Report on KFC: Business Challenges, Adaptation in the Fast Food Sector

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Added on  2023/01/11

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This report analyzes the challenges faced by KFC, including supply chain disruptions, PETA campaigns, and legal issues related to food hygiene. It discusses the impact of these challenges on KFC's business operations and reputation. Furthermore, the report explores how the fast-food industry, particularly KFC, needs to adapt to changing consumer preferences, such as the increasing demand for healthy food options and visually appealing meals. It suggests strategies for KFC to retain existing customers and attract new ones by offering healthier choices and exotic food presentations. The report concludes that adapting to future trends is crucial for KFC to overcome its challenges and maintain its position in the competitive fast-food market. Desklib provides students with access to similar solved assignments and resources.
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Fast Food Industry
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Challenges of KFC......................................................................................................................3
Fast Food Industry may have to adapt in future..........................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
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INTRODUCTION
KFC is an American fast food restaurant chain which was founded in 1952 and is
headquartered at Louisville, Kentucky, US and is a subsidiary of Yum.
MAIN BODY
Challenges of KFC
KFC faced some of the issues and this resulted in temporary closure of its 646
restaurants. This happened because of collapse of supply operations in UK and this created
shortage of chicken. Some of the issues which KFC is facing are;
Distribution Operations collapse- This is one of the problems which was faced by KFC.
Supply operations of the KFC were collapsed and because of this there were shortage of chicken
(Bentham, 2018). Chicken for KFC is very important as all its food items are based on that.
Unavailability caused closure of its restaurants for a temporary period of time.
PETA Campaign- This is also big problem which was faced by KFC in this PETA which is an
organisation for animal welfare started a campaign against KFC. This affects business of KFC
and also affects its image and reduction in customers is another loss for KFC as those who
associate themselves with PETA will not remain customers of KFC. This also keeps constant
pressure on KFC to look after its operations in order to avoid any type of issue.
Legal Issues- KFC also faced some of the legal issues which not only affect the company
financially but also affect its reputation (Sin and et.al., 2019). Its legal issues were related to
unhygienic food preparation and cleanliness of the restaurants of KFC as once claimed one
mouse was seen at the KFC.
These are some of the problems which are being faced by KFC.
Fast Food Industry may have to adapt in future
People are being increasingly concerned about what they are eating. This has affected the
whole food industry and this has affected the fast food industry as well (Nair and Kraus, 2019).
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KFC is a fast food business and hence require that it has to adapt future in such way that it can
keep its existing customers along with attracting new customers. Some ways for doing this are;
Giving Healthy Food Option
Fast food is considered as unhealthy food and this is the reason that many people are now
getting away from it because of the health reasons. KFC and fast food industry has to ensure that
they are able to give their customers healthy food options which are healthy yet tasty to retain
them and attract new customers as well.
Exotic Blend in Plates
People are concerned about quality of the food and its effect on health but one thing
which is changing in this is that people are more attracted towards food which is looking tasty
(Liu, Lee and Hung, 2017). This means that plates of the food should have a exotic blend which
is able to attract customers and increasing social media trend also requires that food which
customers are eating is exotic looking.
CONCLUSION
Above discussion can be concluded that though KFC has faced several issues and this has
affected its business but adapting future in right way can help it in dealing with such problems.
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REFERENCES
Books and Journals
Bentham, J., 2018. The Great KFC Chicken Shortage 2018. Teaching Business &
Economics. 22(2). pp.6-7.
Liu, W.K., Lee, Y.S. and Hung, L.M., 2017. The interrelationships among service quality,
customer satisfaction, and customer loyalty: Examination of the fast-food
industry. Journal of Foodservice Business Research. 20(2). pp.146-162.
Nair, P.S. and Kraus, J.H., 2019. FOOD INDUSTRY TRENDS TOWARDS
SUSTAINABILITY & THE CIRCULAR ECONOMY & THE MIXED EFFECT OF
LAWS. Scitech Lawyer. 15(4). pp.10-25.
Sin, L.K and et.al., 2019. High Competence Faced by KFC Malaysia. International journal of
Tourism and hospitality in Asia Pasific. 2(2).
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