Units are
trained to
serve customers in the best possible way

2 FORMULA FOR SUCCESS: People capability comes first - satisfied customers


and
profitability follow
 If they have the right people, properly trained, then satisfied customers and
profitability will
follow
 They recognize that they are a people-dependent business
 There are about 26,000 people working for the KFCH
 Our people must be more motivated, better trained, and better resourced than the
competition. This will ensure that they have happy customers, which will lead to
more
profit.

3 HOW THEY LEAD: Know and drive the business, and build and align teams
 Take responsibility for and be passionate about exceeding customer needs
 Be committed to executing 100% CHAMPS at the restaurants. This means
ensuring that
 C : Cleanliness is maintained at our restaurants at all times
 H : They are hospitable and courteous at all times
 A : They always ensure that orders are taken accurately
 M : They maintain our restaurants to the best standards
 P : Our products are of the highest quality
 S : Our service is speedy
 Support restaurant teams with reliable services and tools
 Act like an owner
 Know and drive the business
 Understand the demands and issues affecting the business
 Demonstrate a sense of urgency to get results and improve performance
 Sort through complex issues and take appropriate action
 Continually raise the bar on your own and others' performance, via a "beat year
ago"
mentality
 Build and align teams
 Articulate strategy
 Continually build capability, selecting talented people and promptly addressing
non-
performers
 Communicate, communicate, communicate

4 HOW THEY WIN: Be the best at providing customers with branded restaurant
choice and
branded products
 Run great restaurants via
 Customer and sales mindset and behaviour
 People capability first
 High visibility leadership and coaching
 CHAMPS execution
 Processes and discipline around Profit and Loss ("P&L") and Balanced Scorecard
("BSC")
 Run most efficient integrated Strategic Business Units ("SBUs")
 Customer and sales mindset and behaviour
 People capability first
 High visibility leadership and coaching
 STAR audit execution
 Processes and discipline around P&L and BSC
 Differentiate the brands in everything they do
 Strategic brand analysis
 Brand identity system - identifying what they stand fort
 Drive explosive expansion
 Fully penetrate all profitable market segments
 Execute expansion and re-imaging plans and deliver on a timely basis
 Strengthen unit economics and organization capability
 Continuously explore new and innovative business channels

5 HOW THEY WORK TOGETHER: Our leadership principles


 Customer Focus - We listen and respond to the voice of the customer
 Belief in people - We believe in people, trust positive intentions, encourage ideas
from
everyone and actively develop a workforce that is diverse in style and background
 Recognition - We find reasons to celebrate the achievements of others, and have
fun doing it
 Coaching and Support - We coach and support each other
 Accountability - We do what we say, we are accountable
 Excellence - We take pride in our work and have a passion for excellence
 Positive Energy - We execute with positive energy and intensity
 Teamwork - We practice team together, team apart

MARKET SHARE, GROWTH AND BRAND VALUATION

Like usual, KFC was a “development machine,” in the first quarter of fiscal 2019,
as YUM! Brands chief operating officer David Gibbs described it. The company
opened 372 new restaurants in 46 countries during the quarter, bringing its global
footprint to 22,886 locations (4,062 in the U.S.) with 6 percent net new unit
growth. The vast majority debuted in international markets—363—and KFC also
closed 107 locations (21 in the U.S. versus nine openings).

While these figures are pretty standard for KFC lately, its sales performance sailed
expectations. The brand turned in its best growth in three years to pace YUM!’s Q1
results.

KFC reported systemwide same-store sales growth of 5 percent, year-over-year,


building off 2018’s 2 percent rise. System sales jumped 11 percent in China, which
accounts for 27 percent of KFC’s total mix. In the U.S.—17 percent—system sales
bumped 2 percent. CEO Greg Creed also called out Japan and Indonesia, which
reported double-digit comps at 15 and 12 percent, respectively.

But focusing on the U.S., a couple of themes emerged. KFC’s value through
abundance drove transactions, Creed said. The company’s introduction of a la carte
menu items, like the 2 for $3 Chicken Littles, allowed customers to build their own
meals. KFC then followed with new options in its $5 Fill Up and $20 Family Meal
Offerings.

The latter note plays into another sales driver gaining traction across KFC’s U.S.
business. YUM! invested in two major operational levers—new menuboard
designs and delivery through Grubhub, which the company holds a $200 million
stake in.

