Case 10 KFC
... INTRODUCTION Kentucky Fried Chicken (KFC) is the largest chicken restaurant in the world. ... In 1963, Colonel Sanders sold KFC to two Kentucky businessmen for two million dollars. ... Massey and Young took KFC public in 1966. ... Since then, KFC has had three other owners. The last owner, PepsiCo, moved to spin off KFC along with Taco Bell and Pizza Hut in 1997. ... BACKGROUND KFC dominated the chicken chain segment of the fast-food industry with a 56% market share in 1999. ... Church’s (9%) Initially, KFC’s market share sounds great. A closer look shows KFC had been losing market share by approximately 2% annually since 1995. However, competitors did not lure KFC’s customers. ... In the fast-food industry, KFC ranked sixth overall in the U. ... The five companies ahead of KFC were respectively: McDonald’s, Burger King, Wendy’s, Taco Bell, and Pizza Hut. In 2000, KFC was ranked third globally among the world’s top thirty-five fast-food chains. ... Until the late 1980’s, KFC did not update menu offerings. Its Original Recipe flavor was very popular, and KFC was not motivated to worry about the menu. ... KFC was still testing its sandwich. KFC introduced its sandwich several months later. ... KFC withdrew its chicken sandwich due to low sales. Later in the 1990’s, KFC introduced five new chicken sandwiches and Crispy Strips. ... When PepsiCo owned KFC, 40% of the stores were company-owned. ... ISSUES KFC has saturated the U. ... KFC combated this by combining either Taco Bell or Pizza Hut with KFC in one building.