KFC is the abbreviation used for Kentucky Fried Chicken. It is an American fast-food restaurant founded in 1930 with its headquarters in Louisville, US. As the name suggests, the restaurant specializes in fried chicken. As of 2020, it has branches in over more than 25,000 different locations globally covering a total of 150 countries. Let’s know about KFC Swot Analysis.
KFC uses its Sanders’ recipe of ‘11 herbs and spices’ which is still a trade secret. Its original product, fried chicken, is globally loved by chicken lovers and is possibly evidenced by the fact that it is the world’s second-largest restaurant chain after McDonald’s based on sales.
Below is a swot analysis of KFC focusing on the strengths, weaknesses, opportunities, and threat analysis of the fast-food restaurant.
STRENGTHS
- Strong market presence
Undoubtedly, KFC has a very strong presence in the market of every country it has ever stepped in. It surely leaves a strong impact on the target regions owing largely to the marketing strategies.
- Asian market
Despite having its origin in America, KFC is rapidly opening its franchises in the Asian market. The top three countries offering KFC wide markets are China and Japan, along with the US, the parent region. One might even say that it dominates the Asian market, with approximately 40% of the worldwide KFC outlets.
- Wide-ranging menu
One strong reason for the growth of KFC in foreign regions is the offering of a variety of food options to cater to the taste and needs of the local customers. For instance, KFC in India introduced a ‘vegetarian menu’ to cater to its large vegetarian customers. Similarly, in the western provinces of China with heavy Muslim Uighur customers, KFC conducts itself based on the regional customs and in Japan, it offers dark meat over white meat along with a bowl of rice.
- KFC’s open kitchen
The idea of opening the gates to the kitchen of KFC has been very unique and caught the attention of many customers. The opportunity to enter the kitchen and cook your chicken, based on your taste preferences, sure sounds captivating. The exclusive ticket to the behind scenes preparations of your favorite food has attracted a lot of customers and proved itself to be somewhat profitable.
- Marketing
The catching slogans such as ‘It’s finger-licking good’ indeed grasps the attention of the customers. Similarly, high-quality color pictures used in the advertisement played a huge role in rousing the appetite of the customers.
- Digital marketing
Concerning the marketing aspect, the digitalization of the world has been helpful for KFC as well. The restaurant has launched itself on social media and the internet, making it more reachable to people from far-off places.
- Delivery services
The presence of KFC on the internet further opened the way for delivery services, whether in collaboration with other delivery services or launching its own. This further has broadened its reach within the audience. Moreover, these services have proved to be more profitable during the covid-19 restrictions, making it possible for KFC to not die without people coming over.
- Employment
Wherever KFC has opened, employment opportunities have also opened its gates. In a world going through an employment crisis, the coming of KFC and new opportunities are appreciated by the people in need.
WEAKNESSES
- Unhealthy menu
One major reason why customers might choose other restaurants over KFC is because of its famous products being greasy and rich in calories. Even though it offers a variety of food that is healthy, it still has a long way to go for being the first choice of health-conscious people.
- Lack of beforehand research
Lack of knowledge about the preferences in the target regions is often proven very dangerous for the franchise. Catering to the local preferences or tastes is the key to winning over new regions and not doing the same is one way of digging one’s own grave.
- Franchise system
The franchise system of running KFC in different regions independently weakens the brand as a whole. If a franchise mismanages, the whole brand faces consequences.
The supply chain of KFC has always been questioned. Various allegations have been raised about the poor conditions of the supplied poultry and the brutal harming of animals by the suppliers that eventually leads to distrust in KFC, in general, and its fall from fame.
- Employment
As much as it is a strength, it has the other side of the story too. Employment opportunities often come with low working conditions and pay. This eventually puts the brand in a negative image.
OPPORTUNITIES
- Modification of the menu
Opening up its menu and modifying it based on the preference of the local people paves the way for KFC. Just like it has adjusted to vegetarianism, specific dietary practices in India and Japan, a background study of the target region can prove to be very helpful.
- Expansion
With its market presence, the scope of the expansion of KFC is also very wide. Being the second-largest fast-food chain, it surely is looked up to by many chicken lovers. Setting up franchises in different regions, expanding the chain is one big achievement. Wide expansion eventually brings with it a wider profit.
- Cheap menu
The less prices of the offered food attract a much larger audience than one can even imagine. Adding to these cheap prices are the constant offers that it provides for its customers, which one cannot deny, attracts customers, even for one single day of the week. These in some way offer a loyal customer base for the franchise.
- Trials and experiments
Adding on to the first point of the modification of the menu, the different franchises can keep on trying new meals and menus to attract a much wider audience. These could be either based on the same ingredients, different styles, or using completely different ingredients.
THREATS
- Competition
KFC in general faces competition with McDonald’s on a global level. However, even on a regional level, it has no fewer competitors. For instance, Al-Baik (fast food restaurant chain) in Saudi Arabia and the craze of traditionally made fried chicken in South Korea has proven to be a very strong competition to KFC in the said regions.
- Health issues
As mentioned in its weaknesses, the ‘unhealthy’ menu can be very dangerous for KFC. Moreover, the preference for a healthy diet could lead to its downfall unless some steps are taken to prevent such a fall.
- Lawsuits
In the past, the brand has faced many lawsuits and lost quite a few of them. It might need to change the way it operates to avoid future lawsuits which might drain both its time and money in a large quantity.
Conclusion
Summing up, based on the swot analysis of KFC one can say that it surely holds an upper hand in the market with its strengths, but that doesn’t negate the threats it is liable to and the weakness it has in general. With its strong market presence, power in the Asian market, and wide range of menus based on local preferences, it can go a long way. In general, it can make use of the opportunities to take over the other fast-food restaurants. However, it must always remain cautious of the threats and their weaknesses
