Environmental Concerns

Criticisms Environmental concerns KFC in the US has been accused by Greenpeace of a large destruction of the Amazon Rainforest, because the supply of soy used for chicken food that KFC receives from Cargill has been traced back to the European KFC. Cargill has reportedly been exporting soy illegally for several years.[44] The Greenpeace organization researched the issue and brought it to the attention of the parent company YUM! Brands, Inc. The parent company denied the illegal operation, and said that their supply of soy is grown in parts of Brazil.[44] Greenpeace has called on KFC to stop purchasing soy [ from Cargill, to avoid contributing to the destruction of the Amazon.[44][45

Trademark disputes In 1971, Sanders sued Heublein Inc., KFC's parent company at the time, over the alleged misuse of his image in promoting products he had not helped develop. In 1975, Heublein Inc. unsuccessfully sued Sanders for libel after he publicly referred to [ their gravy as "sludge" with a "wallpaper taste".[46 In May 2007 KFC (Great Britain) requested that Tan Hill Inn, in the Yorkshire Dales, North Yorkshire, UK refrain from using the term 'Family Feast' to describe its Christmas menu,[47] although this problem was quickly resolved with the pub being [ allowed to continue use of the term.[48

Wages and working conditions

Balmoral KFC workers and allies picketing the store Like many fast food outlets, KFC employs a high proportion of young, unskilled workers, at or just above minimum wage, and its workers are not unionized. In New Zealand, KFC youth workers earn NZ$10.13 an hour. Staff at the Balmoral, Auckland store went on strike for two hours on December 3, 2005 after Restaurant Brands, the franchise holder, offered no wage increase in contract negotiations.[49] In March 2006, Restaurant Brands agreed to phase out youth rates in New Zealand, although no date .was set Many stores in western Canada are unionized with the Canadian Auto Workers, and as a result many non-franchise stores in western Canada pay higher than minimum .wage

Animal rights

Protesters demonstrating outside a KFC restaurant in Royal Oak, Michigan Since 2003, animal rights and welfare organizations, led by People for the Ethical Treatment of Animals (PETA), have been protesting KFC’s treatment of the animals used for its products. These groups claim that the recommendations of the KFC Animal Welfare Advisory Council have been ignored.[50] Adele Douglass, a former member of the council, said in an SEC filing reported on by the Chicago Times, that

KFC "never had any meetings. They never asked any advice, and then they touted to the press that they had this animal-welfare advisory committee. I felt like I was being [ used."[51][52 KFC responded by saying the chickens used in its products are bought from suppliers like Perdue Farms, Tyson Foods, and Pilgrim's Pride, and that these suppliers are routinely monitored for animal welfare violations.[53] Several PETA undercover investigations and videos of these and other KFC suppliers purporting to show chickens being beaten, ripped apart, and thrown against walls contradict KFC’s claims.[54] PETA has criticised some of the practices of chicken breeders, such as beak trimming and overcrowding, but KFC says its suppliers meets UK legal requirements. The Department for Environment, Food and Rural Affairs recommends a maximum stocking density of 34 kg—around 30 chickens—per square metre, and say that in circumstances where beak trimming needs to be carried out to prevent the birds injuring each other, only one third of the beak should be trimmed "measured from the tip towards the entrance of the nostrils".[55] PETA states that they have held more than 12,000 demonstrations at KFC outlets since 2003 because of this alleged mistreatment [ of chickens by KFC suppliers.[56 In June 2008, KFC Canada agreed to PETA's demands for better welfare standards, including favoring suppliers who use controlled-atmosphere killing (CAK) of chickens, and other welfare standards as well as introducing a vegan sandwich at 65% of its outlets. PETA has called off its campaign against KFC Canada, but continues to [ demonstrate against KFC elsewhere in the world.[57

Hygiene In February, 2007, a KFC/Taco Bell outlet in New York City was found to be rat infested. A video showing the rats running wild inside the restaurant was shown on television news bulletins around the world, as well as disseminated on the internet via [ sites such as YouTube.[58 Two KFC outlets in Sydney, Australia, were fined record amounts for having unhygienic food preparation areas. Inspectors found layers of grease and dirt, as well as evidence of vermin. The KFC stores had been repeat offenders, and had ignored previous warnings to keep their restaurants clean. They were charged with 11 [ breaches of food hygiene laws.[59

Who is KFC KFC Corporation, based in Louisville, Kentucky, is one of the few brands in America that can boast about having a rich, 57-year history of success and innovation. In fact, KFC is the world's most popular chicken restaurant chain, specializing in Original Recipe®, Extra Crispy™, Colonel's Crispy Strips® and Honey BBQ Wings®, with home-style sides and freshly made chicken sandwiches. Since its founding by Colonel Harland Sanders in 1952, KFC has been serving customers delicious, already prepared complete family meals at affordable prices. There are over 15,000 KFC ..outlets in 105 countries and territories around the world Every day, more than six million customers around the world make KFC part of their lives. KFC’s menu everywhere includes the traditional Original Recipe ® chicken and coleslaw -- made with the same great taste Colonel Harland Sanders created nearly half a century ago. Customers also can enjoy more than 400 other KFC products tailored to the unique tastes of our .individual customers