There are currently 2,200 KFCs offering delivery and 3,200 units available for
click-and-collect on the Grubhub marketplace. Creed said a nationwide launch is
coming later this year.

KFC has seen early success, he added, due to it strength in the dinner daypart,
which is where delivery tends to over-index in most markets. “I always jokingly
said, I think the Colonel 60 years ago invested the bucket realizing that one day
we’d be delivery it, because it’s the perfect delivery vehicle,” Creed said.

KFC has seen heavy orders around dinner, big packs, and bone-in chicken.

In-store, KFC closed out Q1 with more than 1,500 “American Showman” designs
in the U.S. The package is known for its red color blocking, barn-like materials,
heritage accents, and test elements, like an open “kitchen theater,” retail stores, and
delivery call-outs. KFC remodeled 65 units in the period as it strives for positive
net unit growth in the U.S.

SERVICE PRODUCTS OFFERED BY KFC

Currently, KFC has 9 product lines, namely:

1) The chicken
2) Boxed meals
3) Bucket meals
4) Sandwiches and toasted line
5) Bowl snack
6) Fixins
7) Salads
8) Krushers
9) Desert and breakfast

1. Original Recipe Chicken


It’s the original signature recipe that makes customers come back to KFC. It
is a world famous recipe that never changes irrespective of the location.
KFC also prides itself in serving freshly made chicken, where the chicken is
served fresh from the pan.
2. Sandwiches and toasted lines
KFC’s sandwiches are all made of chicken as a main filling. Some examples
are the Zingers and the spicy chicken fillet.
3. Boxed meals
KFC serves their dishes sometimes in a small box so as to ensure
deliverability and easy access for customers. Example: BBQ chicken burger.

Products of KFC are rated from 90 to 1200, and people can enjoy all the added
value meals that were included in it.

7P’s of KFC

1) Product:
Core product offered is pressure fried chicken. Chicken burgers, wraps,
variety of finger foods are also popular. Chicken popcorn and chicken
nuggets have recently been introduced this decade and have become very
popular. Very recently, a flaming crunch chicken has been launched. In
addition to these, many side dishes exist like French Fries, rolls, salads, and
soft drinks.
2) Price:
KFC’s pricing is competitive. It ranges from low priced products like the
zinger which come for cheap to their chicken which is comparatively
expensive.
3) Place:
It has over 500 outlets in over 100 cities. Distribution is based on franchisee
and company run outlets. Their products are also delivered through online
media.
4) Promotion:
KFC does promotional activities by offering add ons to the existing menu,
gift coupons, T-shirts, Kids meal, etc. Online and television advertising is
their predominant way, though, to promote their product.
5) People:
The staff working in outlets is trained by the company itself when they join
the company. They are provided with certain guidelines on how to interact
with customers and on staff behavior to ensure they remain at their best and
customers remain loyal to the company.
6) Process:
The process starts when the customers visit any outlet. It also includes the
customers ordering their products online. They ensure an easy and
convenient process so as to ensure that the customers leave satisfied.
7) Physical evidence:
This refers to the physical environment which the customers visit. The
interiors are made according to certain guidelines issued by the company.
This also helps create a positive influence on the customers, thereby
ensuring customer satisfaction. Recently, they have also introduced
technology in certain locations to ensure quicker procedures, and lessen the
waiting. This is also helping increase their customer loyalty and customer
satisfaction.
CHOSEN TARGET MARKET OF KFC

Segmentation based on ethnic groups plays important role, for example in


Australia KFC has segmented its market on ethnic group basis and have introduced
Halal Food for the Muslim community. In Bankstown and nearby Punchbowl,
which have very high Arabic-speaking Muslim populations KFC has offered Halal
Foods accredited by the Islamic Council of New South Wales. In this way KFC
sales has increased by covering the Muslim population segment.

Under demographic segmentation, KFC focus on the income bracket of consumers.


Its products are mostly aimed at the well off with higher disposable income to
spend on premium fast foods. Although KFC do not segregate taste by gender they
do tend to highlight the image of fried chicken by featuring couples in all their
international adverts. KFC tend to link their products directly either gender in
fulfilling the inner desires. KFC has also segmented the children group by
introducing the Zinger Junior. To be attracted to eating super quality and tasted
fried chicken products, people need to be part of a particular lifestyle segment.
They should be among those who enjoy the luxury and indulgence connected with
the brand. KFC has been portrayed to be a sign of individual taste and for this
reason; the brand creates an image to be the number one fried chicken in the minds
of consumers. 

