1. Type: Wholly owned subsidiary
Industry: Restaurants
Founded: Wichita, Kansas, U.S.A (1958)
Founder(s): Dan and Frank Carney , Employees: 140,000+
Headquarters: 7100 Corporate Drive Plano, TX 75024, U.S.
Number of locations: 15,000 worldwide (as of 2012)
Key people: David C. Novak, Chairman, Scott Bergren, President
Products: Italian-American cuisine pizza ¡ pasta ¡ desserts
Parent: Pepsi Co: (1977â1997), Yum! Brands (18997âpresent)
Pizza Hut is an American restaurant chain and international franchise that offers different styles of
pizza along with side dishes including salad, pasta, buffalo wings, breadsticks, and garlic bread.
Corporately known as Pizza Hut, Inc, it is a subsidiary of Yum! Brands, Inc. Pizza Hut, the first
International Chain Restaurant in Bangladesh, opened its flagship restaurant in 2003 at Gulshan in
Dhaka. From the day of its launching Pizza Hut remains the acknowledged leader of the Pizza
Industry, evident from the continuous crowds the restaurant successfully draws in. Pizza Hut has
over 15,000 outlets across 100 countries. Following its grand success in Dhaka, the Chittagong
outlet was opened in September 2005 and later on in Coxâsbazar as well.
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2. Transcom Foods Limited (TFL) started its journey in 2003 as a franchisee of Pizza Hut, the first
International Chain Restaurant in Bangladesh, and went on to sign the contract to become the
franchisee of Kentucky Fried Chicken (KFC) in the year 2006. Both Pizza Hut and KFC are
subsidiaries of the worldâs largest restaurant company Yum! Restaurants International. In a span of
ten years, TFL has opened 5 Pizza Hut and 11 KFC outlets so far throughout the country.
Pizza Hut Franchise Information
īˇ Initial Franchise Fee: $25,000
īˇ Total Investment: $1.3M to $3M
īˇ Net worth requirement: $1M
īˇ Cash liquidity requirement: $360K
īˇ Pay an annual 6.5% royalty on your profit.
īˇ Must commit to building at least 3 restaurants over 3 years
īˇ Term of Franchise Agreement: 20 years
Sources:
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6. SWOT analysis of Pizza Hut
Strengths:
īˇ Innovative range of pizzas under one roof
īˇ Part of the largest restaurant chain in the world
īˇ Food attracts people of various ranges from young to old.
īˇ Over 18,000 franchises around the world
īˇ Pizza Hut sits on top of global full-service restaurant tree
īˇ Quick home delivery services.
īˇ Sound financial situation and international turnover.
īˇ Hygienic food and quick service.
īˇ Famous television advertising
īˇ They are ISO(International Standard Organization) Certified
Weaknesses:
īˇ High price for every menu.
īˇ Franchise management.
īˇ Loyal customers are feeling that the satisfaction of the pizzas is declining.
īˇ There are complex computer systems and internal conflicts from franchisees.
īˇ There is a lack of an organic pizzas, which will limit the target market.
īˇ They are providing less range of products comparatively with high prices. They are more
focused on Western taste instead of Eastern and Asian.
īˇ Obviously, Pizza Hut is not the low cost producer. They rely on their quality pizza and
good service to account for their higher prices
īˇ Rising competition undermines Pizza Hut as consumers go for greater convenience
īˇ Rising cheese costs threaten margins
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7. Opportunities:
īˇ New Pizzas with different crust sizes and flavours.
īˇ Pizza Hut expands Indian market menu and looks to old favourite to bolster sales.
īˇ Diversification of new products can increase their market shares.
īˇ Venture more into home delivery.
īˇ Pizza hut can come up with the new products considering taste of people as like
McDonalds
īˇ They can reduce their prices because of more resources.
Threats:
īˇ Threat from Dominos pizza, also from Mc Donaldâs who have tried to introduce a new
meal that is a Pizza called: McPizza.
īˇ Other local restaurants can affect their market share by providing pizzas with lower price.
īˇ Bird flu.
īˇ Health conscious people.
īˇ Social factors can affect their image as a Western organization.
