3. Fast Food Restaurant Chain
KFC UK
Over the last years.
Organisational culture
HRM contribution
Workplace effectiveness
4. • Founded in 1930 by Colonel Harland Sanders
at north Kentucky.
• First franchise opened in 1952 at salt lake city
Utah.
• Sanders sold the company in 1964 to group of investors
led by John Y. Brown Jr. and Jack C. Massey.
• First UK outlet opens in Lancashire in 1965.
5. Fig:- Number of KFC restaurants opening worldwide :
From 2010 to 2022.(Statista, 2023)
6. Fig:- KFC brand awareness, usage, popularity, loyalty, and buzz
among restaurant chain customers in the UK (Statista, 2022)
7. • The HR department is concerned about the recruitment of highly qualified
staffs.
• Employee training is vital to KFC's success. While the organization has a
robust training program, maintaining consistency as well as keeping up
with new technology and trends are issues.
• Reduced productivity leads to decreased employee engagement. Cost rises
in tandem with productivity, and high costs imply high output and increased
turnover.
• Employees may seek professional growth elsewhere, which may result in a
lack of career progression prospects and turnover.
8. • An organization's members share a set of ideas,
values, and presumptions that make up its
organizational culture (Schein, 1985).
• Additionally, it refers to the enterprise's long-term
growth process, which is the spiritual pillar for all
members and is created by the accumulation of values
accepted by the majority of the enterprise's
employees.
• An individual's perception, thought process, and
behavior in a social setting are all modelled by culture.
Organisational Culture
Fig: Organisational cultural model
9. Cultural Benefits
The KFC culture offers several
advantages, including :
1. Access to employee discounts up to
25 percent in their restaurants.
2. They provide private Healthcare and
Life assurance also with flexible
working hours
3. Has wide range of training courses
available to the employees.
10. Improper safety measures
During a hearing at Teesside Magistrates Court on
November 23, 2016, KFC pled guilty to two
breaches under the Health and Safety at Work etc
Act 1974. Several burns and injuries pains were
suffered by the employees.
Low supply of chicken
From February 2018 , most of the KFC outlets
offered limited menu due to non-regulated of
supply of chicken. This threw the employee in less
working hour zone, impacted furtherly by the
closing of KFC outlets for months in UK.
11. Most KFC employees are flexible workers and do not
enjoy the same perks as permanent employees. They
are dealing with a multitude of problems.
• There is no dental or medical insurance for low position workers
• No PTO for lower grade employees
• No Sick Leave to low post employees
• No Maternity Leave until he or she is at manager level.
12. Recommendations
KFC needs to :
Develop good and secure safety measures to eliminate conflicts in the workplace.
Provide the employees proper guidance and good direction from superior management.
They should reconnect with Bidvest which was the old supplier of the chicken.
Clear the social media campaigns by apologizing to the public and regain trust.
13. Organisational Effectiveness
KFC needs to :
Enable the part-time workers to have same benefits as of the permanent employees
Enable health insurances policy for all crew members and workforce.
Provide sick leave to the employees facing health problems and fatigue
Provide PTO to low-level employees or those under manager-level.
14. Reference List
Christopher McFadden (2023). The History of KFC: Their Past and the Tech Building Their Future.
https://interestingengineering.com/culture/the-history-of-kfc-their-past-and-the-tech-building-their-
future
Growjo.com (2023). KFC UK and Ireland Revenue and Competitors.
https://growjo.com/company/KFC_UK_and_Ireland
Laurence Kilgannon (2017). SALES CLOSE ON £500M AT KFC’S UK OPERATION.
https://www.insidermedia.com/news/south-east/sales-close-on-500m-at-kfcs-uk-operation
Richard Priday (2018). The inside story of the great KFC chicken shortage of 2018.
https://www.wired.co.uk/article/kfc-chicken-crisis-shortage-supply-chain-logistics-experts
Niamh Carrol (2022). KFC UK sales fall as inflation crisis bites. https://www.marketingweek.com/kfc-
uk-sales-fall-inflation/
Steven Humphreys (2023). why the right way forward is important to KFC.
https://www.nfuonline.com/updates-and-information/pip-2022-23-why-the-right-way-forward-is-
important-to-kfc/
15. Reference List
Reed.co.uk (2023). Working at KFC UK and Ireland. https://www.reed.co.uk/company-profile/kfc-uk-and-ireland-496
Katie Pathiaki (2017). KFC fined £1m for health and safety offences. https://www.thecaterer.com/news/restaurant/kfc-
fined-1m-for-health-and-safety-offences
Statista (2023). Number of Kentucky Fried Chicken restaurants worldwide from 2010 to 2022.
