Kentucky Fried Chicken Malaysia

8 August 2016

Contents KFC 1. 0 Introduction (Figure 1, Logo of KFC Source: google. com) Kentucky Fries Chicken, better known as KFC, is one of the leading fast food Franchise concepts of today; present in a variety of countries around the world. KFC was founded in 1930 by Colonel Harland Sanders, at his hometown Kentucky, but only in 1952 it has grown and become a true multi-domestic company. KFC has more than 15,000 outlets in 105 countries and territories around the world.

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The main aim of KFC is to increase and maintain the quality in fast food industry. KFC is the most famous and largest fast food franchise in Asia, such as Indonesia, China, Malaysia, Japan and Korea. In Malaysia first KFC was opened in 1973, on Jalan Tunku Abdul Rahman and until now they have more than 500 restaurants through Malaysia. The main competitors of KFC are McDonald’s, Burger King, Wendy’s, Subway and many more.

Besides providing normal package of fast food like French fries, burger and nuggets, KFC unlike their competitors provides health and vegetarian foods, and this allows them to have a more market share especially in Asia, where more people care about their health and also where more people such as Indians are vegetarian 2. 0 Company Background 1930 Colonel Sanders create KFC restaurant in 1930 at his hometown Kentucky. He created an unique technology on how to cook chicken with 11 spices. The business of the restaurant boom gradually and the secret recipe continue to use until now.

In order to increase the profit Sanders made different types of snacks and he supplied them to the travelers in his gas station. In 1935, the governor of Kentucky granted him as KFC colonel for his great contribution to Kentucky catering industry. 1950 In 1950 KFC faced a crisis, and he sold his Cafe. But Colonel did not give up and he start to sell his secret recipe to the interested restaurants in Indiana, Ohio and Kentucky around. The first authorized KFC restaurant was established in 1952 in Salt Lake City.

Within the 5 years KFC was opened 400 outlets in the United States and America, and it was a beginning of the franchise operation in catering industry in the world. 1960 In 1963 Sanders sold recipe to 600 more outlets. In 1964 Sanders sold KFC to group of investors Brown and Massey for $2 million. They owned national and international franchise rights, in countries like England, Canada, and Florida. Later retail outlets reached all 50 states, Puerto Rico, Mexico, Japan, Jamaica, and the Bahamas. With 1,500 take-out stores and restaurants KFC ranked 6th in volume among food-service companies. 1970 By September 1970 KFC operated total of 3,400 fast-food outlets. In 1971 KFC merged with Connecticut-based Heublein Inc. , a specialty food and alcoholic beverage corporation and KFC had reached $700 million. 1980 Harland Sanders died on December 16, 1980, but his business did not stop and in 1981 it reached $2. 4 billion. By 1983 the company had made impressive progress. With 4,500 stores in the United States and 1,400 units in 54 foreign countries, no other fast-food except McDonald’s could compete with them. In 1986 PepsiCo bought KFC for $840 million.

By late 1986 KFC developed new menu. 1990 In 1993, sales and profits of KFC outlets in Asia grow. Profit margin in Asia was double those in the United States. By the year 2000 more than 50 percent of KFCs restaurants were located outside the United States. Until now KFC is continuing to expanding foreign markets. 3. 0 Servuction Model (Figure 2, Servuction model Source: self made) Servuction Model – is a model used to illustrate the four factors that influence the service experience, including those that are visible and invisible to consumer.

The Servuction model consists of four factors that directly influence customer’s service experiences. The first three factors are plainly visible to consumers which are servicescape, contact personnel or service provider, other customers. And the last one organizations and system is invisible to the customers, but it impact to the customer’s experience. 3. 1 The Servicescape “The term servicescape refers to the use of physical evidence to design service environments. Due to the intangibility of services, customers often have trouble evaluating the quality of service objectively.

As a result, consumers rely on the physical evidence that surrounds the service to help them from their evaluations. ” (John E. G. Bateson, 2011). Hence, the servicescape consists of ambient conditions such as the color, music, scent, layout, lighting, and design in a physical environment. The effective management of servicescape is particularly important to KFC. Due to the intangibility of services, consumers lack objectives sources of information when forming evaluations. As a result, customers often look to the physical evidence that surrounds the service when forming evaluation.

Location The location of Kentucky Fried Chicken in Endah Parade is convenient both for customers and employees, because is located near to the entrance on the ground floor of the shopping centre, so they do not need to walk long distance, climb the escalator or wait for elevator. However people who use car need to use escalator or elevator, because parking in Endah Parade is located at lower grand floor. Self Service Not only that, for servicescape KFC use Self Service to make order, as any others fast food restaurants.

