PESTLE Analysis KFC | KFC PESTLE
Kentucky Fried Chicken (KFC) is a well-liked name in the fast-food market. It is currently operating in more than 100 countries and everyone is familiar with the face of Colonel Sanders. KFC is best known for its spicy aroma and crispy fried chicken. It is really challenging to run a massive corporation such as KFC. With PESTLE Analysis KFC, you will understand the political, economical, social, technological, environmental, and legal factors of this giant fast-food restaurant. These factors effectively represent the challenges and working strategies of a company.
PESTLE Analysis KFC | KFC PESTLE
Political Factors:
KFC did not utilize an acronym of their real name. The term ‘’Fried Chicken’’ coupled negatively with the brand, that’s why they decided to change the name in order to protect the brand image. Honestly, KFC is the only fast-food chain in the world with unhealthy food. In comparison with Burger King and McDonald’s, they still serve high-calorie chicken. That’s why they use a smart move by removing the word ‘’fried’’ from their brand’s name that creates a great impact on the mind of customers. KFC also indulged in recent political drama when they mock the McDonald’s and Donald Trump’s tweet. Some users digest it as a harmless joke but some of the users consider it a bad joke which results in the negative publicity of the company.
PESTLE Analysis KFC | KFC PESTLE
Economical Factors:
As YUM is a parent company of KFC including Taco Bell and Pizza Hut. These fast-food chains are working well in other regions of the world but struggling in China. In the Chinese market, most of the companies are not growing and some of them experiencing a continuous decline in profits. The biggest problem is due to the ‘’fried chicken’’ that they have removed from their abbreviation. But, many health-conscious people still refused to eat some of its deals that are high in calories and fats. KFC’s main menu mostly consists of fried chicken which is a major weakness of the company. Fortunately, KFC is focusing on vegan items in order to attract vegan and diet-conscious users. Recently, they have created fried chicken sandwiches. They also created two types of vegan fried chicken such as vegan nuggets and boneless wings. Most of the users came just to try these new offerings. In short, these new creations proved beneficial for the company in terms social and economically.
PESTLE Analysis KFC | KFC PESTLE
Social Factors:
There are several fast-food companies that struggling with several social issues. These issues can create a bad impact on the brand and also erode the trust of the customers. The main social issue of the KFC is its mismanagement of worker’s wages. Some customers are also concerned about the material such as chicken and the use of unnatural elements like hormones. Some companies expose the mistreatment of animals which results in the boycott of these fast-food companies. It is important for KFC to remove its unethical practices in different segments so that people start trusting you.
Another main factor in this process is a high-calorie food. Most of the menu of KFC is filled with this kind of food. Due to the obesity crisis, most people blamed these fast-food chains. There is only one way to improve their image is adding vegan items to its menu. This is the only way to attract diet-conscious eaters or consumers.
PESTLE Analysis KFC | KFC PESTLE
Technological Factors:
Like other fast-food chains, KFC is also investing in new technologies for the betterment of workers. By improving the working environment for workers, customer service will automatically improve. That’s why they are hiring more tech-savvy and young people that can use the new technology on the spot like voice-activated tests. In Australia, KFC introduced a social media platform for employee communication. Now, employees can share new ideas and ask questions on this platform with each other which results in the betterment of both employees and the company. In addition, KFC is also adopting the newest technologies for easier ordering, kiosks, and deliveries. With this technology, you can place your order before reaching the counter. This process makes the ordering system much easier for consumers and they don’t need to wait in line for their turn. It is a ‘’click and collect’’ technology which is only in Australia and observed a 20 percent increase in profits.
PESTLE Analysis KFC | KFC PESTLE
Environmental Factors:
This giant fast-food chain is a big contributor to the environment. KFC’s paper company is directly related to deforestation, which openly impacting the health of the environment. Moreover, its unethical practices also cause the endangerment of the wildlife and environment. Due to these reasons, most of the consumers reduce to use KFC’s offerings. It is really important for the company to adopt eco-friendly practices in order to win the trust of green customers. Additionally, these kinds of practices also reduce waste and expenditure. In this way, KFC can improve its brand name.
PESTLE Analysis KFC | KFC PESTLE
Legal Factors:
According to recent stats, KFC works in more than 120 countries around the globe. In order to make their operations smooth and uninterrupted, they need to follow the laws and regulations of each country. They should pay taxes on time and fulfill the requirements of labor laws. Further, they also focus on the maintenance of restaurants so that people can enjoy themselves while eating. In case of any illegal practice or activity, they may face lawsuits and court processes that break the company’s name and reputation in the eyes of customers globally. That’s why it is important to fulfill the need so legal factors in each location to avoid the risk of a nuisance.
PESTLE Analysis KFC | KFC PESTLE
Conclusion:
In today’s world, KFC is an honorable name in the fast-food chains. Despite all the negative political stunts and controversies, they are trying to add a vegan menu to attract more customers. They are also working on the exploitation of new technologies in order to improve customer service. These steps will increase the profit game of KFC and also give a competitive edge over its competitors. According to experts, if KFC follows all the laws and regulations then it will probably continue to grow in the relative industry.
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