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8. Type: Subsidiary
Industry: Fast food restaurant
Founded: 1930 in North Corbin, Kentucky (original) 1952 at 3900 South State St, Salt Lake City, Utah
(franchise)
Founder(s): Harland Sanders
Headquarters:1441 Gardiner Lane, Louisville, Kentucky, United States (Operational
Headquarters) 1209 North Orange St, Wilmington, Delaware, United States
(Incorporation)
Number of locations: 18,000 (2012)
Key people: David C. Novak, Chairman and CEO of Yum! Brands
Roger Eaton, Chairman and CEO of KFC
Products: Fried chicken, chicken burgers (chicken sandwiches US), wraps, French fries, soft
drinks, salads, desserts, breakfast
Revenue: US$15 billion (2011) Parent Yum! Brands
What made us great is still what makes us great. KFC Corporation, based in Louisville,
Kentucky, is one of the few brands in America that can boast a rich, decades-long history of
success and innovation. It all started with one cook who created a soon-to-be world famous recipe
more than 70 years ago, a list of secret herbs and spices scratched out on the back of the door to his
kitchen. That cook was Colonel Harland Sanders of course, and now KFC is the world's most
popular chicken restaurant chain, specializing in that same Original Recipe, along with Extra
Crispy chicken, home-style sides and buttermilk biscuits. There are more than 18,000 KFC outlets
in 120 countries and territories around the world.
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9. Transcom Foods Limited (TFL) started its journey in 2003 as a franchisee of Pizza Hut, the first
International Chain Restaurant in Bangladesh, and went on to sign the contract to become the
franchisee of Kentucky Fried Chicken (KFC) in the year 2006. Both Pizza Hut and KFC are
subsidiaries of the worldâs largest restaurant company Yum! Restaurants International. In a span of
ten years, TFL has opened 5 Pizza Hut and 11 KFC outlets so far throughout the country.
KFC Franchise Information
īˇ Initial Franchise Fee: $45,000
īˇ Total Investment: $1.2M to $1.8M
īˇ Net Worth: $1.5M to $2.5M
īˇ Liquid asset: $750,000
īˇ Royalty Fee: 5%
īˇ Advertising Fee: (Local 2.5% of gross revenues & National Cooperative Advertising 4.5% of gross
revenues)
īˇ Renewal Fee: $6,750
īˇ Term of Agreement: 20 years
Sources:
1) http://en.wikipedia.org/wiki/KFC
2) http://www.kfc.com/about/
3) http://www.kfcfranchise.com/faqs-qsr-restaurant.php
4) http://www.thefranchisemall.com/franchises/details/10004-0-kfc.htm
5) http://www.franchisedirect.com/foodfranchises/kfc-franchise-07095/ufoc/
Menu of KFC
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10. Item Name
Price(Taka)
Item Name
Price(Taka)
Chicken Snacker
100
Potato Wedges
125
Chicken Snacker box
170
Chicken rice meal
190
Strips Snack
190
Spicy Thai Chicken rice
300
Snack Box (1pic chicken
& Fries)
170
Hot Zinger meal
375/395
Popcorn Chicken
160
Zinger meal
370/390
Boneless chicken strips
200/395
Curry crunch chicken
290/575/1145/1700
Hot wings
150/290
2pcs chicken fries meal
350
Bucket meal
2350
Krushers
140/170/180/190/200
Bucket Hot& crispy
830/1250
Desserts
80-150
Hot zinger
250
Veggie zinger
210
Mixed rice
85
Chicken zinger
240
Combo 1/2/3/4/5
250/300/600/1200/999
Burgers
240/250/210
Sides
30-125
Packaged water
80-90
tea
50
Coffee
60
More menus of KFC:
Krushers
Soft Drink
Game Box
Veg Finger
Coleslaw
Fries
Zing Kong
Snacker(chicken & veggie)
Chicken Bucket
Snack Box
Box master
Corn on the cob
Sundae
Chicken Thali
Soft Twirl
Brownie Sundae
SWOT analysis of KFC
Strengths:
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11. īˇ Second best global brand in fast food industry in terms of value ($ 6 billion)
īˇ KFC customer base remained loyal to the KFC brand because of its unique taste.
īˇ Worldâs largest restaurant company in terms of system restaurants.
īˇ Chicken -- made with the same secret blend of 11 Ranksīherbs and spices highest among
all chicken restaurant chains for its convenience.
