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How did KFC grow from a roadside restaurant to the world's second largest fast food chain?
The history of KFC (Kentucky Fried Chicken) is a classic story of the American fast food industry, showing the success of innovation, branding and globalization. Colonel Harland Sanders, the founder of KFC, experienced the Great Depression in the 1930s and despite the difficulties he faced, he started his fried chicken business in a roadside restaurant at a small gas station in Kentucky. Colonel Sanders never imagined that the fried chicken he sold would cause such a sensation around the world.
In his mind, food is a kind of enjoyment, not just filling his stomach.
Sanders’ innovation and struggle
Harland Sanders' inspiration to sell fried chicken amid the oil shock came from his mother's teachings, and he put the cooking skills he learned as a child to good use. Initially, his fried chicken took up to 35 minutes to cook, and he insisted on not using low-quality frying. This persistence changed in 1939, when he discovered the pressure fryer method, which greatly shortened the cooking time of fried chicken while retaining the delicious taste.
In 1939, Sanders invented the pressure fryer, ushering in the era of fried chicken and making his restaurant business boom.
The rise of brands and international expansion
In 1940, his "original recipe" consisted of 11 spices and herbs, and this secret recipe became the KFC logo. In 1952, Sanders licensed this secret recipe to a friend and began the journey of brand franchising. In the early days, KFC was well-known, and its unique bucket packaging allowed KFC to quickly enter the market and even became a major innovation in the fast food industry.
Saunders' initial vision did not stop in the United States. KFC's first British store opened in 1965, and then gradually entered other countries. By 1970, KFC had 3,000 stores in 48 countries.
KFC's expansion and adaptation to the global market have enabled it to successfully enter different cultures and markets.
Changes in brand holding
One of the important developments of KFC in the 1960s was the sale of the company to investors such as John Y. Brown for $2 million in 1964. This move enabled the company to grow rapidly, and it was acquired by Hyperline in 1971. Finally, in 1986, Pepsi-Cola acquired KFC and incorporated it into its own restaurant division.
In 1987, KFC entered China and became the first Western fast food chain to enter the Chinese market. Since then, KFC has expanded rapidly in China, and its current largest market is China.
As China becomes KFC's largest market, the company's internationalization path has also begun.
Maintenance and Innovation
In 2011, KFC’s parent company, Yum! Brands, faced the challenge of urgently needing to rebrand. In the process, KFC enhanced its brand assets, including its classic meal bucket packaging and "Kentucky Fried Chicken" sound. Many famous actors have flexibly reshaped the image of Colonel Sanders to increase its appeal. These attempts have revived the brand.
In addition, KFC also continues to launch new products to attract more customers, such as "hot wings", popcorn chicken and other products, which are the most critical part of success.
Brand innovation is the key to maintaining market competitiveness.
Today’s KFC and tomorrow’s challenges
As of 2024, KFC still maintains strong growth potential in more than 30,000 stores around the world. According to reports, KFC's sales reached US$23 billion, making it still the world's second largest fast food chain. This requires KFC to continue to look for new markets and innovative means to respond to changing consumer needs. At the same time, facing many competitors, how will KFC continue to adjust its operating strategies while maintaining its brand characteristics to cater to the needs of diversified markets?