The client needs to step up to the order place and choose the food, the menu of the food customers will be able to see on the board behind the cashier; after the client choose the food he should order it to the cashier; and while making a payment the food within 30 seconds will be prepared, after this the client can take his order. All these transactions are made at the same place. The line in queue goes so fast so customers will not stay in a queue long time and it means that customers while evaluating physical evidence will not spoil their performance about KFC.

Exterior and Interior Design For all their outlets Kentucky Fried Chicken is always using same exterior and interior design. For exterior design they use bright red and white color, so when customers see red and white building they know that it is KFC. Furthermore their mascot Colonel Harland Sanders is also present in outside each of their restaurant. In figure 3 illustrate the exterior design of KFC in Endah Parade, and from this picture in their sign board you will be able to see their mascot.

The walls of KFC are made using glass not bricks and stone. This is an advantage to the customers because as they are passing by KFC they can see how the staff is serving the customers and in figure 3 shows that the walls of KFC at Endah Parade is made from the glass. (Figure 3, Exterior model of KFC Source: self made) The interior design of KFC is also same as in any others their outlets. They use same color as outside bright red and white. Moreover, the uniform of KFC staff is standardized in all the countries.

They have two type of uniform, all cleaners and cashiers are wearing red T-shirts with KFC logo and black cap; from the picture below, figure 4, illustrates the uniform of employees in Malaysia and in UK, so it proves that in any countries employees of KFC wearing same uniform. The managers of KFC are should wear more office form, shirt and tie, and the figure 5 shows the manager uniform of KFC. (Figure 4, Uniform of employees in Malaysia and UK Source: google. com) (Figure 5, Uniform of managers Source: self made) 3.2 Contact Personnel and Service Providers Contact personnel and service providers are another important aspect of the customer’s experience. Contact personnel are employees other than primary providers that interact with consumer. Service providers are the primary provider of core service, such as dentist, physician or instructor. Employees Employees at KFC restaurant are very friendly, polite and accommodating. Cashiers are the first employee that customers encounter when coming to KFC, it means that cashier should give to their customers a good mood.

When customers ordering food cashiers are always smiling, and always trying to find out the way on how to communicate with customers. For example when a foreign customer does not know local language, the waiters will do everything to understand what customer wants. Apart from that, other employees at KFC are briefly interacting with customers. For example cleaners who keep restaurant clean. It is very important to keep restaurant clean, such as tables, chairs and floor, because hygiene in any restaurants should stand in a first place.

Therefore, cleaners doing a big work, because they should always keep restaurant clean, if tables will be dirty customers will not find a place on where to sit, and next time they may not come to this restaurant. Apart from that, they also sometimes interact with customers, like if the customer does not know where to find straw or ketchup or where is washbasin, in KFC he can ask only cleaners, so it means that they should be friendly and polite with the customers, and with smiling in face show where they can find it.

Last but not least, employees play an important role in any service provider companies, and in order to make customers more satisfied companies must provide training for their employee; and KFC provides training for their employees every two month. Mangers Managers are the people who guide the spirit of KFC. The managers of KFC shape the character and atmosphere in the restaurant. They are coaching employees to achieve excellence. Managers need to make a great team from the employees, because this will makes better customer service, and also it will lead in increasing sales and profitability, which is one of the main goals. Managers of KFC are not only focused on commercial, but also they are creative in the way that they solve sometimes-conflicting challenges of managing budgets, driving sales and growing teams. Managers are the driving force behind ensuring restaurant achieves the level of operational excellence that meets the high standards KFC strives for, and that customers deserve. 3. 3 Other Customers The success of many service encounters depends on how effectively the service firm manages its clientele.

A wide range of service establishments such as restaurants, hotels, airlines, and physicians’ offices serve multiple customers simultaneously. Hence, other customers can have a profound impact on an individual’s service experience. Research has shown that the presence of other customers can enhance or detract from an individual’s service experience. TV KFC provides TV for their customers, so when the clients waiting for their turn in queue or while eating they can watch a TV. Malaysian KFC provides Astro TV for their customers, but according to the rules they are allowed to put only sports channels and their advertising video.

