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Fred Deluca opened the first Subway sandwich shop in 1965 to fund his medical school tuition, joining with friend Dr. Peter Buck who invested $1,000. By 1974 they had 16 locations in Connecticut but realized 32 stores was unrealistic, so they began franchising and grew the Subway brand to over 34,000 locations worldwide, making it the largest submarine sandwich chain. Franchisees were concerned about recent price changes to $5 footlongs impacting their profits, but Subway emphasizes a family culture and effective change processes to balance corporate goals with local business effects.
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Thank you,
Penn Foster Instructor
Kentucky Fried Chicken and McDonald’s are the two main fast food global companies in the world. These two companies have used various marketing approaches to expand into China and other parts of the world. These strategies have led to the growth of both companies. McDonald’s was founded in the year 1995 in the United States, when it served its customers with French fries and hamburgers. KFC was founded in the year 1952 in the United States (which is one brand of Yum). It serves its customers with chicken that has a unique taste. McDonald’s made more sales than KFC at first. Later, both KFC and McDonald’s expanded to China, and the sales made by these two companies have been reversed. KFC has progressed more efficiently in China than McDonald’s. The difference that came in between these two companies was their marketing approaches in China. The differentiation and similarity between McDonald’s and KFC in China commenced a long time ago. KFC established its first branch in China in the year 1987. At that time, it was the only western fast food provider in the country (Hendrikse 78). Currently, it has four thousand five hundred and sixty-three branches hence considered the biggest food outlet in the country. The first McDonald’s branch in the country was opened in the year 1990, and it has two thousand and three branches in the country. KFC expanded to China earlier than McDonald’s and that was its first strategy.
The second difference in the strategies of the two companies was their products. KFC strategized in offering chicken products to its customers. Standard production levels were used by KFC and they sold cheap western products which favored the local people. Their menu changed every now and then to meet the customer's needs (Kurtz, David and Louis 209). Some foods were offered permanently while others were temporary on the menu. KFC also had a secret recipe that it used to prepare its dishes. McDonald’s sells mainly beef and hamburgers. People of China prefer chicken over beef. Culturally, Chinese keep more chicken as compared to the number of cattle. This i.
KENTUCKY FRIED CHICKEN CASE STUDY OF KFC .docx
KENTUCKY FRIED CHICKEN
CASE STUDY OF KFC:
ESTABLISHMENT OF A SUCCESSFUL GLOBAL BUSINESS MODEL
By the mid 1950s, fast food franchising was still in its infancy when Harland Sanders
began his cross-country travels to market “Colonel Sanders’ Recipe Kentucky Fried Chicken.”
He had developed a secret chicken recipe with eleven herbs and spices. By 1963, the number
of KFC franchises has crossed 300. Colonel Sanders, at 74 years of age, was tired of running the
daily operations and sold the business in 1964 to two Louisville businessmen—Jack Massey and
John Young Brown, Jr.—for $2 million. Brown, who later became the governor of Kentucky,
was named president, and Massey was named chairman. Colonel Sanders stayed in a public
relations capacity.
In 1966, Massey and Brown made KFC public, and the company was enlisted on the New
York Stock Exchange. During the late 1960s, Massey and Brown turned their attention to
international markets and signed a joint venture with Mitsuoishi Shoji Kaisha Ltd. In Japan.
Subsidiaries were also established in Great Britain, Hong Kong, South Africa, Australia, New
Zealand, and Mexico in the late 1970s. Brown’s desire to seek a political career led him to seek
a buyer for KFC. Soon after, KFC merged with Heublein, Inc., a producer of alcoholic beverages
with little restaurant experience and conflicts quickly arose between the Heublein management
and Colonel Sanders, who was quite concerned about the quality control issues in restaurant
cleanliness. In 1977, Heublein sent in a new management team to redirect KFC’s strategy. New
unit construction was discontinued until existing restaurants could be upgraded and operating
problems eliminated. The overhaul emphasized cleanliness, service, profitability, and product
consistency. By 1982, KFC was again aggressively building new restaurant units.
In October 1986, KFC was sold to PepsiCo. PepsiCo had acquired Frito-Lay in 1965, Pizza
Hut in 1977 with its 300 units, and Taco Bell in 1978. PepsiCo created one of the largest
consumer companies in the United States. Marketing fast food complemented PepsiCo’s
consumer product orientation and followed much the same pattern as marketing soft drinks
and snack foods. Pepsi soft drinks and fast food products could be marketed together in the
same restaurants and through coordinated national advertising.
