Today, everyone knows the name of KFC or Kentucky Fried Chicken without any doubt. It is an American based chain of fast foods. The headquarters of KFC lies in Louisville, Kentucky, USA. KFC SWOT analysis tells about the strength, weaknesses, opportunities, and threats. It reveals how KFC enhances its growth and stability. In this article, we'll let you know about the strengths and weaknesses points that will help develop new strategies to increase the profit.
Among the fast-food providers, KFC is the market leader globally. It is considered the second global fast-food brand in the market. This position is achieved with the help of the strength that KFC has. We have discussed some of these strengths here.
KFC operates over 23,000 fast-food restaurants in approximately 140 countries and has 38,000 branches. By 2018, the KFC franchise business channel had expanded to more than 141 countries and regions, including over 22,000 areas. One of the brand's significant strengths is its strong global presence through its restaurants.
KFC is a globally known arena, with over 15,000 locations in 120 countries. Unexpectedly, KFC has more authority in many of these countries due to their non-meat food menu.
Because the KFC brand is among the most well-known globally, it is simple to obtain and obtain favorable credit and investment equity terms. A brand with exceptional quality feels it is easy to attract and keep customers, especially if it is the first to initiate an item to them. KFC is also prevalent among franchisees.
KFC has developed an easily recognizable brand name and reputation through years of adverts. They have succeeded in building a loyal customer base, which is critical to the company's growth and development.
Individuals chose KFC for its distinctive flavor recipes. Its recipes remain a closely guarded secret. KFC's most famous and profitable product is its "finger-licking good" fried chicken. The delicacy's heart was a mixture of 11 fresh herbs that the organization had managed to keep a state secret for decades.
KFC capitalizes on this puzzle by displaying a recipe preserved in a cellar whose additives are sourced from various suppliers to secure the secret. The first perception is that KFC chicken is available only at KFC nowhere else.
Food production process
KFC is a leading company in food production that is both efficient and effective. Its production methods are intended to produce high-quality fast foods.
The influential food supply chain enables KFC to make the best use of its productive resources, allowing it to keep costs down.
KFC serves both non-vegetarian and vegetarian meals. Chicken and meat are the most popular options. KFC also sells burgers, chicken wings, and other items in addition to their trademark menu.
KFC's points tally on the ACSI in 2021 was 79, fourth among fast-food establishments. However, it has preserved both the rating and placement in recent years.
The above devotion guarantees KFC an industry in which it may build and grow. KFC has a large and devoted following. It has kept its clients by giving them tasty, one-of-a-kind flavors.
KFC has seemed to be well-positioned in the industry. However, a SWOT analysis of its proposition, techniques, and frameworks reveals some flaws that could hinder growth.
Due to its immense public image, KFC endures the same flaws as other fast-food eateries, such as mainly serving high-fat foods and employing a dubious franchise management system.
Most of KFC’s top ten popular items have inordinately high amounts of sodium, saturated fat, and calories. Like many other fast food joints, KFC also has a menu that is mostly unhealthy. It is laden with fats and calories that are linked in many studies and reports to obesity, health risks, and other diseases. KFC itself has tried to expand its menu to include healthy options, some of which have been very popular.
Company growth is not cheap, and KFC has had to foot the bill for capitalizing on global expansion. Extended ranges have put pressure on the existing structure and even resulted in stockpile slowdowns.
KFC has typically to invest heavily to sustain itself, which consumes its profits and makes it vulnerable.
KFC was accused of polluting the environment and endangering animals, and its image was tarnished as a result. This type of criticism of a company's brand image is expected in the market.
These scandals have ranged from risky food handling to unethical treatment of livestock and employees and corrupt business practices.
KFC has survived all criticism, but at a high cost and lost revenue, and that's hardly a lucrative trend to continue.
The shifting nature of the industry, both locally and globally, provides many possibilities for those who are prepared. KFC has numerous opportunities to capitalize on to receive further momentum and rise bigger as a brand in the years ahead. KFC is well-positioned to capitalize on the very following opportunities:
Unhealthy lifestyles are expanding the number of hospital stays and, as a result, shaping the healthcare financial sector. Traditional fast food is being phased out slowly but steadily, with governments becoming more encouraged to regulate.
It can focus on health-conscious groups by ensuring a healthy choice to customers and introducing grills, salads, and fresh fruit juices.
KFC is quite well for the selection of non-vegetarian meals and goods. Many channels in so many countries now only offer non-vegetarian choices to their consumers. With an expanding quantity of vegetarians, expanding the menu to include vegetarian food represents a massive opportunity for growth.
Nonetheless, with healthier alternatives such as Subway, this company will face a difficult battle. Subway isn't even the most direct competitor; McDonald's also provides healthy, non-meat options. The only difference is that KFC is ready to specialize, whereas other fast-food restaurants are only dabbling in this market.
People become more price-conscious as the economy grows. KFC could perhaps offer low-cost meals to attract price-conscious customers.
Threats are hurled at KFC at every turn—fortunately, this is true among most fast-food restaurants. If KFC acts now, it will be able to remove most of these threats before they can become an impounding issue. Today's market is highly turbulent and competitive. KFC, just like every other brand, confronts a variety of threats.
Today's fast-food industry has received traction with the emergence of various brands and names. Due to the high level of competition in the food industry, all other restaurants threaten KFC's business. All fast-food restaurants face the same threat: competition.
Raw Material Price
Raw material prices are going up; if KFC wants to succeed, it must preserve the top-notch customers' demand while not raising food costs.
Changing raw material prices can impact the company by spending cash and, eventually, raising product prices.
Many individuals have become dissatisfied with traditional fast-food restaurants due to medical campaigns and advertisements. Even after some success in its health-oriented fast foods, KFC has previously stated its promise to its fried chicken selections. It's a huge step forward for consumers, but it creates perverse incentives like KFC nervousness.
KFC SWOT Analysis Mind Map
It was the KFC SWOT analysis, but we saw the following that a company must develop and be aware of. One of KFC's significant benefits is that it has a significant market existence and has been and keeps growing. It also has its signature recipes and a variety of products.
KFC may face fierce competition from regional and global businesses and increasing raw material expenses, eventually resulting in higher selling prices.