66
+3%
6,192 $m
Restaurants
It was a tough year for KFC, despite being the second-largest restaurant chain on the planet. The brand came off a strong 2012 thanks to the performance of its franchises in China, which account for around 40 percent of its revenue. The gloss has come off the brand for many Chinese consumers, however, following a major food scandal involving the processing of chicken that damaged consumer confidence in its food quality. Unfortunately, this was reinforced with a China Central Television (CCTV) investigation that exposed unsafe levels of bacteria in KFC’s ice cubes. Avian flu outbreaks and slowing growth in the Chinese economy have also been setbacks, although they have not dampened the brand’s enthusiasm for growing its international footprint. In addition to expanding in China, the Yum! Brands-owned chain is making a concerted push into Africa. Part of the success of KFC has been its ability to translate the brand concept using locally relevant menu adaptations, complementing original recipes with variations like Spicy Szechuan. It’s also experienced recent success in the US with its boneless chicken and special kids meals. Yet, despite this, KFC has to work hard to avoid being left behind in developed markets where an increased focus on quality and a shift toward healthier gourmet food is driving the success of smaller rivals, which are taking an increasing share of the quick-serve market.