īˇ Menu variety and strong trademarks recipes.
īˇ KFC has continued to dominate the dinner and take out segment of the Industry.
īˇ Existing in the local market for years, therefore, knowing peopleâs tastes and whims.
īˇ They are ISO (International Standard Organization) certified.
Weaknesses:
īˇ Losing market share as other Chicken chain increased sales at a faster rate.
īˇ Lack of knowledge about their customers.
īˇ Question of over franchising leads to loss of control and quality.
īˇ Lack of focus on R&D.
īˇ Unhealthy food menu
īˇ High employee turnover
īˇ Lack of strong marketing efforts
īˇ The company has entered so many markets in the past in the United States that its growth
rate was about only one percent an year.
īˇ The company is said to not to pay attention to its resource and development.
Opportunities:
īˇ Introducing new products to its only chicken range.
īˇ Introducing new services and technologies.
īˇ Increasing demand for healthier food.
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12. īˇ With more investments the company can definitely make its position stronger in the food
industry
īˇ
Home meal delivery.
īˇ Employment opportunities for part time seeker especially for university goings.
īˇ
Focusing on more nutritionâs.
Threats:
īˇ Bird flu
īˇ Saturated fast food markets in the developed economies.
īˇ Trend towards healthy eating.
īˇ Local fast food restaurant chains.
īˇ Government regulations.
īˇ Change in tastes.
īˇ Currency fluctuations.
īˇ Lawsuits against KFC.
Type: Public
Traded as: SET: CPF
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13. Industry: Food and Beverage
Founded: January 17, 1978
Headquarters: Bangkok, Thailand
Key People: Adirek Sriratak, ( President & CEO)
Products: Animal Feed, Animal Breeder, Meat and Food
Parent: Charoen Pokphand Group
Charoen Pokphand Foods Public Company Limited is Thailand's largest agribusiness firm. It is
a publicly traded subsidiary of the Charoen Pokphand Group. Charoen Pokphand Foods Public
Company Limited (CPF), a company of the CP Group, is the leading agro-industrial and food
conglomerate in Thailand. The greater part of the Company production bases is in Thailand with
some operating overseas. The Companyâs core business lines are livestock and aquaculture. The
livestock operations include chicken broiler, chicken layer, duck and swine. For aquaculture
business, the two main marine animals are shrimp and fish.
C.P. Bangladesh Company Ltd. is a sister concern of C.P. Group Thailand. C.P. Bangladesh Co.,
Ltd. is incorporated in Bangladesh on 14th January 1999 doing business in the Agricultural
industry, Poultry sector. Though C.P. Bangladesh Co., Ltd is not in Bangladesh many years, but in
this shorter period it has established its own Feed mills, Breeder Farm, Hatcheries, G.P. farm, fish
feed mill all over the country. C.P. Bangladesh Co., Ltd has established with a vision âTo be a
leader in Agro-business industry in Bangladeshâ and each day it is getting closer to its vision. C.P.
Bangladesh Co., Ltd now produce Poultry feed (both layer and broiler), breeder feed, fish feed and
cattle feed, and also animal health medicine.
C.P. Bangladesh Co. Ltd. is a sister concern of C.P. Group Thailand. C.P. Bangladesh Co.
Ltd. is incorporated in Bangladesh on 14th January 1999 doing business in the Agricultural
industry, Poultry sector. Though C.P. Bangladesh Co. Ltd. is not in Bangladesh many years, but in
this shorter period it has established its own Feed mills, Breeder Farm, Hatcheries, G.P. farm, fish
feed mill all over the country. They direct invested in Bangladesh by giving the tax to government
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14. (Ministry of commerce) without any licensing and franchising. They have established a production
factory house in âHemayetpurâ and supply the materials for the fried chicken in the different
branch in Dhaka and Chittagong.
C.P. Bangladesh Company Limited was established since 1998 under operation in Agro-Industrial
and Food Business by dedication of providing high quality of animal feed mill, farming operation
and also processing tasteful, nutritional and hygienic food products under branding of ââFIVE
STAR CHICKENââ that deliver to all customers in Bangladesh. It Started on April 7, 2008 with a
mission- âKitchen of Bangladesh. In Bangladesh they have started their fried chicken business
through licensing with an amount of TK 250,000. Currently they are operating their fried chicken
business across Bangladesh with their 201 branches among them 104 branches are in Dhaka.
