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.

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.