THHGLE11B Manage quality customer service
ORGANIZATION OVERVIEW:
Kentucky fried chicken (KFC) is the fast food restaurant and one among the leading fast
food restaurants in the town. Whether it’s a take away or dinning in, KFC has all the
customers’ favorite chicken, salads, sandwiches, snacks, sweets and sides. At KFC, the
team take great pride and care to provide every customer with the best food and dining
experience in the quick service restaurant business. As everyone of us know that that’s
it’s an international organization and stated as the largest chicken restaurant in the world.
It has almost 10,800 restaurants in 85 countries.
We are going to talk about the franchisee located at swanston street, Melbourne.There are
32 staff working at KFC, swanston street, Melbourne. As we said before the service style
is one 2 types: dinning in or take away. Every employee is having a clear view of what’s
happening in the organization what they can do in order to increase the sales and to
provide a good & healthier food. Its one of the busy fast food restaurants in the town.
People usually like to dine in when they order there food. As its one of the busy outlet
they have no choice other than having the food as take away when the store is busy.
KFC introduces new style of food very often keeping customers tastes in mind. Mainly
the menu looks like this ....
Twister
Original fillet burger
Original receipe chicken
Ultimate burger meal
Chips
Crispy strips
Popcorn chicken
Chicken nuggets
Kid’s meal
Super variety bugget
Family feast
Wicked wings
Sara see desserts etc......
Nutrition:
Everyone says that KFC provides an very unhealthy food.....KFC management denies
that concept and says that there are some foods for the people eating sensibly and when
this is combined with appropriate exercise, is the best solution for a healthy lifestyle.
KFC offers a variety of menu items for those that want lower fat, lower calorie choices,
including Tender Roast and Honey BBQ Sandwiches, corn on the cob, BBQ baked beans
and green beans.
KFC, we are talking about is located at
37, Swanston Street,
Melbourne,
VIC 3000.
Ph: (03) 9650 3133
Website - None Supplied
Email - None Supplied.
OPERATING HOURS: 10am – 11pm (different timings on weekends).
Company’s Mission Statement
KFC’s mission statement is to seek and to traverse the twists and turns of the 21st century
with a sheer, life-affirming audacity. Being a franchisee, KFC has to stick to its quality
control, and franchise system working, and still seems to be number one company in the
chicken fast food competition.
When spoke to the restaurant manager John Tippet we were said that KFC will introduce
their present and new products and services into new geographic/demographic areas. He
also told that objectives and goals of the organization are measurable and achievable. He
continued saying about the staff that “Our structured orientation and training will put
them on the right path. Whether they start as a Customer Service Team Member or Food
Service Team Member, they will get the chance to cross-train so that they carry on
learning new skills. These skills will not only be used at work, but will also give them
skills for life.
As a Team Member they have the opportunity to reap the rewards of our Traineeship
Program which leads to a Nationally Recognized Qualification. The work, they learn and
they get paid!”
KFC management at best- a tough management style focused primarily on financial
measures and rewards. We recognised that we did have a skilled set of people that
could be of benefit to the community without dipping too far into our pockets”. “What’s
more, with the structure we had we could make a local decision.” The program has had
very good buy-in from the KFC management largely due to the passion that the program
has created.
Organizational Structure and Design

KFC is part of a divisional structure.

Offers positions to many people; good for senior executives.

Willing, responsive, and flexible to change and growth
CUSTOMER DEMOGRAPHIC:
Demographic factors that companies like KFC have to take into account along with their
style they treat a customer at restaurants. Because more significant percentage of the
female population had been working they had less time to prepare their meals. A lot of
fast-food chains noticed the trend, which created an over-supply and an aggressive
competition among players.
POSITION IN MARKET PLACE:
Markets offer great opportunities for companies that are ready to expand. KFC is
evaluating the resources, capabilities and competencies internally to take advantage of
this opportunity.
CUSTOMER SERVICE REVIEW AND ANALYSIS:
It is important to determine the effectiveness of the company. In addition, programs
should be included which shows a plan to ensure KFC. Some of the tasks include:
assigning new responsibilities, hiring new employees to work for quality and control
audits. Centralized control cannot be maintained since it is impossible to effectively
manage an operation from the headquarters without the information and knowledge
needed to make sound strategic decisions.
1. KFC has been known to be a company that did not come up with new products
too often. They have a limited menu and have sticked to their original recipe
chicken that made their success since the beginning. KFC occurred high cost in
order to try to create awareness for its sandwich.
2. Fast food meals based on burgers and fried chicken (e.g. MacDonald's, KFC) also
tend to be perceived as convenient but unhealthy.
3. They were more interested in maximizing profits in the short term rather than to
adhere to corporate standards and strategic plans. To find the balance between
corporate control and cultural sensitivity has been the main point of concern at
KFC.
STRENGTHS:

KFC has Varity of capabilities including mainly its unique way to deliver chicken and
its special chicken recipe.

It understood what customers demands are therefore, it being able to offer price
sensitive customers with the alternatives to choose the type of food the customers
purchase. This would give customers the feel of they have more control over the
money they spend on food.

By establishing and having the most recognition brand in the world. KFC has more
potential and ready to exploit markets.

It has an outstanding bargaining power that tolerates KFC to gain lower prices from
its supplies.

Because of the economies of scale, KFC is able to offer a low price and at the same
time offer the good original taster to customers.

Currently, KFC also has a well position with a high market share.

As there was increased in using of technology, KFC has a good control over the food,
cooking time, crispiness etc.

KFC still has the potential and ability to create more menus and come up more
alternatives and healthy products to the customers. Consumers continue to return to
KFC because of the quality and good prices of their food.

