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Global Brands. KFC Founded 50 years ago as Kentucky Fried Chicken Today has ~ 5,000 U.S. restaurants; ~ 6,000 abroad 158 franchises in Indonesia, world’s largest Muslim nation KFC in more than 80 countries, including Japan, Australia, Egypt, Mexico, Malaysia, and Swaziland

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Global Brands

  • KFC

    • Founded 50 years ago as Kentucky Fried Chicken

    • Today has ~ 5,000 U.S. restaurants; ~ 6,000 abroad

      • 158 franchises in Indonesia, world’s largest Muslim nation

      • KFC in more than 80 countries, including Japan, Australia, Egypt, Mexico, Malaysia, and Swaziland

      • Now 1,100 stores in China


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Global Brands

  • YUM! Brands (formerly Tricon) committed to international growth

    • Since formation (1997, Pepsi spinoff), has opened 5,100+ restaurants; 3,200 of those have been abroad

    • Plans to open 1,000+ stores/yr overseas for foreseeable future

    • 30,000+ outlets in 100+ countries, most of any restaurant Co in world


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Global Brands

  • YUM! can’t just open restaurants based on U.S. model and expect success

    • Has to adapt to local tastes, negotiate changing cultural and political climates

      • Japan: KFC sells tempura crispy strips

      • No. England: stresses gravy and potatoes

      • Thailand: offers fresh rice w/soy or sweet chili sauce

      • Holland: potato-and-onion croquette

      • France: pastries in addition to chicken

      • China: chicken gets spicier farther inland; spinach, egg, and tomato soup

    • “If it’s only an American brand without a regional appeal, it’s going to be difficult to market.”


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Global Brands

  • Key to YUM!’s revival in England was willingness of Co to take more control over franchises

    • Part of trick for any large franchise operator is to allow local flexibility while maintaining quality control and central marketing message

    • YUM! shut down franchises that didn’t meet Co standards, introduced new products, established Co-owned restaurants in France, Holland, Germany to serve as models


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Global Brands

  • Chinese situation differs, to some extent

    • KFC is most recognized foreign brand in China, ahead of Coke and McDonald’s

    • 540 KFCs (now 1,100), 65 Pizza Huts in 130 cities (even though cost of KFC value meal = 6 hrs average pay)

    • KFC particularly adept at wooing children

      • Kid’s meals, inside playgrounds

      • Marketing: “Chicky” is friendly chicken character created by KFC in Asia; hugely popular

        • Source: Fortune, 11/26/01; Wall Street Journal, 8/5/04


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