Topic > KFC's entry into India

KFC was the first fast food multinational to enter India, after the Indian government's economic liberalization policy in the early 1990s. KFC has received permission to open 30 new outlets across India. KFC opened the first fast food restaurant in June 1995 targeting the upper-middle class population. After being acquired by PepsiCo, PepsiCo plans to open 60 KFC and Pizza Hut outlets over the next 7 years in the country. The entry mode used by KFC in India was mainly the franchising business model. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay PESTEL ANALYSIS OF KFC IN INDIAPolitics: India is freely opening its doors to international fast food restaurants. Foreign direct investment is making it easier for multinationals and global companies to enter India. Economic: A growing middle class population with growing purchasing power only makes India an attractive place for investment and expansion hubs for global companies. Social: Housewives are becoming working women and moving from the kitchen to offices. Many Indians are vegetarians, so the menu had to change drastically. Technological: There are enough enabling technologies available in India. It eventually became the IT hub of the world. Legal: Franchise models are widely available and working successfully in India in the restaurant industry. It's a trend and KFC is also following the same. Environmental: Environmental activists are against killing animals as PETA can create problems. This will be a problem and will negatively impact KFC's operations.KFC's BUSINESS MODEL Keep in mind KFC: This is just an example. Get a custom paper from our expert writers now. Get a Custom Essay The business model is the same in every country in the world. 11% of the outlets are company-owned, while the rest are operated by franchise owners. KFC mainly follows the franchising business model. The franchisor is KFC Corporation (KFCLLC) whose parent company is YUM! Brands, Inc. KFC locations prepare and sell approved chicken, snacks and other menu items using certain trademarks and trade secrets owned by KFC Corporation. The Franchise Agreement grants Franchisees a license to use: certain KFC trademarks, trade names, service marks, logos and trade symbols that the franchisor licenses from time to time, including the “KFC” and “Kentucky Fried Chicken” marks; the proprietary formats, methods and business procedures, designs, layouts, standards and specifications authorized by the franchisor, exclusively in relation to the operation of the Outlet.