Since the establishment of KFC in 1952, it continuously operates prosperous even until today. With its “finger lickin’ good” chickens and caring employees put them into the top of their careers. All of this boils down to the great managerial skills of KFC executives and their dedication to instill great values into their employees adds up to all of the ingredients of their success.
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Kentucky Fried Chicken
Founded by Colonel Harland Sanders in 1952, KFC continues to serve its customers with “Finger lickin’ good” fried chickens (kfc.com, 2007). Categorized as a fast-food restaurant based in Louisville Kentucky, KFC has been known for their fried chicken. The quality of KFC’s service and good tasting foods made them successful and expand their markets abroad. There are about 1 million KFC store in 80 countries around the world. Aside from their famous fried chicken, KFC also offers plated meals, sandwiches, deserts, bowl meals as well as salads. Since 1966, KFC began to open itself to public and start to sell stocks to the public (kfc.com, 2007). Prior to the said year KFC remained privately owned company from the franchises that Colonel Sander made from traveling from town to town.
Three years after KFC open itself to the public, in 1969; KFC Corporation is already listed in the New York Stock Exchange. The mother company of KFC, Yum! Brands Inc has been able to have good profit inflows despite of the issues and economic instability in the market. It is said that the company had a higher investment returns by 19% compared last year (bizjournals.com, 2007). The profit, on the other hand, gained 31% in China and 25% internationally. China is the major contributor of growth in the company due to its massive expansion to the Chinese market (businessweek.com, 2007). KFC, alone, contributes around $520.3 million revenue for their operation (hoovers.com, 2007).
In terms of hiring employees, as for the position of manager, the KFC management requires at least a high school graduate with 1-2 years of working experience (monster.com, 2007). After qualifying and submitted the resume, the applicant must still have to take series of test [on line quiz]. After 48 hours, results will be announced through email; after which an interview is to be conducted to the applicants. After the said interview, the management will contact the accepted applicant/s for the orientation of their job position.
It is up to the KFC branch and/or the management if they still want to conduct final interview on the top applicants to further filter the deserving one. As for the wage, a KFC branch manager receives around $26,000 to $45,000 per year excluding the bonuses and monetary benefits. The said wage rate is for a full time manager of KFC. A separate wage rate is set for a part time employee depending on the agreement from the management. In terms of the benefits, KFC offers Medical and dental benefits, vision/hearing coverage, life disability insurance, “401k plan”, stock options, “management incentive plan, tuition reimbursement, scholarships and employee assistance program.
There are still other working benefits the said company is offering to its employees. Benefits are being determined depending on the employment plan and contract of the management and employees. Meaning, each position has a different amount of benefits to receive from the management. There are also times wherein the company awards profit sharing agreement to those deserving employees as a form of reward. Deserving employees are being determined depending on the value judgment of the top executives of the company.
Moreover, the KFC management also offers flexible time of working especially to moms. The management understands that there are instances that family comes first from the job responsibility (kfcjobs.com, 2007). This is also the reason why they are hiring hourly shifting employees in order to fill the gap that was left by the employee moms.
As for the payscale of the employees, see Appendix 1, the median salary per year of a general manager is around $39,000; restaurant manager receives around $35,000; assistant manager [fast foods] receives around $30,000; restaurant assistant manager receives around $28,000; district operations manager [fast foods] receives around $58,000; fast foods manager receives around $31,000 and general manager [food service] receives around $38,000.
Currently, there are around 750,000 employees are being hired by KFC all over the world. The said bulk of employees include part-time and full-time employees working on all the branches of the company. KFC oftentimes offer part-time jobs to high school students especially during summer. Their only requirements for their part time employees are “Smile and a positive attitude”. Part time employees also receive 50% discounts on meals, free uniform and paid training (machester.edu, 2007).
KFC also employs managers on an hourly shifting in order to share job responsibilities. This is only being implemented for KFC branches that are big enough for a usual manager to handle with. Oftentimes the position of operations manager is the one that is being shared by a number of managers in order to meet the required needs of the said position given the large size of the store.
Moreover, KFC offers great career opportunities into their companies. Starting up as a team member, an employee of KFC could reach as high as ‘Region Coach’ position. These employees undergo non-stop trainings and seminars accredited by NZQA even if they already reach their induction. Some of the trainings that they are attending are computer based training program to enhance the conduct of their operational activities, ‘Start training program that aims to increase the skills of the employees and the ‘In the Lead Training Program’ that aims to prepare the employees to become a shift supervisor as well as the ‘Be the Leader Training Program’ which aims to develop the skills of the employees to become the next Restaurant General Manager.