KFC has narrowed down its business to cater to specifically two main target
markets,

1. Well off, taste and quality seeking adults who are normally brand conscious,
innovators & trend followers

2. Health conscious, young adults who are interested in fast foods but prefer
natural ingredients and low fat substitutes.

With the identification of two target segments but profitable segments KFC is
practicing a niche market strategy. They have been reasonably successful in
identifying and catering to this segment and this can be determined by their growth
from USA to its global presence all over the world.
KFC’s major competitors in the food chain market are Mcdonald’s, Domino’s,
Wendy’s, Pizza Hut, Taco Bell, Subway, BBQ king and Burger King.

KFC has to improve on its products being more healthy, but it does offer a wide
range of products and has recently introduced vegetarian products so as to enable a
wider customer base. Although their target market is still non-vegetarians, in
countries like India where a wide range of vegetarians exist they have introduced
appropriate products to serve them.
SERVSUCTION MODEL OF KFC

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, contact personnel or service provider, other customers. And the
last one organizations and system is invisible to the customers, but it impact to the
customer’s experience. 3. 1 The Servicescape “The term servicescape refers to the
use of physical evidence to design service environments. Due to the intangibility of
services, customers often have trouble evaluating the quality of service objectively.

As a result, consumers rely on the physical evidence that surrounds the service to
help them from their evaluations. Hence, the servicescape consists of ambient
conditions such as the color, music, scent, layout, lighting, and design in a physical
environment. The effective management of servicescape is particularly important
to KFC. Due to the intangibility of services, consumers lack objectives sources of
information when forming evaluations. As a result, customers often look to the
physical evidence that surrounds the service when forming evaluation.

KFC is predominantly a location based chain, and thus, hardly has a technical core.
However, apps like Zomato, Swiggy enable delivery based system, and their
technical core is therefore useful to KFC. Moreover, KFC is moving towards a
more digital service in countries like Japan, therefore making service quicker.

Location: KFC has widespread centers throughout the country of India. It is mostly
in urban areas, where their target market exists, rather than rural areas. It is also
opening in office centers and student complexes, where more of their target market
exists. It is usually in accessible areas for urbanites

The client needs to step up to the order place and choose the food, the menu of the
food customers will be able to see on the board behind the cashier; after the client
choose the food he should order it to the cashier; and while making a payment the
food within 30 seconds will be prepared, after this the client can take his order. All
these transactions are made at the same place. The line in queue goes so fast so
customers will not stay in a queue long time and it means that customers while
evaluating physical evidence will not spoil their performance about KFC.

Exterior and Interior Design For all their outlets Kentucky Fried Chicken is always
using same exterior and interior design. For exterior design they use bright red and
white color, so when customers see red and white building they know that it is
KFC. Furthermore their mascot Colonel Harland Sanders is also present in outside
each of their restaurant. In figure 3 illustrate the exterior design of KFC in Endah
Parade, and from this picture in their sign board you will be able to see their
mascot.

The walls of KFC are made using glass not bricks and stone. This is an advantage
to the customers because as they are passing by KFC they can see how the staff is
serving the customers. The interior design of KFC is also same as in any others
their outlets. They use same color as outside bright red and white. Moreover, the
uniform of KFC staff is standardized in all the countries.

They have two type of uniform, all cleaners and cashiers are wearing red T-shirts
with KFC logo and black cap. The managers of KFC more office form, shirt and
tie.

Contact Personnel and Service Providers: Contact personnel and service providers
are another important aspect of the customer’s experience. Contact personnel are
employees other than primary providers that interact with consumer. Service
providers are the primary provider of core service, such as dentist, physician or
instructor. Employees Employees at KFC restaurant are very friendly, polite and
accommodating. Cashiers are the first employee that customers encounter when
coming to KFC, it means that cashier should give to their customers a good mood.

When customers ordering food cashiers are always smiling, and always trying to
find out the way on how to communicate with customers. For example when a
foreign customer does not know local language, the waiters will do everything to
understand what customer wants. Apart from that, other employees at KFC are
briefly interacting with customers. For example cleaners who keep restaurant
clean. It is very important to keep restaurant clean, such as tables, chairs and floor,
because hygiene in any restaurants should stand in a first place.

