SWOT Analysis of KFC Cheshnotes

SWOT Analysis of KFC Cheshnotes


KFC is a world-renowned hen model. Originally founded by Colonel Sanders, the corporate is now a world-renowned QSR model operating in 131 nations. The Yum brands, which also have Taco Bell and Pizza Hut, are owned by KFC and at the moment are primarily run by franchise clients. By the top of 2017, there have been about 21.5 thousand eating places on the earth. About 97% of all restaurants have been used by franchise clients. In addition to baked and uncooked hen, the company additionally serves objects and by-products that correspond to native tastes and tastes.

KFC is headquartered in Plano, Texas. KFC can also be the most important supply of income for the Yum brand! In 2017, KFC alone acquired $ three.1 billion in income from $ 5.9 billion. Yum Manufacturers' internet sales declined from 2016 to 2017, mainly as a consequence of resale. The resale resulted in an estimated $ 1.1 billion loss in 2017. Nevertheless, KFC is a very fashionable brand. It’s the leading QSR brand in the hen class. Learn the KFC SWOT evaluation, which highlights strengths, weaknesses, alternatives and threats.


Brand fairness: –

Model capital is KFC's biggest power. In QSR business, model capital is usually a major asset that results in larger gross sales and income. Clients need not solely high quality meals but in addition a pleasant buyer expertise and good service. KFC's efficiency has been nice in most of these features. The model is understood around the globe for scrumptious hen. KFC hen flavor is the primary cause for its reputation and excessive degree gross sales. Along with high quality food, advertising and customer service have additionally helped the model to get larger capital and popularity. The QSR business is in a very aggressive position, and in this state of affairs, building the equity of the brand is essential to attract and retain clients. KFC has maintained a robust concentrate on model equity, which has led to giant sales and income.

International Chain: –

KFC is a worldwide QSR chain. It operates in 131 nations, the place its eating places serve both fried and uncooked hen and numerous local flavors and by-products. Its quantity of eating places all over the world has grown to around 21.5 thousand, of which about 20.eight thousand are franchise clients. A big part of the company's turnover comes from emerging markets, which account for about 60% of its income and quantity of models (quantity of eating places). The model continues to internationalize and internationalize. It plans to keep the number of restaurants owned by the corporate less than one thousand. International presence is vital and has a big quantity of retailers, and the corporate has succeeded in acquiring high-level gross sales and income.

Meals Quality: –

Beforehand, KFC faced a number of complaints about food quality and its focus in this area has grown. It has a big buyer base, which signifies that KFC trusts a very giant number of clients around the globe. In addition to accountable procurement, it has additionally targeted on hygienic storage and other features of food high quality both within the provide chain and within shops. Good food quality is important for the QSR model. It’s because clients are nicely aware, however at the moment are increasingly more well being acutely aware and simply want high quality food. They are eager about figuring out how and where meals is procured, how it’s cooked and saved inside stores. QSR brands must keep a better degree of transparency and, in addition to buyer preferences, food high quality can also be their main objective. KFC has managed its supply chain nicely. Though a couple of issues have emerged in recent times, the brand has been capable of efficiently handle food quality to an excellent extent.

Buyer Service: –

Customer support is now increasingly essential for business. In addition to merchandise / providers, clients are additionally cautious about what the model gives. That's why not solely KFC but in addition its fundamental rivals, together with leading QSR manufacturers corresponding to McDonalds and Burger King, are focusing on enhancing buyer experience by offering wonderful customer support. KFC has additionally maintained a high degree of customer support. In addition to the good-looking furnishings in the restaurants, it has educated its employees to offer a very good service. The overall result is impressive sales and income because of great reputation.

Improvements: –

Innovation has grow to be extra essential in the QSR business, and never only is know-how used for better buyer expertise, advertising, sales and supply, however the innovation of the menu has also develop into essential for buyer retention. KFC's mother or father company, Yum, spent about $ 22 million in R&D in 2017. In addition to different points, the model is investing in digital know-how and advertising. It has additionally significantly improved its menu, making it extra versatile and engaging.


