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Kentucky Fried Chicken (KFC) SWOT and PESTLE Analysis

ID : 521427853| Feb 2023| 22 pages

COMPANY PROFILE -Kentucky Fried Chicken (KFC)

Business Sector :Restaurant Chain

Operating Geography :United States, North America, Global

About Kentucky Fried Chicken (KFC) :

A subsidiary of the Yum! Food Brands and the second largest fast-food chain in the world, KFC is an American restaurant chain known worldwide for its 11 herbs and spices fried chicken recipe. Founded on 24 September 1952 in Kentucky, United States by Colonel Sanders and Pete Harman, it now has more than 25,000 outlets spread across 150 countries and more than 80,000 employees as of early 2023. Colonel Sanders developed the recipe from his roadside restaurant during the Great Depression and saw the potential of franchising the restaurant. It soon became even more popular than the already prominent hamburger in American fast-food cuisine. Sanders built himself an image as a colonel, and the image used of him on his advertisements became an iconic part of American history. After the ownership changed hands several times, it was finally owned and controlled by Yum! Brands, a part of the PepsiCo conglomerate. Apart from its original product, the menu of KFC has expanded to include all kinds of filets sandwiches and wraps, salads and side dishes, fries and coleslaw, desserts and soft drinks.

The mission and vision of KFC is to “sell food in a fast, friendly environment that appeals to pride conscious, health-minded consumers”. The Unique Selling Proposition of KFC is the recipe of their fried chicken, because nobody makes it like that. It is this unique taste that consumers crave and that is what has helped the brand grow exponentially.

Kentucky Fried Chicken (KFC) Revenue :


$2,793 million - FY ending 31st Dec 2021 (y-o-y growth 17%)
$2,272 million - FY ending 31st Dec 2020

Competitive Analysis of Kentucky Fried Chicken (KFC)

SWOT
PESTLE
The SWOT analysis for KFC is presented below in a matrix format followed by a detailed analysis:
StrengthsWeaknesses
1. World’s second largest chicken restaurant chain in terms of sales.
2. Global presence across 145 countries with more than 25,000 restaurants
3. Trade secret of 11 herbs and spices give it competitive advantage
4. Innovative and diversified product offerings with implementation of local flavours
5. Strong presence across digital channels contributing to growth
1. Large dependency on franchise business (99%) model may affect operations and growth
2. Involvement in scandals can hamper the reputation of the company
OpportunitiesThreats
1. Boost presence in the international markets through expansion
2. Enter into new product categories through menu diversification
3. Implementation of smart restaurants by leveraging digital media
1. Increase in covid cases in some part of the world can affect the operation of restaurants
2. Economic downturn can adversely impact the business of the company
3. Rising competition from local and international brands can affect the company
4. The company continues to face supply chain issues with its suppliers
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Kentucky Fried Chicken (KFC)

Strength

1. World’s second largest chicken restaurant chain in terms of sales: After McDonald's, KFC is the second-largest restaurant chain in the world, with 26,934 outlets in more than 145 countries. KFC is a significant participant in the world of fast-food fried chicken with systemwide sales in the United States of more than $5.1 billion. With the introduction of the KFC app and quick pick-up online ordering in 2021, ordering KFC became quicker and simpler than before. Since 1952, well-known KFC products like its bucket meals have given families affordable dinner options. The brand continues to open new restaurants, and in 2021 KFC had net-new unit growth for the first time in 17 years.

2. Global presence across 145 countries with more than 25,000 restaurants: KFC is a well-known international chicken restaurant brand with a long history of success and innovation. It is a subsidiary of Yum! Brands, Inc. Colonel Harland Sanders, a cook who invented a mouth-watering recipe more than 75 years ago, began it all by scratching a list of top-secret herbs and spices into the back of his kitchen door. In more than 25,000 locations throughout 145 countries and territories, KFC still adheres to his recipe for success, with actual chefs’ hand-breading and freshly preparing the delicious chicken.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

SWOT & PESTLE (combined)
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References used in Kentucky Fried Chicken (KFC) SWOT & PESTLE Analysis Report

1. Annual Report - https://s2.q4cdn.com/890585342/files/doc_financials/2021/ar/2021-annual-report.pdf
2. 5 Most Powerful Fried Chicken Chains Right Now - https://www.eatthis.com/news-most-powerful-fried-chicken-chains/
3. Website - https://global.kfc.com/
4. What is the KFC secret recipe? The Colonel uses 11 herbs and spices to create the perfect fried chicken - https://twistedfood.co.uk/articles/features/kfc-secret-recipe-colonel-herbs-spices
5. How KFC Leverages Local Flavors Worldwide Through Localization - https://blog.ititranslates.com/2019/09/24/how-kfc-leverages-local-flavors-worldwide-through-localization/
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2024). Kentucky Fried Chicken (KFC) SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/kfc/ [Accessed 12 Jul, 2024].

In-text: (SWOT & PESTLE.com, 2024)

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