Therefore, cleaners doing a big work, because they should always keep restaurant
clean, if tables will be dirty customers will not find a place on where to sit, and
next time they may not come to this restaurant. Apart from that, they also
sometimes interact with customers, like if the customer does not know where to
find straw or ketchup or where is washbasin, in KFC he can ask only cleaners, so it
means that they should be friendly and polite with the customers, and with smiling
in face show where they can find it.

Last but not least, employees play an important role in any service provider
companies, and in order to make customers more satisfied companies must provide
training for their employee; and KFC provides training for their employees every
two month.

Mangers: Managers are the people who guide the spirit of KFC. The managers of
KFC shape the character and atmosphere in the restaurant. They are coaching
employees to achieve excellence. Managers need to make a great team from the
employees, because this will makes better customer service, and also it will lead in
increasing sales and profitability, which is one of the main goals. Managers of
KFC are not only focused on commercial, but also they are creative in the way that
they solve sometimes-conflicting challenges of managing budgets, driving sales
and growing teams. Managers are the driving force behind ensuring restaurant
achieves the level of operational excellence that meets the high standards KFC
strives for, and that customers deserve.

CORE PRODUCT AND SUPPLEMENTARY SERVICES


Core product of KFC is obviously the fried chicken with the original recipe.
Additionally, it provides supplementary services like:

 Information: Customers can get to know more information about KFC


products and prices. Source can be the internet, food delivery apps, flyers or
a simple phone call.
 Order taking: Once customer is ready to order food, they do it via telephone,
apps or through the counter.
 Billing: Once order is done, billing is provided by KFC through any of the
above methods.
 Hospitality: KFC has proper seating arrangements for all their customers. It
makes sure to provide ample seating so that no customer is left unseated.

Comparing with their competitors, all companies in the competitive food chain
market provide such services. KFC lack a special application like McDonalds,
Pizza Hut or Dominos through which they can order. Customers have to do it via
Zomato or Swiggy, which has a large delivery charge attached to it. Prices of KFC
tend to be on the higher side, whereas companies like Dominos are giving their
food for very cheap compared to competitors. All food chain companies have
proper seating in their locations. Additionally, KFC is moving towards a more
technological setup which the other companies have not begun to do, so KFC is
leading that race. KFC always serves fresh food in most locations, which other
companies lack.
SERVICE BLUEPRINT OF KFC

DIMENSIONS OF SERVICE
Servqual is the difference between customer perception and customer expectation.

1. Tangibility- KFC has modern equipment, visually appealing facilities, and


employees with a neat and professional appearance.
2. Reliability- Provides service as promised. Customer service problems are
handled well. KFC employees perform tasks right in the first go, as they are
well trained to do so. Services are provided in a timely manner, although in
case of long queues, there might be delays. The record maintaining at KFC
is error-free.
3. Responsiveness-KFC employees are very proactive and tell you exactly how
much times will it take for them to provide the service, plus minus a few
minutes here and there. Prompt service is provided by them. Employees are
very helpful and never too busy to respond to requests.
4. Assurance- Employee behaviour instils confidence. Transactions are secure,
and various payment methods are provided to the customers for their
satisfaction. Employees are courteous and trustable, and have the
prerequisite knowledge to answer any questions.
5. Empathy- KFC has very convenient opening and closing hours. Employees
of KFC provide personal attention in most cases, but if the restaurant is
filled it is difficult to do so. KFC could provide healthier food, keeping in
mind the interest of their customers. Employees of KFC can do better to
understand the needs of their customers.

KEY MEASURES TAKEN BY KFC

Kentucky Fried Chicken’s quality management identifies this basic difference by


utilizing two complementary programs for quantifying quantity :

The quality service and cleanliness (QSC) program for judging the quality of
service results from the prospective of a patron.

The operations facility review (OFR) program for estimating an establishment’s


process implementation performance against Kentucky fried Chicken’s process
specifications.

The outcome of this two quality measurement programs are edited in ” Today’s
Kentucky Fried Chicken restaurant quality period report ” a quarterly report for
senior management at Kentucky Fried Chicken.

Kentucky Fried Chicken often uses customer – and market – oriented surveys to
manage its service quality in order to understand customer’s expectations and to
access the company’s performance against its competitors. The outcome of these
surveys are also edited in the quarterly quality report.

In order to achieve its goal, Kentucky Fried Chicken hires a professional


interviewing service to surveys consumers on their impressions of product and
service quality. A consulting firm is also periodically hired to recognize important
service qualities and uses the understanding of consumer expectations in designing
and continually updating its quality assessment schemes.

