KFC is fixing a mistake it has been making for years KFC knows it has lost custo
ID: 353897 • Letter: K
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KFC is fixing a mistake it has been making for years KFC knows it has lost customers' trust. Now it is debuting a new programme to win Americans back. "Customers were saying, 'Your food doesn't taste the same,'" Jason Marker, KFC's US president, said Monday in a press event. "We're not making the food the same way the Colonel had, and we're not making food in what he described as 'the hard way.' Today marks the end of that." The chicken chain is undergoing a process it is calling "Re-Colonelization" — a public recommitment to quality involving employee retraining and a new satisfaction guarantee. Effective immediately, if customers aren't satisfied with their KFC order, the restaurant will remake whatever aspect of their meal fell short. The chain has rolled out an extensive "chicken mastery certification" program, spending more than 100,000 hours retraining more than 20,000 employees. The retraining involved 43 rallies across the US, attended by more than 97% of restaurant general managers. National training events were also held in every KFC location in the US. More broadly, KFC has been trying to turn business around by updating its restaurant design, with plans to remodel 3,000 locations in the next three years. Its Colonel-centric marketing campaign, launched in 2015, is another piece of the puzzle in presenting KFC as a brand that is in touch with its culinary roots. New menu items, such as the Nashville hot chicken, have similarly emphasized the importance of creativity and wellcrafted recipes. KFC's domestic business has struggled in recent years, with Marker comparing the brand to a football team "that was once great." As rivals such as Chick-fil-A have exploded in the US, KFC hasn't been able to keep up with modern, fast-casual-influenced customer demands. According to KFC chief marketing officer Kevin Hochman, only two in five millennials have even visited the chain. "I think it's fair to say that we haven't been living up to the standards or the philosophy of Colonel Sanders himself," Marker said. The Re-Colonelization — and the repositioning of the Colonel as a figure of authenticity at the center of the brand — attempts to recalibrate KFC by returning to its roots. In an era when consumers are craving authenticity, the Re-Colonelization could be just what the brand needs to jump-start its business in the US.
Discuss the key success factors applicable to the industry sector that a franchise such as KFC belongs to
Explanation / Answer
The key success factors which are applicable in the "fast food" industry (the industry which KFC primarily thrives in), are :
Speed of fulfilment: Yes, this is very important. If you are going to compete with McDonalds and other chains in this space, you need to ensure that customer orders are fulfiled quickly. The customer should not have to wait in the queue for more than a couple of minutes to place the order. You should have an extremely streamlined queueing system which ensures short turnaround times, and the kitchens should be synchronized accordingly
Location: This is a very important factor - strategically locating a KFC franchisee close to an office complex is going to help instead of placing it in the middle of bars and pubs. People are obviously going to prefer going to a bar rather than KFC. It is important for them to know that location of the franchisee is critical to its success. They should ensure that they do not miss out on potential customers at any point in time.
Service: It is important to understand that this is a service industry. Ultimately, other than the food, and sometimes, even above the food, the service matters. Customers can get pacified with excellent service even if the food is not up to the mark. In an industry like this where the number of human touchpoints are high, it is very important to ensure that the service is absolutely up to the mark.
Adapt: How quickly the chain adapts to the local taste is crucial. If you are going to set up a fast food chain (which will make money in volumes, not in value) which has a menu that is completely opposite to the local tastes and preferences, then you are going to become a niche restaurant, and not a fast food restaurant. Hence, it is extremely important for KFC to ensure that local preferences are taken care of while designing their menus.
It will also be an add on if KFC can provide nice to haves such as free WiFi - this is an under-rated feature which can get more social footprint for KFC. Customers checking in on social media websites will only give more visibility to KFC which can only do more good to the chain. These aspects improve the "feel good" factor for the customer, which will eventually result in a positive impact for KFC.
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