David Novak appointed President[edit]
By 1994, KFC had a total of 9,407 outlets worldwide, including 5,149 outlets in the US, and over 100,000 employees.[103] That year, the chain began to struggle after competitors such as McDonald's introduced value menu offerings.[104] After a disappointing set on quarterly earnings, Cranor left the company in January 1994.[92] In his wake, two executives with marketing backgrounds were charged with reviving the company.[105] Roger Enrico was appointed as the CEO of PepsiCo Worldwide Restaurants, and David C. Novak was appointed President of KFC in North America.[105]
In 1995, Novak introduced two successful new products— Crispy Strips (breaded strips of chicken) and the chicken pot pie— the chain's first major new product launches in almost two years.[104] Novak credits an improved, more "open" relationship with franchisees for the introduction of the two new items: Crispy Strips were invented by anArkansas franchisee, and the pot pie was similarly developed alongside franchisees.[106] Meanwhile, less popular items, such as corn muffins, were removed from the menu.[107] At the same time, Enrico scaled back the increasing competition between KFC and its sister companies, Taco Bell and Pizza Hut; Taco Bell had begun offering its own chicken products, and KFC had attacked Pizza Hut in its marketing.[107]
In 1996 the company repaired its relationship with its franchisees by immediately dropping the most contentious of the contract terms that had been proposed by chairman John Cranor five years previously.[108] The 1976 contract was restored, including the 1.5 mile outlet exclusivity zone, while the parent company gained greater control over national advertising.[108] Novak also axed the Colonel's Rotisserie Gold product and introduced a new non-fried item called the Tender Roast.[109] Tender Roast was served by piece, as with the fried chicken, in contrast with the rotisserie product, which had been sold in quarter, half or whole chicken portions.[109] Afterwards, Novak oversaw ten fiscal quarters of consecutive growth at KFC North America.[110] As a result of his success at KFC North America, Novak became President and CEO of the entire KFC organization in 1996.[111]