The Charoen Pokphand Group is the largest business conglomerate in Thailand. Its largest
subsidiary is Charoen Pokphand Foods, which achieved 116.5 billion baht in revenue in 2005,
earning a profit of 6.747 billion baht. Apart from agribusiness, the family-owned conglomerate's
interests range from retailing, as the franchisee of Thailand's 7-Eleven stores, to
telecommunications, as the owner of True Corporation, a mobile telephone service provider,
Internet service provider, and cable television company. CP Subsidiaries also include PRC
registered Super Brand Mall Lotus center chain.
The company has grown into a global business, with more than 250 subsidiaries in 20 countries,
including China, where it is known as the Chia Tai Group.
CP fried chickenâs methodologies of the business in Bangladesh are as follows:
īˇ This is a Foreign Direct Investment (FDI).
īˇ Operating as a licensing company in Bangladesh.
īˇ Initial licensing Fee: TK 250,000
īˇ Renewal Fees: Not disclosed.
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16. Item Name
Price (Tk)
Item Name
Price (Tk)
Jumbo set
790
Wing
60
Party set
460
Happy hot Dog
60
Breast
115
Massala chicken
55
Thigh
90
Spicy chicken
50
Leg
60
Chicken ball
25
Chicken sausage
25
Hot wings
25
SWOT analysis of CP fried chicken
Strengths:
īˇ Low price compare to KFC & Pizza Hut in Bangladesh.
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17. īˇ More branches than KFC & Pizza Hut in Bangladesh.
īˇ More convenience than KFC & Pizza Hut in Bangladesh
īˇ Horizontal raw material sources in Bangladesh.
īˇ Sound financial situation and international turnover.
īˇ Food attracts people of various ranges from young to old.
īˇ Existing in the local market for years, therefore, knowing peopleâs tastes and whims.
Weakness:
īˇ Donât have exclusive decorations compare to pizza Hut & KFC.
īˇ Loyal customers are feeling that the satisfaction of the pizzas is declining.
īˇ Lack of monitoring & controlling system.
īˇ Lack of focus on R&D.
īˇ Lack of strong marketing efforts.
īˇ Lack of knowledge about their customers.
īˇ Lack of menu varieties.
īˇ No sitting options like Pizza Hut & KFC.
Opportunities:
īˇ They can reduce their prices because of their horizontal sources of raw materials.
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18. īˇ With more investments the company can definitely make its position stronger in the food
industry
īˇ Home meal delivery.
īˇ They can attract more people with their consisting lower prices.
Threats:
īˇ Bird flu.
īˇ Health conscious people.
īˇ Local fast food restaurant chains.
īˇ Government regulations.
īˇ They need have more product offerings compare to KFC & Pizza Hut
īˇ Their services should be improved.
Franchising
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19. Franchising is the practice of using another firm's successful business model. The word 'franchise'
is of Anglo-French derivation - from franc - meaning free, and is used both as a noun and as a
(transitive) verb. For the franchisor, the franchise is an alternative to building 'chain stores' to
distribute goods that avoids the investments and liability of a chain. The franchisor's success
depends on the success of the franchisees. The franchisee is said to have a greater incentive than a
direct employee because he or she has a direct stake in the business.
Essentially, and in terms of distribution, the franchisor is a supplier who allows an operator, or a
franchisee, to use the supplier's trademark and distribute the supplier's goods. In return, the
operator pays the supplier a fee.
Thirty three countries, including the United States, and Australia, have laws that explicitly regulate
franchising, with the majority of all other countries having laws which have a direct or indirect
impact on franchising.
Foreign Direct Investment :( FDI)
According to the International Monetary Fund, foreign direct investment, commonly known as
FDI, "... refers to an investment made to acquire lasting or long-term interest in enterprises
operating outside of the economy of the investor." The investment is direct because the investor,
which could be a foreign person, company or group of entities, is seeking to control, manage, or
have significant influence over the foreign enterprise.
