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Group 4 Team 6: Area of Benchmarking Kpi Mcdonald'S KFC

KFC is the second largest restaurant chain globally after McDonald's. While they target similar customers, McDonald's generates more annual revenue but KFC has a higher market share due to asset and liability differences. McDonald's offers higher employee pay and satisfaction. Key areas of comparison between the companies include customer satisfaction, financial performance, employee management, service efficiency, and innovation. The document provides data on various KPIs in these areas and recommends ways McDonald's can improve aspects of its business and operations.

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1K views1 page

Group 4 Team 6: Area of Benchmarking Kpi Mcdonald'S KFC

KFC is the second largest restaurant chain globally after McDonald's. While they target similar customers, McDonald's generates more annual revenue but KFC has a higher market share due to asset and liability differences. McDonald's offers higher employee pay and satisfaction. Key areas of comparison between the companies include customer satisfaction, financial performance, employee management, service efficiency, and innovation. The document provides data on various KPIs in these areas and recommends ways McDonald's can improve aspects of its business and operations.

Uploaded by

bala pandian
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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BACKGROUND EARLY GAPS AND RESULTS IDENTIFIED

• KFC is the second-largest restaurant chain (as measured by sales) in the world • KFC focuses more on increasing the level of customer interaction. The percentage of
after McDonald’s. customer greeting at McDonald’s is low and hence the net promoter score of the
• McDonald’s and KFC cater the same marketplace and target similar set of company is comparatively less.
customers which has a direct impact on the sales and profits of both the companies. • McDonald’s generate more revenue annually but due to the current assets and
• KFC increased the popularity of chicken in the fast food industry, expanding the liabilities of the companies the market shares of KFC are higher.
traditional market which was dominated by hamburger. • McDonald’s offer higher income to employees and also provides higher employee
satisfaction.
AREAS OF BENCHMARKING AND KPIs • Considering the number of retail outlets of McDonald’s, the percentage of outlets
AREA OF BENCHMARKING KPI McDonald’s KFC delivering food to the customers is low. They aim to increase operational efficiency
and hence spend relatively less per customer compared to KFC.
CSAT (in %) 69% 77%

Net promoter Score (NPS) ( -100 to 100) -8 14


VISUAL PANELS
Customer Satisfaction
Speed of Service ( in seconds) 273.29 sec 218.96 sec

Customer Greeting 78.2% 84.9%

Brand recognition through Social Media (people) 21,41,538 14,14,849

Gross Profit 51.30% 30.22%

Operating Income 40.84% 10.01%


Net Income Before Taxes 37.17% 10.18%
Net Income 28.18% 6.85%
Financial Benchmarking 66.33%
Current Assets 12.35%

Non-Current Assets 87.65% 33.64%


Liabilities 119.07% 43.66%
Stockholder’s Equity 19.07% 56.34%

Number of Employees 210,000 90,000

Net Income amount ( in millions) $5,924 $716.78

Employee Management Stress levels High Relatively low


METHODS USED
Net Income growth percent previous Year (in %) 14% 1%
METHOD - 1 METHOD - 2 METHOD - 3
Net Income Per Employee $35.44 $26.4
Documents and Company Referring to surveys and
Total number of restaurants 37,855 22,621 Visual or Textual Analysis
records case studies
Average sales per Labour hour $22.92 $25.40

Average sales per sq. Feet $637 $442


Level of Service Efficiency RECOMMENDATIONS
Average spend per customer $5 $6.5 • The employees of McDonald’s should try to increase customer interaction by increasing
the percentage of greeting which would lead to higher customer satisfaction.
Percentage of stores that offer delivery 34.2% 33.3% • They should invest on increasing the number of delivery outlets to increase the
Customisation of menu Very High Moderate efficiency of the service provided by them.
• They should also invest on training their employee with the new technologies to reduce
Investment on technology Relatively High Moderate the amount of stress levels.
Innovation and New product Development
Ethical Score ( out of 20) 1.5 2
• McDonald’s should focus on increasing their ethical score to cater customers from all
regions of the world.
Average calorie per item 294 Kcal 406 Kcal GROUP 4 TEAM 6

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