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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
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
global brands2
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
global brands3
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.”
global brands4
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
global brands5
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