The Kentucky Fried Chicken acquisition gave PepsiCo the leading market share in three
of the four largest and fastest growing segments in the U.S., quick-service industry. By the end
of 1995, Pizza Hut held 28% of the $18.5 billion, U.S. pizza segment. Taco Bell held 75% of &5.7
billion Mexican food segment, and KFC held 49% of the $7.7 billion U.S. chicken fast food
segment.
Japan, Australia, and the United Kingdom accounted for the greatest share of the KFC’s
international expansion during the 1970s and 1980s. During the 1990s, ot ...
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History Of Pizza Hut
During the past few decades, Pizza Hut has been able to develop an excellent reputation in the minds of consumers. The reputation helped in achieving respect from the experts within the industry and its consumers. Pizza Hut believed in providing value to its customers. This value includes great service experience, maintained quality and continuous innovation with their offerings. Pizza Hut is a brand which has changed the mindset. Pizza being an specialty as Italian product, has now transformed into the mass market product . The quality of the brand relies on the employees objectives too. The objectives of employees at Pizza Hut are aligned with the organizational goals, resulting with an acceleration in the growth platform of Pizza Hut.
Kfc mrktng 2003
This document provides an overview of KFC, including:
1. A brief history of KFC, founded by Colonel Harland Sanders in the 1930s in Kentucky and now operating in over 80 countries.
2. KFC's introduction to India in 1995 and its goal of 100 outlets in India by 2010 through investments of Rs. 200-300 crore.
3. KFC's menu which focuses on fried chicken and sides, and its aim to provide consistent quality and customer service according to its CHAMPS philosophy.
Pizzeria hut Digital Menuwwwwwwwjjjdjnnnmjjj
Pizza Hut was founded in 1958 in Wichita, Kansas by brothers Frank and Dan Carney. It has since expanded to over 100 countries with various locations and distribution methods. Pizza Hut's mission is to become the most famous restaurant worldwide, providing excellent service and quality according to their P.E.A.R.L. values of passion, energy, recognition, accountability, and listening. They offer a variety of pizza, appetizers, pastas, desserts, and beverages while utilizing delivery, dine-in, and online ordering to reach customers.
Macdonalds
McDonald's has served customers around the world since 1955 and helped shape the fast food industry. Key events in McDonald's history include Ray Kroc becoming the first franchisee in 1954 and opening his first restaurant in 1955. McDonald's investment in India raised food production standards and increased business for Indian suppliers. McDonald's success in India was achieved by sourcing all products locally from over 38 long-term suppliers.
McDonald's
McDonald's began in 1940 as a barbecue restaurant operated by the McDonald brothers in California. In 1955, Ray Kroc franchised the McDonald brothers' restaurant and grew it to over 700 locations across the US within 10 years. McDonald's core brand values center around serving hot, high quality food at great prices quickly and conveniently. Over the years, McDonald's has expanded its menu internationally and introduced Ronald McDonald to connect with families. It has also supported charitable causes like the Ronald McDonald House. Currently, McDonald's is focusing on regional tastes, healthier options, and innovations like McCafe and McDelivery to remain successful.
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Subway is the largest fast food franchise in the world, with over 37,000 locations across 100+ countries. It was founded in 1965 in Bridgeport, Connecticut by Fred DeLuca and Peter Buck. Subway focuses on providing customizable submarine sandwiches and allows customers to choose their sandwich toppings. While it has experienced success through its large global presence and emphasis on fresh ingredients, Subway also faces challenges like inconsistent quality across stores and changing customer preferences toward healthier, locally-sourced options.
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App7wrighty
- 4. Culture of the Organization SUBWAY = FAMILY
- 5. Subway Changes Its Prices
- 6. Price Change Affects Franchisees’ Bottom Line
- 7. Overall Effectiveness of the Change Process
- 8. Making Change Work $5.00 Foot long Franchisees’ Profits
- 9. Conclusion
Editor's Notes
- http://www.subway.com/subwayroot/about_us/history.aspx
- Click on the top speaker first and the continued narration is on the bottom speaker