Kfc and Global Fast-Food Industry

Case 6: Kentucky Fried Chicken and the Global Fast-Food Industry in 1998. 1

Case 6: Kentucky Fried Chicken and the Global Fast-Food Industry in 1998

Group 3 Lindsie Hillsman, Jennifer Hu Heather Johson, Edgar Jones

Professor Ferman Management 445 Section 1 February 23, 2007 Whitt 108 MWF 2PM ~ 2:50PM

Case 6: Kentucky Fried Chicken and the Global Fast-Food Industry in 1998. 2

Case number 6, entitled Kentucky Fried Chicken and the Global Fast-Food Industry in 1998, talks about Kentucky Fried Chicken’s or KFC’s overall history and company’s up and downs. The history of KFC came about due to a very innovative

and driven man named Harland Sanders, the creator of KFC in 1952. In order for Harland Sanders to gain prospective franchisees he traveled across the United States to find the potential buyers. In the 1960’s KFC became the first fast food chain to go international. “Colonel Sanders” began to franchise and took over two hundred restaurants and home retail outlets across the US. In 1963, the number of KFC franchises rose from 200 to 300 franchises that created a profit of $500 million. In 1964 the Colonel sold the business to Jack Massey and John Brown Jr. for $2 million with a per year share salary of $40,000 and as the times changed this salary later rose to $200,000. The Colonel still had a say in KFC’s public relations aspect of the company. In 1966, KFC was listed on the New York Stock Exchange and is still to this day found on the New York Stock exchange under the ticker symbol and branded company named YUM!. In 1969, KFC signed a joint venture with Japan, which helped in the expansion of KFC internationally. By 1971, KFC had 2,450 franchises and 600 company owned. KFC began operating in forty-eight countries and formed a merger with Heublein. Heublein was a company that produced alcoholic beverages

Case 6: Kentucky Fried Chicken and the Global Fast-Food Industry in 1998. 3

and cocktail mixers. Heublein did not have much experience in...