https://www.statista.com/statistics/256793/kfc-restaurants-worldwide-by-geographic-region/
Statista (2023). KFC brand awareness, usage, popularity, loyalty, and buzz among restaurant chain customers in the
UK in 2022. https://www.statista.com/forecasts/1335595/kfc-restaurant-chains-brand-profile-in-the-uk
Clint Rainey (2018). Okay, KFC’s Ad About Its Chicken Shortage Is Pretty Great.
https://www.grubstreet.com/2018/02/kfc-apologizes-for-uk-chicken-shortage-with-fkc-we-are-sorry-ad.html
Andy Robinson (2019). We went behind the scenes at a Kent KFC and found out how their chicken is really made.
https://www.kentlive.news/whats-on/food-drink/went-behind-scenes-kent-kfc-3054723
Editor's Notes
This presentation slide-pack provides a summary of my client company, a list of the organization's major HR issues, and an analysis of one central theme. a problem that is having an impact on the organization's workplace and offers suggestions on how the problem could be solved.
I briefly describe KFC UK, one of the most well-known fast-food chain restaurants, in my client company background.
Their mission is to raise and sustain the standard of the fast-food sector while capturing the fast-food market. Even though KFC has consistently won Britain's Top Employer for three years running, it has also been named one of the best organisations in the UK. In terms of employee performance, it is now experiencing some problems.
To better understand how KFC's leadership influences employee performance, a critical analysis of the research is conducted.
In the presentation, I discuss the key challenges that HR will face over the next five years and the crucial role that organisational culture plays in shaping how HR operates today. I close by offering suggestions for how my client might improve its organisational culture and how doing so would increase the effectiveness of its firm.
Amid the Great Depression, Harland Sanders, a businessman from Corbin, Kentucky, started selling fried chicken from a small roadside stand. In 1952, the first "Kentucky Fried Chicken" franchise opened its doors in Utah thanks to Sanders' recognition of the potential of the restaurant franchising idea. By threatening the hamburger's long-held monopoly on the fast-food market, KFC popularised chicken and diversified the sector.
Sanders, who was getting older, was overwhelmed by the company's fast development, so in 1964 he sold it to a group of investors headed by John Y. Brown, Jr., and Jack C. Massey.
By the middle of the 1960s, KFC had opened restaurants in the UK, Mexico, and Jamaica, making it one of the first fast food businesses to go global.
On the company website, it is said that KFC has 30,000 outlets and is available in 110 different countries and territories.
This graph depicts the rising number of KFC restaurants that opened globally between 2010 and 2022, which came to a total of 26.9 thousand. (Statista 2023)
One of the most recognisable fast food restaurant brands in the world is KFC thanks to its international growth. Nevertheless, despite its strong year-over-year performance, it fell short of other market-leading QSR businesses.
The pre-tax profit for KFC UK increased from £56 million to £59 million between November 30, 2015, and December 4, 2016, on sales that increased from £465 million to £480 million.
The current anticipated yearly income for KFC UK and Ireland is $2.8B. In the UK and Ireland, KFC UK and its franchisees operate hundreds of restaurants. According to the company's financial statements, its average personnel count for the time period climbed by 2.7% to 8,648. The additional personnel were required to satisfy demand and aid KFC in raising the bar for customer service.
In the UK, restaurant chain patrons' brand recognition, usage, favourability, loyalty, and buzz are depicted in this graph for the year 2022.
In the UK, 97% of restaurant chain consumers are aware with the KFC brand. The notion of assisted brand identification was used to conduct the poll, displaying respondents both the business's written name and emblem.
KFC is used by 51% of UK clients of restaurant chains overall. 53% of those who are familiar with the brand, or 97%, actually use it.
An estimated 34% of patrons of a UK restaurant chain in August 2022 had heard of KFC via recent media coverage, social media posts, or advertising. Because just 35% of the 97% who are familiar with the brand are aware of KFC, there is now significant commotion in the UK over the fast-food chain.
Recruitment and Retention - KFC's HR must find effective strategies to draw in a wide pool of employment candidates to meet future difficulties. The KFC franchise is in the fast-food business, which has a low staff retention rate due to rapid employee turnover. This is a serious obstacle for KFC's HR department.
Training of employee - Maintaining consistent training across all sites and regions is challenging due to KFC's global presence in various nations and cultures. Another challenge for KFC is incorporating developing technology and trends. Additionally, it has trouble maintaining continuity and keeping up with emerging technology and fashions.