Kentucky Fried Chicken monitor customer complaints via complaint cards


available at all Kentucky Fried Chicken outlets and also through letters and phone
calls from consumers. Kentucky Fried Chicken also record the number and the
types of complaints different restaurants receive.
Kentucky Fried Chicken uses market tracker surveys to assess its performance on
important customer service attributes namely, speed of service, mispacks, courtesy,
product quality and value for money spent compared to that of its competitions
( such as McDonald’s and Wendy’s )

Kentucky Fried Chicken’s quality management program also stresses continuous


improvement of processes, employee empowerment and training of staff to use
quality management tools and methods. Its quarterly quality report plays an
important part in Kentucky fried Chicken’s quality management program.
Providing data on customer expected needs and Kentucky Fried Chicken’s
performance permit management to take swift and immediate action.

Quality, Service, Cleanliness (QSC) Program

Kentucky Fried Chicken carried out the QSC program in 1977 and it was designed
to assess and evaluate quality at each Kentucky Fried Chicken outlet, company
owned or franchised, from the customer’s view – point. ” Mystery Shoppers ”
independent individuals contracted by Kentucky Fried Chicken, assess the quality,
service and cleanliness of each outlet. Mystery shoppers conduct a QSC
assessment of each restaurant twice a month. They are well trained to use the
standard QSC form so that they carry out their task in an objective, accurate and
and consistent manner. To reflect the ever – changing customer expectations,
Kentucky Fried Chicken often revises and updates the form, however, outlet
general managers utilize a shortened version of the same form ” QSC alert form “,
out daily self – evaluations of their restaurants. Through this methods, managers
are able to take immediate improvement actions, such as instructing and helping
employees to carry out their jobs correctly. It also aids managers to infuse an
awareness of patrons expectations among restaurant staff.

Operation Facility Review

Consumers anticipate consistent and high quality products and services in all
Kentucky Fried Chicken outlets. Therefore, operational excellence is of paramount
importance to Kentucky Fried Chicken’s success. The objective of the operations
facility review (OFR) is to aid Kentucky Fried Chicken to attain national
consistency, high operating standards and performance in all its outlets through the
utilization of a standardized evaluation program. The OFR assessment program
measures a restaurant’s performance against Kentucky Fried Chicken’s Operation
standards.
The OFR program is very similar to the QSC program except that the OFR
evaluators are Kentucky Fried Chicken staff. The OFR evaluators are strictly
trained by Kentucky Fried Chicken to ensure that they carry out all assessment in
an objective, accurate and consistent way. Restaurant general managers are
required to complete OFR evaluations for their own outlets at least once a week.
Running training programs for restaurant staff and maintaining facilities,
equipment and premises following Kentucky Fried Chicken’s operating standards
is mandatory of managers.

Kentucky Fried Chicken (KFC) Corporation, uses a sophisticated program to


manage the quality of service it offers to its patrons. In the last quarter of 1989, the
south central division of Kentucky Fried Chicken launched a test program in four
Oklahoma City restaurants to improve the speed of service at its drive – through
-window operation. It was a huge success and the restaurant cut service time by
more than half while improving labor productivity. They also successfully
outperformed other restaurants in the arena of profits, sales growth, and increase in
customer transactions. The improved processes in the test outlets have served as
benchmarks for other Kentucky Fried Chicken restaurants targeting for continuous
process improvement, while the decreased service time now serves as the revised
specification in Kentucky Fried Chicken quality restaurants and management
program.

RECOMMENDATIONS FOR KFC

1. Provide healthier food- KFC provides a lot of junk food. These days,
consumers are moving towards healthy food, and to survive, KFC needs to
move towards the same, otherwise companies like Subway will take over.
2. Provide more sitting facilities- During rush hours, KFC facilities tend to be
overwhelmed. It is of paramount importance to KFC to introduce more
sitting facilities so as to ensure customers do not stay standing with their
orders. KFC can also introduce a more efficient takeaway dining service, so
that customers can take small packages to eat on their way instead of large
buckets.
3. Website optimisation is essential for KFC as it is a marketing tactic and it
would help to develop the connection with the public. The website of KFC
would be more visible to the public as it would appear higher in the search
engine. This would help to increase the popularity of the brand. 
4. The perception of the customers about the new launches and the new outlets
would be acquired through a survey. The customers would be surveyed
online in social media or through websites to know about their preferences
for the products.

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