Tuesday, November 5, 2013

KFC Australia

KFC Australia

KFC (Kentucky Fried Chicken) Australia is a fast food restaurant that was started in 1968 by Bob Lapointe from Canada (Clark &Vemuri, 2008.pp 49-64). It is a member of Yum Restaurants International, a company which operates several restaurants across the world.The main objectives of KFC are to expand its business across the world and provide better and faster customer service. Its mission is to sell food in a fast, friendly environment that appeals to pride conscious, health minded consumers.(Market Line, 2012, pp 1-33) The main aim of fast food operations is usually to provide convenient and fast service to the customers. This essay gives a situation analysis of KFC Australian and its operations.

The first restaurant was opened at Guildford in Sydney, Australia in 1968. It tarted with small staff size of 25 employees on. The company currently has more than 600 outlets in Australia and New Zealand, some of them being franchised while others are owned by the company. The number of employees has increased from 25 to over 12000 in Australia and 3200 in New Zealand.(Market Line, 2012, pp 1-33)It has non-traditional units within shopping malls, airports, stadiums, amusement parks, office buildings, universities and mobile units. The company has built a strong employee loyalty by applying Colonel Sander`s laid back approach where employees enjoy pension and help in other non-income benefits.

KFC offers the best chicken meals and burgers across the country. The company buys the naturally grown chicken from reputable suppliers in Australia and they are prepared by the highly trained cooks. A mono-saturated type of fat called canola oil which originates from traditional canola crops grown by Australian farmers is used in cooking.(Howieson, 2011, pp3-13) The company uses the secret recipe for advertising and setting itself apart from the competitors.

It was the first company to start fast food operations thus gaining a strong brand recognition and good reputation. The customers have become sensitive on a balanced diet and they are demanding service in non-traditional places.KFC is continuously adding variety to the menu by introducing dessert and buffet to its restaurants which mainly offer fried foods.(Market Line, 2012, pp 1-33)It chanced is logo from Kentucky fried Chicken to KFC as a strategy of reversing its image which portrayed it as a fried chicken restaurant. KFC also serves lunch and dinner buffets to encourage customers to dine from their restaurants instead of taking the food away.

KFC offers both fried and non-fried chicken-on-the-bone products. They have special names for its products, such as; Kentucky grilled chicken and Extra Tasty Crispy. KFC also offer chicken sandwiches, Colonel`s Crispy Strips, Popcorn chicken, chunky chicken pot pie, and KFC Famous Bowls. Healthier products, such as; Honey BBQ, Rotisserie Chicken and Oriental wings besides the original fried chicken.(Clark &Vemuri, 2008.pp 49-64) These varieties of items are the strongest selling point. Biscuits, coleslaw, mashed potatoes and gravy and corn and potato wedges are available in KFC outlets.

KFC provides fast food services to a wide range of customers in convenient settings. Most of the stores are located within busy centres. Many people in Australia are engaged in employment and businesses with busy schedules.(Howieson, 2011, pp3-13) This has led to most families opting to take meals away from home due the limited time. As a result, fast foods have become the most convenient places for busy workers, travellers and families to take their meals. KFC is one of the leading providers of quality meals with many customers across the world. It has restaurants in most parts of the country and its services are standardized in every outlet to ensure consistence. The main focus of the company is to offer quality service that satisfies customer needs and provide comfort.

KFC provides nutritional information on its menu items to assist customers make informed choices about what they buy.(Market Line, 2012, pp 1-33) This information is updated on a regular basis according to the changes in the menu. Customers can access the information over the internet and on brochures available in all its restaurants. The company practices responsible advertising by not advertising during children`s programs. It also supports dietery choices for all categories of people at all ages. The company also gives health tips and the need to exercise.

KFC Australia had the highest profits as compared to other countries making it the largest international company.(Wilkie, 2007, pp 83-87) The company has adopted ways of increasing profitability by reducing overhead costs, increasing efficiencies and improving customer service. The restaurant also ensures cleaner restaurants, faster and friendlier service and continued high quality products. It has met the changing demands of the clients

The company is enjoying from the economies of scale due to the high number of restaurants operating. It is able to expand quickly at a lower cost through franchising and is capitalizing on the increased customer base by offering a wider menu.(Market Line, 2012, pp 1-33) Advertisement is done collectively thus reducing the overall cost. The company has launched the Facebook campaign with the main aim of drawing people to the restaurant which has suffered decline since 2007. This campaign was advertised in print media, TV and radio. People are engaged in contests and the winners are rewarded.

The fast food industry in Australia declined in 2011 and moderate growth is predicted to take place between 2012 and 2015.(Howieson, 2011, pp3-13) The market forecast indicates the growth will decelerate for a period of five years from 2011-2016. This is due to the overall reduction in the annual growth rate in the industry as compared to other countries like China and Japan. The Australian fast food industry reduced by 0.4% in the year 2011.

The level of competition is very high in Australia. The leading companies include; Domino`s Pizza, Hungry Jacks, McDonald’s and Burger kings. Most of the fast food restaurants have started offering new menu items. McDonald’s has introduced McChicken sandwich which is continuously gaining popularity.(Wilkie, 2007, pp 83-87) Domino`s has added chicken wings to its menu while Jack in the Box has introduced chicken and teriyaki with rice. On the other side, Pizza Hut has introduced marinated, rotisserie-cooked chicken.

Chain companies are focused on high volume by opening several branches through franchising while independent companies are either hiring more staff or extending the hours of operation.(Wilkie, 2007, pp 83-87)There is price competition between players in the fast food industry in an effort to lure customers. The greatest form of competition is through the brand names. A company such as MCDonalds spendsa lot of money in advertising their products to create a strong brand name. There is also indirect competition from close substitutes. The sale of frozen re-heatable food offers a cheaper option as compared to a fast food operation. The fast food is also said to be unhealthy due to many fried foods it offers, thus many people are buying from food retailers.