This means that through out the staying of employees on the floors of KFC, they will continuously learning to improve their managerial skills. With the company’s aggressive expansion on the market, it opened a room for the employees of KFC to be promoted to fill the needed position for new store branches that will be established. KFC has been strictly implementing internal promotions in order to motivate their employees as well as to have persons on various critical positions that already have enough knowledge and experiences on the entire operation of the company. In short, most of the top managers of KFC started on the lower level management.
They strive hard in order to get into where they are now. In one of the example given by the KFC Company, there are some Branch Operation Managers that started in KFC as a Cook while the said employee was still in high school (kfc.co.nz, 2007). With the aid of the management training program of the company, the said branch operation manager was able to achieve his current job position.
Promotions are given to those employees who have satisfied the majority of the core values of KFC towards serving the customer as well as having exemplary performance among other employees. One of the core values that KFC wants to instill to their employees is the ‘CHAMPS’- telling the KFC staffs that customers are the most important thing to focus on. Another is ‘Customer Mania’ wherein staffs serve their customers and exceeding their expectations. This said program is telling the KFC staff to put customers at the center of everything that they do (premierrecruit.com, 2007). There are still other core values and protocols that employees’ must follow in order to be recognized and give merits by the branch manager.
In order to fruitfully accommodate the customers that come into the doors of KFC, staffs are required to be in their company uniform in order to become presentable and be recognized by the customers. Moreover, crews are being thought of the basic moral conduct especially when dealing with the customers. The management advises the crews to always wear a smile every time they are with the customers as well as to listen and respond to the queries of their customers; always prioritize the satisfaction of the customers than profitability and dedication on the responsibilities of each and every employees of the company.
On the other hand, despite of the success of KFC, there still issues arise criticizing the credibility of the said company. For the past years, KFC has been on the news regarding on their ‘maltreatment’ to their employees. Since then, employees had become very eager in establishing unions in order to protect their rights. KFC is open on the idea of labor union establishment but it would still depend on the judgment of the top executives of KFC if whether they will allow a formation of labor union on certain restaurant branches (qsrmagazines.com, 2007).
Since its advent, KFC becomes successful in the restaurant industry. With the core values, superb managerial skills and incentives of being employed in KFC helps the company boost their image in the market as well as to their customers. By giving premiums to the customers and good tasting foods is the reason why customers prefer their stores over their competitors.
With this, they were able to expand their operation here and abroad. Their market aggressiveness also helped them to acquire their needed market influence. Even if they have been hitting by controversies regarding their treatment to their employees, KFC still manages to hold its credibility as one of the successful franchise business in the market.
In order to restore the image of KFC to its employees, it is a must for them to address the problem on what their employees has been clamoring in the streets. In the long run, if this prevails, the quality of the service of their staffs and crews might be affected as well as the over-all performance of the company. The management cannot prevent the customers to sympathize with the employees demonstrating in the streets and this could affect the image of the store if left untreated.
As KFC becomes more and more successful, the management is starting to devalue their employees and focus on other things which they think could further increase their profit and sales. The management has already forgotten that the key role of their success is their employees and the quality of their services. It is right to find other ways to further improve the stable condition of the company, but to forget the one that helped the company in achieving the success that they are experiencing right now is not right. KFC executives must put into balance their priorities and address their problem with their employees as soon as possible.
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BusinessWeek.com. (2007). Yum’s Growth Has a Foreign Flavor. Retrieved November 5, 2007, from http://www.businessweek.com/investor/content/may2007/pi20070502_926778.htm?chan=search
Hoovers.com. (2007). KFC Corporation – Annual Income Statement. Retrieved November 5, 2007, from http://www.hoovers.com/kfc/--ID__56325,period__A--/free-co-fin-income.xhtml?ID=56325&period=A&which=income¤cy=1
Kfc.com. (2007). History. Retrieved November 5, 2007, from http://www.kfc.com/about/history.asp
kfc.co.nz. (2007). Careers. Retrieved November 5, 2007, from http://www.kfc.co.nz/index.cfm?contentNodeID=422
Kfcjobs.com. (2007). A Profile. Retrieved November 5, 2007, from http://www.kfcjobs.com.au/returntowork/a-profile.aspx
Monster.com. (2007). Restaurant Managers- KFC. Retrieved November 5, 2007, from http://jobview.monster.com/getjob.asp?JobID=57621055
Manchester.edu. (2007). Part-time Off Campus Jobs. Retrieved November 5, 2007, from http://jobview.monster.com/getjob.asp?JobID=57621055
Premierrecruit.com. (2007). YUM! Restaurants Internationals. Retrieved November 5, 2007, from www.premier-recruit.com/kfc.doc
Qsrmagazines.com. (2007). McDonald’s, KFC Could Allow Chinese Unions. Retrieved November 5, 2007, from http://www.qsrmagazine.com/articles/news/story.phtml?id=5342
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