KFC’s vision is to be “America’s Leading Kitchen for Convenient Meals” and to feed every family a great-tasting meal at least once a week. This reinforces KFC’s long tradition of giving families an alternative to cooking -- a tradition dating back to the late 1950s when Colonel Sanders advertised that he was “Cooking Sunday Dinner Seven Days ”.A Week Community and Corporate Involvement Everyone knows that the local KFC restaurant is one of the best places in the neighborhood to get delicious, quick and affordable meals. But perhaps you didn’t know that your neighborhood KFC restaurant contributes more to the .community than good food KFC, its restaurants and its employees, are involved in countless projects that .benefit the African American community and contribute to the local economy Working with the Opportunities Industrialization Center, KFC has initiated many youth hiring and training programs in several inner-city communities .across the country KFC is a major corporate sponsor of the Louisville Defender newspaper’s .Minority Consumer Expo and Career Education Fair KFC helps underwrite the Fullwood Foundation, established by KFC franchisee Harlow Fullwood Jr. to support community projects in Baltimore’s .inner city In 1996, KFC launched the KFCares program in Louisville, which will enable each local KFC restaurant manager to award a check for up to $1,000 to a .worthwhile project in the neighborhood around his or her restaurant KFC provides food and volunteer staffing to hundreds of social service centers .in cities around the country Economic Impact KFC restaurants are much more than convenient places to get a delicious meal. They contribute millions of dollars to the local neighborhood economy, .providing benefits to individuals and communities across the country KFC offers employment opportunities to neighborhood residents. Nearly all of the 15-30 employees needed for each restaurant come from the immediate .area, and much of the money they earn is spent in their own neighborhoods KFC restaurants support a broad spectrum of products and services in their local areas, including poultry dealers, produce suppliers, courier services, .furniture and much more KFC restaurants generate tax dollars for their communities, supporting .important services like police and fire protection With more than 400 restaurants in inner-city neighborhoods across the country, KFC is already a major employer for urban residents. But we’re doing more. In 1995, KFC began a program to renovate and upgrade many of our inner-city units. KFC will spend about $100,000 per restaurant on renovations, which include upgrading lobbies, adding security lights and even selling Taco Bell products in some units. Each of these renovated restaurants .will add about 20 new workers

,Roger Eaton President & Chief Concept Officer KFC KFC is the world's most popular chicken chain and every day, we serve more than 12 million customers in more than 14,000 restaurants around the world. In the United States, KFC is a $5.3 billion business and operates more than 5,300 restaurants. Our commitment to great food and service is the same commitment Colonel Harland Sanders had when he founded the concept more than 55 years ago, and that's why KFC remains the worldwide leader in the category. Thanks to great dinnertime solutions for families and exciting, innovative menu items for a new generation of customers, Life Tastes Better with KFC

.Copyright © 2009, Hoover's, Inc

Competitive Landscape Demographics, consumer tastes, and personal income drive demand. The profitability of individual companies can vary: while QSRs rely on efficient operations and high volume sales, FSRs rely on high-margin items and effective marketing. Large companies have advantages in purchasing, finance, and marketing. Small companies can offer superior food or service. The industry is highly labor-intensive: annual revenue per worker is between $40,000 and .$45,000 Full Industry Overview For Restaurants

Business Challenges CRITICAL ISSUES Volatile Supply Costs - Unstable manufacturer prices for raw ingredients used in restaurants can significantly impact restaurant profitability. Commodity markets affect wholesale prices for beef and poultry, where prices can change more than 20 percent in a single year. Supply issues can affect the cost of seafood. The wholesale price of flour, eggs, dairy products, fats, and oils can also increase rapidly and affect restaurant margins. Consumer price sensitivity can limit a .restaurant's ability to completely pass through cost increases Increasing Competition - Restaurants face increasing competition from a broad range of businesses vying for consumers' food dollars. Grocery stores and warehouse clubs are providing more ready-to-eat meals and sides, often at a better value than restaurants. Convenience stores, gas stations, coffee shops, and delis sell sandwiches and beverages, cutting into restaurants' share of the lunch market. Home cooking is also a source of competition, as .consumers make over three-quarters of meals at home, according to NPD Group

Industries Where KFC Competes Leisure• Restaurants & Cafes○ Fast-Food & Quick-Service Restaurants

Top KFC Competitors

Church's Chicken•

Chick-fil-A• Popeyes•

Mission To sell food in a fast, friendly environment that appeals to pride conscious, health .(minded consumers (www.KFC.com Stated Objectives Product development Increase variety on menu Introduce desert menu Introduce buffet to restaurants :Introduction on the Neighborhood Program with following .2 :Menu items target African Americans in major cities with the following items Greens Macaroni and cheese Peach cobbler Red beans & rice :Menu items targeting Hispanics in major cities with the following items Fried plantains Flan Tres Leches :Implementation on non-traditional units including the following Shopping mall food courts Universities Hospitals Airports Stadiums Amusement Parks Office Buildings Mobile Units :Increase profitability of KFC through the following Reduced overhead costs Increased efficiencies Improved customer service Cleaner restaurants Faster and friendlier service Continued high quality products .Resolve franchise problems in the United States Implied Objectives :Expansion of international operations to provide the following

Increased percentage of overall sales growth Increased percentage of profit growth Increased expansion of franchises into Mexico Expansion of franchise operation beyond Central America Continued promotion of healthier image through removal of the word "fried" from the name Improve menu selection of rotisserie