SWOT analysis of KFC

Strength Weakness
Global Presence: KFC is the world’s 2nd largest restaurant Unhealthy fats: Use of unhealthy fats & unhygienic calories is creating problem
chain with more than 18,000 KFC outlets in 120 countries. for the fast food chains to which KFC is not an exception.
It is the subsidiary of Yum! Brands, Franchisee management is one of the critical issues in the success
a restaurant company that also owns the Pizza Hut and Taco Bell. Managing franchisees: of the fast food chains and due to conflicting operational issues
Strong parent company:
Yum! Brands, the fortune 500 company, is one of the world’s between KFC and its franchisees many of its outlets got closed since its inception.
largest fast food restaurant companies in terms of system units
Although KFC is known for its finger licking Chickens menu but
Threat
Veg & Non veg offerings: recently they ventured out in Vegetarian category which is helping them
in increasing their business & attracting both veg & non-veg preferred customers. Competition: KFC is not a leader in the fast food chain industry so it has to compete with
Sanders’ Original Recipe of “11 herbs and spices” is one of the all other well established fast food companies who all are flourishing in the market.
most famous trade secrets in the catering industry.A copy of With government & NGO’s health awareness campaigns people are becoming more
Changing Consumer
Secret Recipe: the recipe, signed by Sanders, is held inside a safe inside a aware of what to consume & what to not which is affecting the business of fast food
Eating habits:
vault in KFC’s Louisville headquarters, along with eleven vials containing the Industry as a whole.
herbs and spices. Raw Material prices: Rise in the raw material prices may affect the industry, of which KFC
business is not an exception.
Rise in channel conflict resulting into closing of the franchisees is affecting
Opportunities
Closure of current its brand image & resulting into negative word of mouth.
Emerging economies and their changing lifestyle resulting into more of outings Franchisees:
Market expansion: with family/friends, corporate parties will result in the high growth of the industry.
Furthermore, the presence and popularity of McDonalds is anytime more
daunting for KFC
Although KFC recently entered in vegetarian fast food category but they have
limited menu items as compared to other chains like subway, Pizza hut
Specializing into vegetarian Menu: Mac Donald’s, who are already an established player in the segment. So
specializing into Veg. items like they have in Non-Veg will help the company
in its overall global growth.
Designing its menu for the health conscious population will be the driving force for
Rise in health conscious Population the whole industry in the future because due to changing lifestyle people are getting
less time for themselves due to which health issues are raising.
Strengthening its outlet network by further penetrating the current market will
Penetration: help KFC in increasing its revenues & become no.1 player in fast food chain
market given that now they have presence in both Veg. & Non-Veg.
menu in the selected market.