SWOT Analysis of KFC 2022

Last updated: July 11, 2022 by Ovidijus Jurevicius

This is Kentucky Fried Chicken (KFC) SWOT analysis. For more information on how to
do a SWOT analysis please refer to our article.

KFC is a fast food restaurant chain, which specializes in fried chicken. It is the world’s
largest fried chicken chain with over 25,000 outlets in 145 countries and territories
as of July 2022. You can find more information about the business in its official
website or Wikipedia’s article.

Company Background

Name KFC (Kentucky Fried Chicken)

Founded March 20, 1930

Logo

Industries served Restaurants, Fast Food

 Geographic areas Worldwide
served

Headquarters U.S.

Current CEO Sabir Sami

Revenue N/A

Profit N/A

Employees N/A

Parent Yum! Brands

McDonald’s Corporation, Burger King Worldwide Inc., Subway, Wendy’s

Main Competitors
Company and many others.

SWOT

Strengths Weaknesses

1. Second best global brand in fast food industry in terms of value ($ 6 billion) 1. Untrustworthy suppliers
2. Original 11 herbs and spices recipe 2. Negative publicity
3. Strong position in emerging China 3. Unhealthy food menu
4. Combination of KFC – Pizza Hut and KFC – Taco Bell 4. High employee turnover
5. KFC is the market leader in the world among companies featuring chicken as 5. Lack of strong marketing
their primary product offering efforts

Opportunities Threats

1. Increasing demand for healthier food 1. Saturated fast food markets in the developed
2. Home meal delivery economies
2. Trend towards healthy eating
3. Local fast food restaurant chains
 Opportunities Threats

3. Introducing new products to its only chicken 4. Currency fluctuations

range 5. Lawsuits against KFC

Strengths
1. Second best global brand in fast food industry in terms of value ($ 6
billion). KFC is known by many and is a trustworthy brand in many
countries mainly due to its early franchising and international expansion.
2. Original 11 herbs and spices recipe. KFC original chicken recipe is a
trade secret and a source of comparative advantage against firm’s
competitors.
3. Strong position in emerging China. KFC receives half of its revenue
from China, where it operates more than 4,000 outlets. KFC position in
China is one of its main strengths as China’s fast food market is growing
steadily.
4. Combination of KFC – Pizza Hut and KFC – Taco Bell. KFC partnership
with other Yum! Brands yields some advantage as the restaurant can
offer items from its partners it doesn’t have itself and satisfy more
customers’ needs.
5. KFC is the market leader in the world among companies featuring
chicken as their primary product offering. KFC has positioned itself
clearly among other fast food chains bearing its famous slogan and
trademark chicken products.
Weaknesses
1. Untrustworthy suppliers. Over the years, KFC has been contracting
suppliers, which supplied contaminated poultry to KFC or were
mistreating chicken, thus resulting in falling sales and damaged
reputation.
2. Negative publicity. KFC receives much criticism from PETA over the
conditions chickens have been raised. Furthermore, it received bad
publicity for selling chicken wing with kidney. There are many more or
less bad news from KFC, which damage firm’s reputation significantly.
3. Unhealthy food menu. KFC menu is largely formed of high calorie, salt
and fat meals and drinks. Such menu offering prompts protests by
organizations that fight obesity and hence, decreases KFC popularity.
Consumers also often opt out for healthier choices.
4. High employee turnover. Employment in KFC is a low paid and low
skilled job. It results in low performance and high employee turnover,
which increases training costs and add to overall costs of KFC.
Opportunities
1. Increasing demand for healthier food. While demand for healthier
food increases, KFC could introduce more healthy food choices in its
menu and reverse its weakness into strength.
2. Home meal delivery. KFC could fully exploit (it test deliver services now)
this opportunity and reach more customers.
3. Introducing new products to its only chicken range. KFC could
introduce new meals to its menu and offer pork, beef or only vegetarian
meals, which would target wider consumer group and would result in
more costumers.
Threats
1. Saturated fast food markets in the developed economies. The fast
food market in the developed countries is already overcrowded by so
many fast food restaurant chains and this already proves to be a threat
to KFC as it finds it hard to grow in the developed economies.
2. Trend towards healthy eating. Due to government and various
organizations attempts to fight obesity, people are becoming more
conscious of eating healthy food rather than what KFC has mainly to
offer in its menu.
3. Local fast food restaurant chains. Local fast food restaurants can often
offer a more local approach to serving food and menu that exactly
represents local tastes. Although KFC does a great job in adapting its
own menu to local tastes, the rising number of local fast food chains and
their lower meal prices is a threat to KFC.
4. Currency fluctuations. KFC receives part of its income from foreign
operations. That income has to be converted into dollars and may affect
the business’ profits, especially when the dollar is appreciating against
other currencies.
5. Lawsuits against KFC. KFC has already been sued for many times and
lost quite a few lawsuits. Lawsuits are expensive as they require time and
money. As KFC continues to operate more or less the same way, there is
high probability for more expensive lawsuits to come.

Sources

1. KFC (2013). About us. Available at: http://www.kfc.com/about/

2. Wikipedia (2013). KFC. Available at: http://en.wikipedia.org/wiki/KFC
3. 9WSYR (2013). Yum Brands: KFC sales will fall in China after probe.
Available at: http://www.9wsyr.com/business/story/Yum-Brands-KFC-
sales-will-fall-in-China-after/bcy0s-8mAUeqWoh6fnmpCw.cspx
4. Interbrand (2013). Best Global Brands 2012. Available at:
http://www.interbrand.com/en/best-global-brands/2012/Best-Global-
Brands-2012.aspx