A Short Note On The KFC Story In India

Kentucky Fried Chicken, or KFC for short, is a fast-food restaurant chain from the United States, best known for its fried chicken. KFC, headquartered in Louisville, is the world’s second-largest chain restaurant, trailing only McDonald’s. After the Indian government implemented the LPG policy in the 1990s, KFC started in India as the first foreign fast-food chain. The very first outlet of KFC started in Bangalore in the year 1985. Initially, the Indian government permitted the opening of just 30 outlets. Now, the number has steadily increased to over 300, with franchises as well as company-owned restaurants.

The Brand’s History

Yum! Brands, a restaurant company that also owns Pizza Hut and Taco Bell among others, owns the KFC chain.

• Colonel Harland Sanders, who was an entrepreneur, began selling fried chicken from a roadside restaurant in Kentucky. This was during the Great Depression, when KFC was launched.
• Sanders was aware of the possibility of franchising his restaurant and opened the first ‘Kentucky Fried Chicken (KFC)’ franchise in Utah in 1952. Thereafter, he became a prominent figure in the history of American culture by branding himself as ‘Colonel Sanders’, and his image is widely used in various KFC advertisements to this day.
• A fun fact is that Colonel Harland Sanders found KFC at the age of sixty-two, when most people start thinking about retirement.

Initial Problems Faced By KFC In India

There were numerous protests when KFC launched in the Indian market. The first outlet, in Bangalore, was ransacked multiple times by angry protestors.

• Indians were concerned that the western influence would infiltrate their roots, and dilute their indigenous customs.
• In the same year, a second KFC outlet was opened in the capital city – Delhi, but the combined earnings of both locations were insufficient to sustain the business in India.
• Anti-KFC movements accused KFC of using illegal amounts of monosodium glutamate, a harmful product, due to which KFC did not gain popularity. As a result, KFC was forced to exit the Indian market even before KFC started in India.
• KFC returned to India in 1999, after the Indian market had calmed down, and another outlet was opened in Bangalore.
• Until 2004, KFC operated a single restaurant in India.

Protests When KFC Started In India

• A group of unhappy farmers created a furore over the opening of the first KFC store, led by the Karnataka Rajya Ryota Sangha (KRRS).
• Nanjundaswamy, the leader of the farmers who led the protests, vehemently condemned KFC’s entry into India, saying that he believed it was unethical to promote highly processed food in a poor country like ours that has severe malnutrition problems.
• He contended that non-vegetarian fast-food restaurants such as KFC would encourage Indian farmers to shift away from basic crops and towards more profitable varieties, such as the meat industry, leaving the poorer sections of the society without affordable food.
• By late 2003, PETA had ramped up its campaign against KFC’s cruel treatment of chickens, holding protests at regular intervals. Furthermore, anti-KFC movements claimed that KFC sold food cooked and fried in pork fat.
• KFC’s failure was also attributed to flaws in the message it sent to customers about its positioning. It desired to be perceived as a family restaurant, rather than a teen hangout.

KFC Become Successful In India

The first Indian KFC outlet opened in Bangalore in June 1995, and the number of outlets has grown to 300+ today.

• The Indian government enforced the LPG policy in the 1990s, and KFC became the first foreign fast-food chain to enter India.
• Fast food restaurants have grown in popularity in India over the years due to their customised, ready-to-eat menus for people on the go.

The Aftermath

• KFC eventually managed to get a foothold in the country as it targeted metropolitan cities with malls flourishing on every corner.
• After Bangalore, the company aimed to target cities like Chandigarh, Pune, Kolkata, Chennai, and Hyderabad.
• PepsiCo too decided to focus on KFC’s expansion, because its other brand, ‘Pizza Hut’, had established a strong foothold in India.
• The tagline ‘the urge for chicken can only be satiated with the irresistible, indefinable taste of KFC’ was used for all communications with the public, with no attention paid to loud voices that condemned the brand.
• This was a daring move, going against competitors and widely accepted consumer trends.

Sale Strategies Adopted By KFC

1. Commercial Advertisements

• In the run-up to the evening meal, prime-time TV was used to target mothers.
• To arouse that distinct KFC craving, the product was made the hero of the advertisements, with appealing food photography. Teenagers were targeted here.

2. Communications Made In-Store

All messages were also carried over to the in-store environment, simplifying the customer’s path to purchase and reinforcing new purchasing behaviour.

3. The KFC Outlet Experience 

Improved staff training emphasised teamwork and product education. Furthermore, 30% of the estate was refurbished, which had a direct impact on sales.

KFC In The Modern World

• KFC now has locations in over 120 countries, and is the world’s second-largest restaurant chain after McDonald’s. 
• Due to the COVID-19 outbreak, many KFC restaurants in the United States and Canada removed the tagline ‘Finger-lickin’ good’ from their menus.
• KFC India is experimenting with serving bowls that are edible to make its products environment-friendly. Plastic bowls will be replaced by edible tortilla bowls (freshly cooked every day).

Conclusion

The story of the old Colonel who started KFC is inspiring in itself. It demonstrates that one can run a successful business at any age. It also motivates us to prioritise quality over quantity. Although there were numerous problems faced by KFC in India to convince the Indian market of its genuineness, it ultimately fought all odds and made space in the predominantly vegetarian market. Today, it is one of the leading fast-food joints in the country, ironically beating even the homegrown brands in the race.