Fast Food Industry

From its infancy in 1952 when Harland Sanders began his journey across the United States trying to convince prospective franchisees to buy his “Colonel Sanders Recipe Kentucky Friend Chicken”, it has today become one of world’s largest chicken restaurant chain and the third largest fast-food chain in 2004. At this point in time, it held more then 51 percent of the US market for chicken in terms of sales and operated more then 12,200 restaurants in 99 countries. KFC was one of the first fast-food chians to go international in the 1950’s and one of the most recognisable brands in the world. While it had initially decided to expand internationally using the franchisee model, in 2004 the company decided to change its strategy regarding high growth markets such as China, United Kingdom, Canada, Malaysia, Thailand, Mexico, Korea, and Indonesia in order to have greater control over product quality, service and restaurant cleanliness. The franchisee model was only used in countries where they needed local businessmen to run the operations because they understood the local culture better the KFC and markets that were small enough to support only few fast-food chains. KFC planned to aggressively expand using the company-owned restaurant into major markets such as Europe and South America. South America was seen as a major market because of its geographical proximity to the US and the large market potential it holds. Mexico in particular was seen as an interesting country to enter into because of the North American Free Trade Agreement (1994) singed between the US, Canada and Mexico.  Many American fast-food chains took advantage of this treaty and aggressively expanded into many South American countries....
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