– Excessive Calorie Menu –

Right now's clients are high quality and well being acutely aware. They don't simply need high quality meals, however low calorie and hygienic food. Subsequently, manufacturers should use lots to take care of transparency in the provide chain and hygienic storage. Nevertheless, KFC is a model of hen recipes and while it could keep transparency, controlling calories is probably the most troublesome half. The result is that a large number of clients weigh on low-calorie meals. This could result in a reduction in KFC gross sales and income.

Supply Chain and Logistics Issues: –

QSR brand administration, primarily utilized by franchise clients, could be troublesome. Along with provide chain and business administration points, different points may arise on occasion. Lately, KFC was faced with a robust hen within the UK resulting from problems within the provide chain and logistics. In addition, KFC must be sure that suppliers and logistics companions contribute properly to technological innovation in the supply chain and digitalisation. Otherwise, provide chain and logistics issues may cause great losses and injury status.


Advertising Innovation –

Advertising is a key focus for QSR manufacturers because of rising competition within the business. Along with a number of international QSR manufacturers, a number of local manufacturers also compete for market share. In consequence, corporations have to take a position quite a bit in advertising. In 2017, KFC's mother or father company Yum invests approximately $ 245 million in advertising. Nevertheless, advertising has developed rather a lot, however the brand has an excellent probability to raised handle the client experience and gives. Several of the newest applied sciences, corresponding to AI, assist manufacturers handle their advertising technique higher. KFC should spend money on the newest technologies and promotional campaigns and consumer participation.

Customer Expertise: –

Buyer expertise is now an integral part of model advertising strategy. Even for QSR manufacturers, it has grow to be as necessary as the core product. KFC may also concentrate on buyer expertise and spend money on know-how to make the client experience extra numerous and higher. This not solely increases demand and recognition, but in addition helps to keep customer info and brand progress quicker. In addition to AI and digital know-how, more buyer experience and buyer dedication can be utilized.

Logistics Management: –

Technological advances have introduced many new opportunities for QSR for provide chain and logistics administration. Lately, KFC in the UK suffered from a critical scarcity of hen on account of a scarcity of good logistics management. KFC should use the newest know-how to manage the availability chain and logistics. Investing in these areas will ensure a steady supply of high-quality raw materials and help KFC work extra effectively.


Competitiveness: –

Competition in the QSR business is growing, leading to greater strain on KFC's advertising and gross sales. In addition to rising working costs, heavy aggressive strain also can result in decrease sales and revenue. Not only within the US, but in addition in rising markets, KFC has to compete with its robust rivals.

Regulatory Threats:

Regulatory pressures in the QSR business have increased and compliance prices can improve model utilization prices. Aside from well being problems, there are different areas where the strain on regulation and laws is greater. QSR brands need to introduce larger transparency when they’re already beneath strain as a result of a posh authorized model, reminiscent of other corporations.

Rising working costs: –

KFC's working prices have risen for a number of reasons, reminiscent of rising raw material and labor prices. Though the company has resold a number of eating places, its operating prices have remained high. Its operating prices amounted to roughly $ 3 billion in 2017. The company has halved the quantity of its owned eating places from 2016 to 2017. The quantity of restaurants owned by the corporate has fallen to 668 from over 1,400. the price is simply about 1.5 billion. In addition to raw supplies and labor costs, advertising and elevated competitors additionally improve working prices.

Monetary turbulences: –

Financial fluctuations also harmed the company and its income. Trade fee fluctuations and enormous markets brought on by economic uncertainties may cause sales losses and scale back income. The stronger greenback is already affecting the income of worldwide QSR manufacturers.


KFC is a number one QSR model with a worldwide presence. Kum, owned by Yum manufacturers, was founded by Colonel Sanders. The model has grown right into a renowned QSR brand in 131 nations. KFC is Yumi's main supply of revenue. Its presence in emerging economies has increased, accounting for about 60% of model turnover. One of KFC's most necessary things is that about 97% of its eating places are used by franchise clients. There at the moment are over 21,000 KFC eating places worldwide. Although KFC is a robust brand, it additionally has several challenges. The corporate has fierce competition from competing QSR brands. Rising working costs and regulatory pressures also make the state of affairs harder. To seek out quicker progress, KFC needs to spend money on advertising and the newest technologies to raised manage the client experience.

Sources: –

Hen Lack in KFC Eating places within the UK

Yum Brand Annual Report 2017