Licensing:
Licensing is the process of leasing a legally protected (that is, trademarked or copyrighted) entity â
a name, likeness, logo, trademark, graphic design, slogan, signature, character, or a combination of
several of these elements. The entity, known as the property or intellectual property, is then used in
conjunction with a product. Many major companies and the media consider licensing a significant
marketing tool.
Interpretations of our analysis
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20. Yummy! Letâs go for Pizza Hut or KFC or CP. Yes, these words are becoming very common for
city people in Bangladesh. What more can somebody ask for! In the context of Bangladesh,
whenever we talk about party or to hang around with friends or families in many cases Pizza Hut
or KFC or CP gets priority among all other choices we have. Though their food items are little bit
more expensive than our traditional foods, but still we love it. This time we are not having any of
their food items, we are just going to have an analysis of these three companies.
For the purpose of our analysis, we had to gather informationâs both from the primary and
secondary sources. Collecting informationâs from the secondary sources were easy compare to
primary sources. While we went to collect raw data from the primary sources, we found the
managers of those restaurants very uncomfortable of sharing any informationâs and that made our
journey very difficult. After being refused from them, we went to their corporate offices but still
got denied. Since we had to complete our analysis, somehow we did manage some of the
informationâs about these companies and which we believe can be helpful for concluding our
analysis.
From the informationâs we have found, both Pizza Hut & KFC were originated from U.S.A, and
currently Transcom Foods Limited (TFL) had brought both Pizza Hut & KFC into Bangladesh
though franchising and off-course with the help of worldâs largest restaurant company named
âYum! Restaurants Internationalâ Itâs kind of revolution for the food industry in our country.
Transcom Foods Limited (TFL) started its journey in 2003 as a franchisee of Pizza Hut, the first
International Chain Restaurant in Bangladesh, and went on to sign the contract to become the
franchisee of Kentucky Fried Chicken (KFC) in the year 2006. . In a span of ten years, TFL has
opened 5 Pizza Hut and 11 KFC outlets so far throughout the country. Very surprisingly their
popularity is increasing in our country day by day even though their product offerings are
different. The way they are dominating the worldâs restaurant industry through their product and
service offerings, similarly they are dominating in our country as well. Most of the time, they are
trying to reach the higher income people. Whereas CP (Charoen Pokphand) is another food
company which has targeted all classes of people in our country. Basically CP has originated from
Thailand and started itâs business in our country as an agro based industry. But later on, in the year
of 2008, they had expanded their business in food industry through licensing. In Bangladesh they
have started their fried chicken business through licensing with an amount of TK 250,000.
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21. Currently they are operating their fried chicken business across Bangladesh with their 201
branches among them 104 branches are in Dhaka. Even though they are having more branches
compare to Pizza Hut & KFC, but their product offerings and service quality especially, their
locations and the environments are not that good like Pizza Hut & KFC. Their internal and external
decoration is also different and looks less exclusive than Pizza Hut & KFC. But CPâs food prices
are way cheaper than Pizza Hut & KFC. Moreover, CPâs initial investments and expenses are less
than Pizza Hut & KFC. From the above mentioned analysis, we can say that, both Pizza Hut &
KFC are fulfilling peoples demand by assuring their product & service qualities as well as
environments whereas, CP is not covering any of those issues rather they are more focusing on
cheaper product price.
Comparative analysis of these three companies:
Company
Licensing
Initial
Cost
Pizza Hut
Franchising
Cost
Investment
High
N/A
Very High
Location
Loyalty
Popularity
Very High
N/A
Very High
Service
Price
Moderate
Very
High
Very
High
KFC
Product
Moderate
Level
Excellent
High
Very
Very High
High
Customer
High
&
upper
Excellent
High
middle
High,
upper
middle
CP
N/A
Low
Moderate
Excellent
Moderate
Moderate
Moderate
Low
&
middle
Middle
&
low
Company
Product
Product
Product
Availability
Home
Inspection
Environment
delivery
Customer
quality
Variety
offerings
Pizza Hut
KFC
Excellent
Excellent
Various
Various
Active
Very
Very Few
Few
Yes
Yes
Frequent
Frequent
Excellent
Excellent
Satisfaction
Very Good
Very good
CP
Good
Limited
active
Stable
Available
N/A
Les
Moderate
Good
Frequent
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