GUIDELINES

II)KFC’s challenges and risks

1)Intensive competition
KFC biggest challenges are many competitors take part in fast food chain. Many new players
entered the market with similar products at lower price which put pressure on KFC to keep its
price while focus on maintaining their quality. There are several corporations with identical
products such as MC DONALD’S, BURGER KING, TACO BELLS especially Chick-FII-A.

https://www.qsrmagazine.com/operations/fast-food/ranked-the-top-50-fast-food-chains-in-
america/
They are developing significantly, as MC DONALD’S still remained top 1 with 3625-thousand-
dollar average sales per unit. Meanwhile, Chick-fil-a reached top 3 with 6710 thousand-dollar
average sales per unit. On the other hand, KFC fell down to top 15 in 2022 and earned 1341
thousand-dollar per unit which were quite disappointed comparing to other fast food chains.
2)Healthy trend food of customer
As consumers become increasingly concerned about the health implications of fast food, KFC’s
traditional fried chicken offerings could be negatively impacted. There is a decline in sale of fast
food. Health experts and dietitians would not recommend KFC products as part of a healthy diet
because KFC chicken contains high calories which can cause obesity and diabetes. Moreover,
KFC are rated as 10 of the most unhealthy food restaurants in US. In comparing with Chick-Fil-
A, a young brand which rated as top 10 in the most unhealthy food but they have many
campaigns to deal with this new trend such as changing consumer’s preferences: new salad,
grilled chicken.
https://www.qsrmagazine.com/growth/consumer-trends/chick-fil-still-americas-favorite-fast-
food-chain
https://www.nrn.com/health-amp-nutrition/chick-fil-menu-additions-target-health-conscious-
consumers

3)Lawsuits against KFC about food safety

There are a few lawsuits about KFC.
+KFC faced food safety scandal in 2012 and 2014 affecting market shares which decline from
39.7% in 2012 to 31% in 2017.
https://www.linkedin.com/pulse/kfc-china-secret-recipe-dominating-worlds-largest-market-amr-
elharony
+In Australia, a child eating children twister at KFC suffer left brain damaged. KFC was ordered
to pay the child 8 AUD in fee.
PAUL BILLY APRIL 27.2012
https://www.smh.com.au/national/nsw/kfc-ordered-to-pay-8m-to-brain-damaged-girl-20120427-
1xpkc.html
+ There are some rumors about KFC in America that the chain was accused of genetically
modifying chickens to create bigger, meatier birds.
In consequences, these allengations undermine the credibilty and repuation of KFC.

1. Franchise expansion
KFC had nearly enormous franchisees: 3872 licensed units but the training quality was
pretty poor which lead to the decline in sales. Therefore, KFC should select employees,
ingredient carefully to provide comprehensive support and training to drive growth, also
maintain food quality.
2. Wide range of food
KFC products mainly contain fried chicken which is known the most part unhealthy in
KFC menu. According to research, there are 568 calories in KFC friend chicken which
consists of saturated fat and cholesterol. Therefore, KFC should introduce a variety of
healthier menu options, such as grilled chicken, salads vegetable sides, instead of only
chicken.
3. Improve reputation
In recent years, KFC lost their reputation in many sides such as critics about food quality,
food service and many lawsuits. To gain the credibility of the brand, KFC need a revolutionary
comeback to appeal customers. In my opinion, investing in the environment could be a good way
for KFC to bolster its reputation and customer trust. Implementing environmental protection
measures, using recycled materials, and reducing waste can help attract customer interest and
simultaneously minimize negative environmental impacts.