KFC - Operations

Operations

KFC is headquartered in Louisville, Kentucky, United States in a building on 1441 Gardiner Lane known colloquially as "The White House" due to its resemblance to the Washington D.C. building. The company moved into the $3.7 million building in July 1970 (equal to $22,142,931 today). The building is described as "an antebellum-style mansion...complete with six three-story-high columns and a flagpole." It is incorporated in the US state of Delaware. KFC is a subsidiary of Yum! Brands, one of the largest restaurant companies in the world. In 2011 it earned an estimated $9.2 billion in sales revenue. As of 2011, there were over 17,000 KFC outlets in 105 countries and territories around the world, although almost half of the total are in the United States and China. According to Bloomberg Businessweek in 2012,

the distinction of being both the best performer and the biggest headache in the family. In emerging markets such as China, India, and Africa, it’s a muscular player bursting with optimism, innovation, and growth potential. China was home to 3,701 KFC outlets at the end of last year; McDonald’s had 1,464. In Africa, KFC plans to enter seven new countries this year (including Uganda, Zimbabwe, and the Democratic Republic of the Congo) and expects to generate $2 billion in sales from 1,200 KFCs across the continent by 2014. In the U.S., which is still KFC’s largest market with 4,780 units, it has closed restaurants and lost share to rivals such as Chick-fil-A and Popeyes. The goal there has been less to rebuild than to “refranchise,” reducing the percentage of company-owned KFCs from 35 percent about a decade ago to 5 percent by the end of this year.

KFC adapts its menu internationally to suit regional tastes. There are over 300 KFC menu items worldwide, from a chicken pot pie in the United States to a salmon burger in Japan. In Asia there is a preference for spicy foods, such as the Zinger chicken burger. KFC's primary product is pressure-fried pieces of chicken made with the "Original Recipe". The company also sell chicken burgers, wraps and a variety of finger foods, including chicken strips, wings, nuggets, and popcorn chicken. Popcorn chicken consists of small pieces of marinated, breaded and fried chicken. Grilled chicken products are available in 4,000 outlets. Side dishes vary regionally, but often include coleslaw, french fries or potato wedges, barbecue baked beans, corn on the cob and American biscuits. Because of the company's previous relationship with PepsiCo, Yum! Brands has a lifetime drinks supply contract to supply Pepsi products. An own brand dessert is the soft serve ice cream product known as "The Avalanche". An own brand drink is the Krusher/Krushem which are frozen beverages containing "real bits", available in 3,700 outlets. In 2012 the KFC breakfast menu began to be rolled out internationally.