KFC has a lot of fans and continues to grow to provide better customer service.
WEAKNESS:
KFC is lack of ability to create with new products too often. It has a limited menu and
just based on its original chicken recipe, which made their success since the operation.
Customer (External) Analysis:
KFC’s customers generally choose the restaurant they will eat at based on quality and
price sensitivity. They can also be characterized by being people that want to be served
fast and be out of the restaurant in no time.
We can see that competition is really tough domestically as this fast food restaurant is
located in the heart of the city and there are huge number of restaurants around it. Mc
Donald’s, Hungry jacks and subway are located just few steps from this store. The fastfood sector was surpassing the full-service sector, however due to the maturation of the
sector and rising family income among many Australians, dinner houses became more
popular and we can see a trend for full-service restaurants. Domestically, the chicken
market seems saturated and is only growing at a rate of 1%.
Another concern was the shortage of employees. Profitability was therefore affected and
margins had to be cut. On the other hand, technology helped restaurant chains a bit by
increasing productivity and efficiency concerning accounting but it did not offset all the
problems.
Factors Influencing External Factors are:
Economic factors: These influence general economic state of affairs with which the firm
interacts such as tax authorities, banks, stock exchange etc.
Technology: Use of technology to control cooking times and maintain right temperatures
Political/legal: Government parties, regulating bodies interact with organization
influencing the regulations under which the companies must operate.
Another concern was the shortage of employees. Profitability was therefore affected and
margins had to be cut. On the other hand, technology helped restaurant chains a bit by
increasing productivity and efficiency concerning accounting but it did not offset all the
problems.
As per the CSQ I approached a customer who was coming out of KFC after having his
lunch there and asked him about the restaurant and the service they provide to a
customer.
He said “This KFC is relatively narrow for a busy fast food restaurant and is often
crowded. For some reasons, the queues do not seem orderly and people switch from one
line to another. It is a lottery as to how quickly one gets served. Most disconcerting is
how the toilets are locked and require a staff member to open for a customer. This can
take a couple of minutes, particularly if the restaurant is busy. Not my favorite fast food
restaurant in central Melbourne”.
IMPLEMENTATION:
The oil used in preparing the chicken items in KFC contains relatively high levels of
trans fat, which increases the risk of heart disease. In that case , they should aim to make
use of other types of oil which would not effect the health . they should also bring this to
the customer notice that KFC provides a healthy food.They can provide the monetary
rewards for the best franchisee which would be judged by the mystery guest.
Efficient programs should be implemented to reduce any sort of cost. Every employee
should have a clear view of what’s happening in the company what the company can do
in order to increase the sales and to provide a good & healthier food. Customized menu
for children and adults can be implemented. Being an franchisee it can provide the large
areas in their store for kids and can attract them.
KFC should always listen to their customers and try to follow the new trends on the
market in order to fully satisfy their customers. They also have to follow the trend and go
hand in hand with customers to satisfy their changing needs. They have want to keep an
excellent image by treating employees fairly and keeping a good control over franchises
to make sure they follow the company’s procedures. KFC has an emotional attachment
to their original recipe that made their success, they definitely need to move on and
develop new products that customers want in order to increase their financial
performance and value.
Due to the increase in health conciseness among the people, KFC should bring out
alternate healthier ways of cooking techniques like roasting, using less content oil while
frying without losing its taste.
KFC should ensure an efficient supply chain management and logistic control to ensure a
qualitative transport of the chicken. The storage rooms should be well designed for
ventilation, water and food supply. Storage area should be regularly checked for
infection. The stunning should be done properly ensuring that the birds do not regain
conciseness.
Local people have a good idea about the local market and conditions. They have a good
knowledge about the culture and the food habits, so they should consider tweaking their
menu according to the customers needs.
Better marketing and advertising can be done to enhance the sales.
A highly recommended solution would be to have audits for these restaurants on a regular
basis (like weekly, fortnightly or even monthly). This will certainly help to maintain the
standards. By conducting audits the franchisee will have a better idea on what they can
improve on. They should set standards for performance and quality control by following
the guild lines and principles of the company.
RECOMMENDATIONS:
1. KFC should introduce new products into their menu items, as the growing needs
and demands of customers keep on increasing daily, they should be able to satisfy
them. Besides the population is ever growing with new generations coming in,
who are more into variety rather then having the same old stuff.
2. KFC’s Original Recipe Chicken is completely deep fried along with the chicken
fat attached to it; this kind of chicken is high in calories and also high in fat.
Which is not good for the human body as well as for the human heart? In this
growing world everyone is concerned about looking good and eating healthy, so
this is not the ideal food that someone would like to eat on a frequent basis. KFC
should concentrate more on providing healthier eating options for their customers
otherwise fast food joints like subway and sushi would steal KFC’s clients away.
Which they were doing anyway in the first place.
3. By introducing more items in the menu (taken from the first alternative), KFC
would not only be able to solve the problem of limited items on the menu but also by
introducing healthier food like grilled chicken or flame burnt or charcoal cooked or
even salads and soups, they can solve the problem of serving unhealthy food to their
customers.
4. Being a franchising restaurant KFC, the headquarters is very strict about quality
and focused more on quality control and the pressure put on them was tremendous,
which resulted in revolts and bitterness. A highly recommended solution would be to
have audits for these restaurants on a regular basis (like weekly, fortnightly or even
monthly). This will certainly help to maintain the standards and also be a win-win
situation for both sides. The other solution, which could possibly be implemented, is
having mystery guest, who would visit the franchised restaurants whenever they
wanted without informing and checking upon the quality and service of the
restaurants.