KFC was the first fast food multinational to enter India, after the economic liberalization policy of the Indian government in early 1990s. KFC received permission to open 30 new outlets across India. KFC opened first fast food outlet in June 1995 by targeting upper middle class population. After being acquired by PepsiCo, PepsiCo planned to open 60 KFC and Pizza Hut outlets in the next 7 years in the country. The mode of entry used by KFC in India was the Franchise Business Model majorly.
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'Kfc’s Entry in India'
PESTEL ANALYSIS OF KFC IN INDIA
- Political: India is liberally opening doors for international fast food joints. FDI is making it easier for MNCs and global companies to enter into India.
- Economic: A growing middle class population with increasing purchasing power is only making India an attractive place for investments and expansion hubs for global companies.
- Social: Housewives are becoming working women and are moving out of kitchen to offices. A lot of Indians are vegetarians, so the menu was to change drastically.
- Technological: Enough enabling technologies are available in India. It has eventually become the IT hub in the world.
- Legal: Franchising models are strongly available and are working successfully in India among the restaurant industry. It is a trend and KFC also follows the same.
- Environmental: Environmental activists are against killing of animals like PETA can create trouble. This will be a problem and will have a negative impact on the operations of KFC.
KFC’s BUSINESS MODEL KFC’s
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Business model is the same across the world. Eleven percent of outlets are company owned, while the rest operated by franchise holders. KFC follows the Franchise Business Model majorly. The franchisor is KFC Corporation (KFCLLC) whose parent is YUM! Brands, Inc. KFC Outlets prepare and sell chicken, snackables and other approved menu items using the certain trademarks and trade secrets owned by KFC Corporation. The Franchise Agreement grants franchisees a license to use:
- Certain KFC trademarks, trade names, service marks, logos and commercial symbols the franchisor periodically authorizes, including the “KFC” and “Kentucky Fried Chicken” marks;
- The proprietary business formats, methods, procedures, designs, layouts, standards and specifications the franchisor authorizes, solely in connection with the operation of the Outlet.
