Operations
See also: List of countries with KFC franchises
A stand-alone KFC drive-throughunit located in Australia
KFC World Operations as of December 2014
KFC is a subsidiary of Yum! Brands, one of the largest restaurant companies in the world. KFC had sales of $23 billion in 2013. KFC has its headquarters at 1441 Gardiner Lane, Louisville, Kentucky, in a three-story colonial style building known colloquially as the "White House" due to its resemblance to the US president's home.The headquarters contain executive offices and the company's research and development facilities.KFC isincorporated at 1209 North Orange St, Wilmington, Delaware.
By December 2013, there were 18,875 KFC outlets in 118 countries and territories around the world.There are 4,563 outlets in China, 4,491 in the United States, and 9,821 across the rest of the world.Outlets are owned by franchisees or directly by the company.Eleven percent of outlets are company owned, with the rest operated by franchise holders.Although capital intensive, company ownership allows for faster expansion of the chain.
KFC Restaurant, Thuraipakkam, Chennai, India
Most restaurants are furnished with images of the company founder, Colonel Harland Sanders.As well as dine-in and take-out, many stand-alone KFC outlets offer a drive-through option.KFC offers a limited delivery service in a small number of markets. Units include express concessions and kioskswhich feature a limited menu and operated in non-traditional locations such as filling stations, convenience stores, stadia, theme parks and colleges, where a full scale outlet would not be practical.Average annual sales per unit was $1.2 million in 2013. Worldwide, the daily average number of food orders at an outlet is 250, with most occurring within a two-hour peak-period.
As chairman and CEO of Yum!, David C. Novak ultimately has foremost responsibility for KFC operations.Sam Su is chairman and CEO of Yum!'s Chinese operations, and Muktesh Pant is the CEO of KFC.Richard T. Carucci is president of Yum!, and Roger Eaton is the COO of Yum! and the president of KFC.
Africa
The company hopes to expand its African operations, where it is already the regional leader among US fast food chains.The company is slowly expanding across the African continent, opening 70 outlets, but progress has been hampered by sourcing issues, such as a lack of quality suppliers.
Asia
KFC continues to grow in Asia. In Malaysia there were 579 outlets as of December 2013.
In Sri Lanka, KFC was launched in 1995 at Majestic City. There were 25 KFC restaurants in Sri Lanka as of December 2014.
China
Main article: KFC in China
KFC is the largest restaurant chain in China, with 4,563 outlets.[2] KFC became the first Western fast food company in China after its first outlet opened in Qianmen, Beijing, in November 1987.
Local food items include rice congee and tree fungus salad, with an average of 50 different menu items per store.
In December 2012, the chain faced allegations that some of its suppliers injected antiviral drugs and growth hormones into poultry in ways that violated food safety regulations.This resulted in the chain severing its relationship with 100 suppliers, and agreeing to "actively co-operate" with a government investigation into its use of antibiotics.KFC China sales in January 2013 were down 41 percent against the previous year. To counter sluggish sales, the menu was revamped in 2014.
In July 2014, Chinese authorities closed down the Shanghai operations of the OSI Group, amidst allegations that it had supplied KFC with expired meat. Yum! immediately terminated its contract with the supplier, and stated that the revelation had led to a "significant [and] negative" decline in sales.
India
KFC outlet on Middleton Row inKolkata.
KFC in Polayathode, Kollam city. This is one of the largest KFC stores inKerala state, India
In December 2013, there were 361 KFC outlets in India.As well as the standard KFC offerings, the chain sells a chickpea burger, a paneer burger, hot wings with chilli lemon sprinkles and other country-specific products. A major franchise holder is QSR Brands (M) Holdings, which operated 26 outlets as of 2012.
The first Indian KFC was a two-storey outlet on the fashionable Brigade Road in Bangalore in June 1995. According to journalist Michael White, the company could not have chosen a "more difficult venue for its maiden entrée into the country." Bangalore housed the headquarters of the Karnataka Rajya Raitha Sangha, one of the most influential, vocal and anti-foreign investment farmers' associations in the country.The first outlet suffered protests from left wing, anti-globalisation and environmental campaigners, as well as local farmers, who objected to the chain bypassing local producers. Many Indians were concerned about the onslaught of consumerism, the loss of national self-sufficiency, and the disruption of indigenous traditions. The protests came to a head in August 1995, when the Bangalore outlet was repeatedly ransacked.The KFC outlet in Bangalore demanded, and received, a police van permanently parked outside for a year.The outlet was closed on September 13, 1995 by local authorities, who claimed the company used illegally high amounts of monosodium glutamate (MSG) in its food. The outlet re-opened a few hours later as the result of an appeal by KFC to theKarnataka High Court. The company stated the recipe was no different than that used in any other KFC store. Rural activist M. D. Nanjundaswamyclaimed KFC would adversely affect the health of the impoverished, by diverting grain from poor people to make the more profitable animal feed.Former environment minister Maneka Gandhi joined the anti-KFC movement. A second outlet opened in Delhi, but was closed by the authorities throughout November, purportedly for health reasons, but more likely to avoid a repetition of the Bangalore incident. The Delhi outlet soon closed permanently.
KFC began to expand outside of Bangalore in 2004,with a localized menu that was the most extensive meat-free menu across the chain's worldwide operations. It introduced a vegetarian menu that included rice meals, wraps and side dishes and, like McDonald's, served eggless mayonnaise and sauces. Unnat Varma, marketing director of KFC India, states "The vegetarian offerings have made the brand more relevant to a larger section of consumers and that is necessary for KFC's growth." KFC also began using Indian spices and cooking techniques to localize its chicken dishes. By 2008–09, KFC operated 34 outlets in India. In 2014, KFC launched the "So Veg, So Good" menu as part of an India-specific promotional strategy focused on enhancing their vegetarian range. Dhruv Kaul, marketing director of KFC India, stated, "The So Veg, So Good menu launch does not mean that we are moving away from our core chicken offerings. It enhances and strengthens our existing vegetarian range and helps broaden the brand's relevance in a diverse country such as India."