KFC has registered its company in about 150 countries and 22622 outlets making it the second-largest restaurant chain after Mcdonald’s. It was one of the 1st American Fast- Food chains to expand Internationally. It earns revenue of about US$27.9 billion.
KFC has been growing through digital innovations and building the latest food stores, making it easier for their guests to enjoy chicken.
Thus this makes us keen to know the SWOT analysis of KFC.
In this blog, we have written about its strengths, weaknesses, opportunities, and threats.
Before we start with its SWOT analysis let us know about KFC as a company.
One cook who created the most famous finger-licking recipe nearly 75 years ago, 11 secret herbs and spices. KFC ( Kentucky Fried Chicken) is an American fast-food restaurant chain headquartered in Louisville. KFC was composed by Colonel Sanders, a businessman who started selling fried chicken from his roadside in Corbin. Colonel-inspired, most craved and finger-licking recipe is still protected and followed until today.
It offering 100% real chicken and meeting independently assured welfare of animal’s food standards of safety.
Let us now see the SWOT analysis of KFC.
SWOT Analysis OF KFC
SWOT Analysis stands for Strength – Weakness – Opportunities – Threats to a company. SWOT Analysis of a company helps to formulate new strategies and plans to increase sales and profits. SWOT analysis helps companies to know where they stand in the market and get a wide idea of its business and it makes it easy for them to make decisions and improve on their weaknesses.
Let us start by analyzing the strengths of KFC.
1. Strengths Of KFC
- Global reach – KFC is an internationally renowned fast food store having spread over to 120countries with 20k plus stores. Which helps it cater to a large number of people in the market.
- Wide range of products – KFC delivers non-veg and veg food. Meat and chicken being most preferred. KFC also offers Products like burgers, chicken wings, etc as well as their signature menu
- Trademark recipes – One of the reasons people prefer KFC is because of its unique flavoured recipes. Its recipes are still kept as a secret.
- Rapid growth – The brand has been growing rapidly since it initially started. It has grown its branches in different countries like China, India, etc.
- Loyal customer base – KFC has a strong loyal customer base. It has retained its customers by its delicious unique flavours offered to them.
Let us now see the Weaknesses of KFC.
2. Weaknesses Of KFC
- Health consciousness – In the modern world, each individual is becoming health conscious. Having said that Fast Food corners like KFC have a large content of fat and calories in their meals is making people shift to a healthier option. Whereas KFC has no healthy meals offered on its menu.
- Criticism – KFC was accused of causing harm to the atmosphere and animals due to which its image was traded. These kinds of criticism a companies brand image falls in the market.
- Lack of management – KFC being a famous and international fast food server faces difficulty in managing and controlling franchises.
Let us now see the Opportunities for KFC which it can utilize.
3. Opportunities for KFC
- Regional speciality – Every region has its own tastes. KFC should bring special dishes made for that particular country or region. This will help them attract more customers.
- Healthy meals – It can target health-conscious groups, Offering a healthy option to the customers, and launching grills or salads as well as fresh fruit juices.
- Expand to new places – KFC has to expand its business to the places it hasn’t reached yet and grow its branches. This will help the company to get a much larger market share.
- Budget-friendly meals – With the growing market, people are becoming more price-conscious. KFC should offer budget-friendly meals to attract customers which are price sensitive.
Lastly, let us see the Threats for KFC.
4. Threats for KFC
- Many competitors – Due to large competition in the food industry, KFC has a threat from all other restaurants as it can affect KFC’s business. It not only has a threat from international companies but also the local companies which are around it as well.
- Raw material prices – The changing prices of raw materials can affect the business by increasing the expenses and eventually increasing the prices of the products.
- Faltering economies – As a global company, KFC has a threat to facing issues with faltering economies, rising food rates as well as recession.
As we have studied the SWOT analysis of KFC we have seen the different scenarios a company has to improve and be aware of.
One of the major strengths of KFC is that it has a wide reach in the market and has been growing rapidly and still growing. It also has its trademark recipes and it serves different types of products.
We have also seen the weaknesses of KFC which are the changing mentality of people towards healthy food and the criticism that it faced due to lack of environmental protection and animal harm.
Some Opportunities that KFC can take advantage of our regional preferences of people, they can bring new dishes specially for that location. In the changing market, customers are becoming more price-conscious. KFC can bring dishes for price-sensitive customers.
The threats that KFC may face are the large competition from the regional and international brands and the increase in raw materials which will eventually lead to an increase in the price of the products.
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