Turnover of employees - The belief that fast-paced occupations are competent and transitory is one of the major problems KFC has with employee turnover. Numerous employees might regard their position at KFC as an initial step to other positions or as a short-term career development. Such a notion may lead to a lack of funding for the company, decreased motivation, and eventually excessive turnover.
Career management - Understanding that fast-paced occupations are for bright people and not a method to create a career is Kentucky Fried Chicken's main issue with staff management. Such emotions can easily result in a lack of resources for employees inside the organisation and decreased enthusiasm to develop their work at KFC.
The common views, values, and presumptions inside an organisation make up the complex system known as organisational culture, which controls how its people behave. The fundamental presuppositions, convictions, and ideals that underlie this psychological and social milieu are part of what makes it so special.
KFC's vision statement is brief and direct. This indicates that the business did not convey its perspective and attitude to the public and important stakeholders through lengthy conversations and discussions. The vision statement needs to be clear and thorough it ought to convey the essence of the company and its future goals to assist stakeholders in understanding its business tenets and business plan.
The KFC management is aware of how crucial it is to convey the company's basic principles so that every employee can embrace them and adjust their behaviour accordingly. But employees don't believe they have a chance to influence or participate in workplace culture.
'HR leaders should discover methods to engage temporary workers while making employees feel as if they are a part of the organisation.
Working for KFC has several advantages since they offer flexibility in their shift times, which is great for high school students. The worker could choose between the morning and night shifts. The workers may easily switch their shift to another day and won't be penalised if they need to cancel.
The worker will be given paid time off (PTO) and vacation after one year of employment. Most workers receive only 37–40 hours of paid vacation each year.
Employees are given one complimentary meal every shift from the restaurant. On the property, they have to eat it. The typical shift is four hours long, so if an employee works a whole day, they can receive up to two meals.
Employee benefits will include a discount in addition to free lunches. For food goods purchased from the store, a 50% discount is included.
Following a six-month probationary period, KFC employees are eligible for an incentive programme. A typical yearly benefit of $2,185 is intended for participants in the programme.
According to polls, the main problem the majority of KFC employees face is the absence of safety precautions. The likelihood that this employee worry will have a negative effect on KFC's productivity is the highest. Long work hours are another issue that worries the staff at KFC. The employees began to feel uncomfortable and insecure at work since the primary problem is the absence of adequate safety measures.
Most of the KFC UK locations were out of chicken in February 2018. These shops had to close because the firm that owned them sold fried chicken. The alteration of the transportation contract was the root cause of these issues. Bidvest Logistics was the previous carrier for KFC UK; now it is DHL. This massively impacted the working hours of the Employees of the KFC UK outlets which led in major disruptions in wages and job leaving decisions.
To manage social media campaigns In response, KFC published full-page newspaper adverts that featured a chicken bucket with the KFC emblem transposed to read "FCK."
Many alleged that there is no dental or health insurance available to crew members. They only gave full benefits, health insurance, and dental insurance for managers and other work designations.
Some workers claim that after a year of employment with the corporation, they are not entitled to paid time off. Cashiers, fast restaurant workers, and some shift supervisors and supervisory roles typically do not receive offers. However, team captains, assistant managers, and customer service agents claim they receive paid time off.
The lack of sick leave for employees at KFC is one of its main disadvantages. If they are ill, they must use their accrued PTO days from the year.
KFC does not offer maternity leave, thus a worker who is expecting a kid cannot rely on that benefit. Anyone working below a general manager often isn't eligible for maternity leave. An employee who is pregnant will not be granted time off for doctor's appointments or schedule changes either. Due to this most of the employees go against the policies.
The analysis revealed that KFC had not given its staff any safety precautions. The management may secure the safety of the employees and, it should enhance their performance on the job by putting accident prevention measures and other safety standards into place in the workplace.
Always having a backup plan would help KFC deal with situations like these in the future. KFC also had to deal with a gravy supply issue immediately following this catastrophe. KFC shouldn't rely on any new businesses without first understanding their workload. Because managing demanding tasks will always be challenging for any new business or technology.
KFC must improve how they hire its staff. Hiring a huge group of team members all at once would always be dangerous. Supply chain management must always be updated.
According to the statistics, most of the employees thought the leadership methods used by the UK branch of KFC were subpar or insufficient. I would advise my customer to improve these crucial elements by integrating fresh cultural practices.
KFC UK may improve itself by assessing the working circumstances for employees by implementing these suggestions. This will help KFC UK expand its understanding of the workplace.
The HR staff at KFC must create successful retention plans that put emphasis on employee happiness, growth, and engagement. For employees to develop and rise within the business, it may also entail offering continual training and development opportunities.