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KFC® in the News |
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KFC® in the News |
Contacts:
Laura Melillo, KFC Corporation (502) 456-8042
Bob Peck, R.P. Peck Enterprises (405) 773-9933
LOUISVILLE, Ky., (February 19, 1997) - KFC Corporation's 700-plus franchise partners in the United States have been challenged by KFC President and CEO David Novak to build at least one new restaurant each to usher in the 21st Century. The goal is to build approximately 1,000 new restaurants in the U.S. over the next three to five years.
At the annual KFC convention in Honolulu, Hawaii, Novak issued the challenge to some 2,000 franchise partners and employees as part of a new partnership - "TEAM 6000." Designed to strengthen and expand the KFC brand, "TEAM 6000" refers to the joint commitment between KFC and its franchisees to build 1,000 new restaurants, taking the KFC U.S. system from 5,000 to 6,000 stores.
"It's no secret we've had a contract dispute over the last several years," said Bob Peck, franchisee for three KFC restaurants in Oklahoma and chief franchise representative for the negotiations. "That's all behind us now. Team 6000 is all about growing KFC together."
Novak's challenge came after a formal ceremony where representatives of KFC and its franchisees signed the first official contract marking the end of the dispute which began in 1989.
"Resolving the contract issue gives KFC a unity of purpose," Novak said. "We had almost zero distribution growth over the past seven years due in part to our contract dispute. With that behind us, it's time to take the business to the next level. That's why I'm challenging each of our franchise partners to build at least one new store. Our sales growth and unit economics make this a realistic goal."
KFC has experienced strong growth in per restaurant sales and profit over the last few years. "The past two years our sales and profit have steadily increased. KFC is outpacing the industry in growth," said KFC Senior Vice President-Franchising Don Parkinson. "Our average annual store sales now exceed $800,000 and opening million dollar plus restaurants is easily within our grasp," he added.
PepsiCo, Inc., parent company of KFC, recently announced its plan to spin off its restaurant divisions - KFC, Pizza Hut and Taco Bell - by the end of this year to become an independent restaurant company. This would allow PepsiCo to focus on its core beverage and snack businesses.
"This announcement couldn't have come at a more opportune time in KFC's history, " Novak said. "It's a win-win for everyone - PepsiCo and the restaurants. It will allow us to get down to basics and focus solely on the restaurant business."
Dick West, franchisee from Laurel, Miss., said, "We're more excited about the future of KFC than we've been in years. We're in expansion mode now. I see this as a tremendous opportunity and hope all franchisees accept the challenge."
KFC Corporation and its franchisees operate more than 5,000 outlets domestically, consisting of 2,000 company and 3,000 franchise units. KFC is the world's most popular chicken restaurant chain specializing in both fried and rotisserie chicken and homestyle sides. Since its founding in 1952 by Colonel Harland Sanders, KFC has been "America's Leading Kitchen for Convenient Meals," serving customers delicious, already-prepared meals at affordable prices. KFC Corporation is a subsidiary of PepsiCo, Inc., Purchase, N.Y. (PEP). The Association of Kentucky Fried Chicken Franchisees, Inc. is the independent association of KFC franchisees throughout the Western Hemisphere.