However, in Malaysia KFC do not provide TV for all their outlets. From the figure below, shows that KFC in bukit tinggi provides TV with Astro for their customers, but in Cheras they do not provide it. (Figure 6, JOM KFC Source: http://kfc. com. my/jom-kuala-lumpur. php) Free Access to Wi-Fi Besides that, KFC provides free Wi-Fi access. They aim of providing Wi-Fi in KFC is same as for TV, for people who are waiting for their turn and people who are eating. Not only that, sometimes people like to come to KFC order juice and just seat and use their Wi-Fi. In Malaysia KFC uses TN Wi-Fi, and unlike TV, KFC provides Wi-Fi for all their outlets. In hence, KFC is caring about their other customers and they doing everything to keep them in a good impression and it mean that they will suggest to other customers to visit KFC, because they have everything to make customers feel themselves convenient in their restaurant. 3. 4 Invisible Organization and Systems Invisible organization and system refers to the rules, regulations and processes upon which the organization is based. Although they are invisible to the customers, they have a very profound effect on the consumer’s service experience.

Kitchen At KFC restaurants customers are able to see only a small part of their kitchen, like the chickens which they currently have and drinks which they provide, but customers will never see what is going on inside the kitchen; because it will ultimately impact the customer’s dining experience. Moreover, to prepare so delicious chicken in KFC, takes only 20 minutes. At least 13 people are working in the restaurant At any time in KFC working at least 13 people; 2 persons working at the cashier, around 3 persons cleaning the restaurant and the rest working in the kitchen.

But during a traffic time, like lunch or dinner, more employees working there because to serve customers as fast as possible they will need more people at the cashier to serve customers, more people in kitchen to make food faster and more people for cleaning because they need to wash floor and also they need to always keep tables clean, so that customers will be able to sit on where they want, not where is clean. Light Decorations KFC found out that light decoration is also plays important role to make people feel more comfortable in their restaurant.

The light in their restaurant in not bright and not dark, they are using warm white glow to make a cozy atmosphere in their restaurant. It is help them to realize a beautiful and modern lighting and it is perfectly fit into red and white KFC design. 4. 0 The Challenges and Recommendations Perceived service quality can be defined as, according to the model, the difference between consumers’ expectation and perceptions which eventually depends on the size and the direction of the four gaps concerning the delivery of service quality on the company’s. First Challenge and Recommendation

Sometimes at late evening around 9 p. m. employees in KFC are looks tired and they are not friendly like in a day. When customer want to make order cashier is not smiling and ask customer say again what he wants to order. Also from time to time cashier looking at the queue if there any other customers or haw many customers in the queue. This is happen because KFC do not have enough employees to serve and even sometimes employee may not come to the work and because of these factors some employee have to work whole day and at the end of the day he will looks very tired.

To avoid such tired employees, the manager of KFC should hire more employees. Besides that, managers of KFC already made some penalty for the workers who do not come to the work, but it still happening, that employee does not come to the work. To avoid such situation, managers of KFC should make another strategy, to motivate employees to follow the rules. For example increase the penalty or if the employee did not come to the work 3 times in one month, managers should dismiss him and hire another person who will follow the rule.

Second Challenge and Recommendation In the some KFC restaurants such as in Endah Parade customers will be able to feel the smell of oil in which they are preparing chicken and some customers do not like this smell; and also clients can feel the smell of expired food, because cleansers’ throwing food which customer did not finish to the rubbish and the rubbish is inside the restaurant where people eating. KFC restaurants cannot avoid the smell of oil because such restaurants is located in the closed premises, such as at shopping malls, so the oil cannot gone from the restaurant and it will stay for a long time. Furthermore, KFC cannot avoid the smell of expired food because the space of the restaurant is too small and they do not have a space to put rubbish away from clients. Third Challenge and Recommendation When customer wants to order some food at KFC such as nuggets or French fries he must wait for a few minutes, while the food will be prepared. A cashier will give to customer order number, and client should seat and wait until when they will prepare the food.

While waiting a customer can became angry because he is hungry and want to eat, and next time he may choose to eat in other restaurant where he does not need to wait. KFC do that because they want to give to their customers’ fresh food and if KFC will prepare nuggets before when someone will order it will be not fresh and cold or even if for a long time no one will order nuggets it can become spoiled and employees will have to throw it away. Recommendation for this can be that KFC should to come up with a new technology, like they can add something to their French fries and nuggets so it does not spoil too fast.

Conclusion All in all, KFC is the name of trust for the customers because there is no compromise on the quality of the food, and no one can make so delicious chicken like they do. KFC fully focus on the quality of food that is why it is the hallmark of excellence among the customers. After analyzing KFC restaurant by using Servuction model I can conclude that all of its components are satisfied at the high level. The Servuction model illustrates the impact of the servicescape, other clients, contact personnel and service providers and invisible organization on customers of the restaurant.

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