kentucky fried chicken
...year later. By the time KFC was acquired by PepsiCo in 1986, it had grown to approximately 6,600 units in 55 countries and territories. When PepsiCo took over KFC they replaced the majority of the existing managers with PepsiCo mangers and this lead to the decline in company moral. Due to the finical draining of PepsiCo by KFC, and for other strategic reasons, in 1997 PepsiCo spun off its restaurant businesses (Pizza Hut, Taco Bell and KFC) into a new company called the Tricon Global Restaurant, Inc. Tricon continues to expand its fast food chains across China, giving it greater market penetration than any other fast food operator in the country. Tricon’s fast food chains have become the bench mark by which other, newer chains have been modeling themselves. Today KFC is part of Tricon Global Restaurants, Inc., which is the world's largest restaurant system with nearly 30,000 KFC, Taco Bell and Pizza Hut restaurants in more than 100 countries and territories. Impacts on the world The China expansion plans first came-up in the early 1980's after several successful expansions in the South East Asian region including Japan. Tony Wang who was born in China, educated in Taiwan and in the USA, and now living in Singapore was appointed manager for KFC's South East Asian region. He was given the autonomous responsibility to further investigate the feasibility to further expanding KFC's operations in Asia to the world's most populous nation and the largest market for consumer goods (China). On the other side of the scale, expanding into China would certainly be KFC's most risky international business strategy so far. Moreover, a "go-ahead" signal would make KFC the first western fast-food chain in China. Mr. Wang started by opening up a single store on the corner of Tian’anmen Square in Beijing, right next door to the National People’s Congress. The menu offered was quite different from those of the United States. The basic food items stayed the same like chicken legs, breasts, and nuggets but they added a few new items to the list like the salmon sandwich, chicken a-la-king, and the egg tart. Every meal comes standard with two sides and can be chosen from a variety of different side items. From theses expansions, the company’s fast food chain has expanded rapidly across China, to over 1,000 stores. The new western fast food concept that KFC introduced has changed the way Chinese people eat, and their perceptions of western food and culture. Latin America was one of the international markets KFC focused on. After 1990 it took a very aggressive strategy by opening company-owned restaurants and by expanding its franchise operations. The use of local management in the franchises has benefited KFC because of there knowledge of the local market. Latin America has the potential to be a major stepping stone for KFC in there rebuilding process. Mexico is the strongest presence of KFC in Latin America, where most of them are company-owned, mainly because of the lack of a law protecting patents, information, and technology before 1990. The North American Free Trade Agreement which went into effect in 1994 and created a free trade zone between Canada, Mexico, and the United States was of great importance to Brazil – Latin America’s largest economy and mainly unexplored by KFC only having eight stores located there in 19...