RISE - Menu Monitor

KFC
Headquarters
1441 Gardiner Lane, Louisville, Kentucky 40213 USA
Tel: (502)874-1000 Fax: (502)874-8291
www.kfc.com
Ownership: Private
Segment: Limited Service Chicken
System Characteristics 2006 2005 2004
U.S. Systemwide Sales ($000) 5,205,000 5,237,000 4,950,000
Company-owned ($000) 1,315,000 1,447,000 1,368,000
Franchised ($000) 3,890,000 3,790,000 3,582,000
U.S. Number of Units 5,394 5,443 5,525
Company-owned 1,025 1,155 1,248
Franchised 4,369 4,288 4,277
International Sales ($000) 9,300,000 7,957,000 7,227,000
International Units 8,864 8,288 7,741
Average Sales/Unit ($000) 960 954 896
Concept Positioning |
KFC is the largest limited-service chicken chain in the world. Its units offer walk-in, sit-down, carryout, and, in many locations,
drive-thru service. KFC offers a variety of fried chicken items, salads, sandwiches, sides and KFC Famous Bowls. Yum!
Brands is the parent company of KFC. Yum! franchises the majority of KFC units.
The majority of KFC units are freestanding. There are several outlets in nontraditional locations as well as kiosk sites. As part
of its emphasis on keeping the concept vital, it is remodeling stores, opening kitchens to customer view and increasing
seating.Stores feature an earth tone color scheme and provide seating for at least 24 persons. As part of recent remodeling,
unit signage features a more defined Colonel Harlan Sanders against a red background with KFC logo in black lettering under
his chin. The interior decor features warmer colors, shop-style windows and a digital jukebox that plays customer selected
music for free. There are signs throughout the restaurant with sayings such as “Finger Lickin’ Good” and “11 Secret Herbs and
Spices.” Yum! also co-brands KFC with its sister chain Taco Bell. Both sales and returns have been boosted in those units that
have both brands. There are also a few tri-branded units that feature Taco Bell, Pizza Hut and KFC.
Colonel Harland Sanders founded KFC in 1930. In 1964, a group of investors headed by John Y. Brown bought it and is
credited with growing the chain to its segment dominance. PepsiCo, Inc. acquired the company in the mid-1980's. In early
1991, in an effort to reposition itself as a healthier concept, the chain changed its name from Kentucky Fried Chicken to the
use of the initials KFC as its official identifier. In early 1997, PepsiCo announced its intention of spinning off its restaurant
holdings into a separate publicly traded company, Tricon Global, later renamed YUM! Brands, Inc. The chain will continue to
grow through franchising agreements. It plans to open at least 500 co-branded KFC-Taco Bell outlets in small communities
throughout the U.S. In addition, KFC is focusing on international markets such as China, where it currently operates nearly
1,500 units. Yum! plans to open at least 300 outlets in mainland China over the next few years; at least 100 will feature drivethru
windows.
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