History of KFC

KFC (also known as Kentucky Fried Chicken) was started by Colonel Sanders, who began selling fried chicken from his gas station in Corbin, Kentucky, during the Great Depression. Sanders saw that franchising had great potential, and the first official franchise opened in Utah in 1952. KFC helped make chicken popular in fast food, providing an alternative to the common hamburger. Sanders became a famous American figure by branding himself as "the Colonel," and his face is still used in ads today. The company grew so fast that Sanders could not manage it alone, so in 1964 he sold it to a group led by John Y. Brown Jr. and Jack C. Massey.

KFC was an early leader in international expansion, opening stores in Britain, Mexico, and Jamaica by the mid-1960s. During the 1970s and 80s, the company had mixed results in the U.S. as it changed owners several times. It was first sold to the drinks company Heublein, which was later bought by the R. J. Reynolds tobacco group, before finally being sold to PepsiCo. Despite these changes, the chain kept growing globally and became the first Western fast-food brand to open in China in 1987.

In 1997, PepsiCo turned its restaurant business into a separate company called Tricon, which was renamed Yum! Brands in 2002. Yum! has been a more successful owner, and while KFC has fewer locations in the U.S. now, it is growing rapidly in Asia, South America, and Africa. There are now over 18,800 outlets in 118 countries, with China being the company’s biggest market.


Origin of Kentucky Fried Chicken (KFC)

Harland Sanders was born in 1890 and grew up on an Indiana farm. After his father died in 1895, Sanders had to help care for his siblings while his mother worked. He learned to cook at age seven and later worked various jobs, like selling insurance and working on the railroad. In 1930, he began running a Shell gas station outside North Corbin, Kentucky. He started serving simple meals like steak and ham to travelers on his own dining table.

Sanders moved to a more visible gas station across the road in 1934 and began selling fried chicken. He took a short course at Cornell University to learn more about managing a restaurant. By 1936, his success led the governor to name him a Kentucky colonel. He expanded his dining area to 140 seats and bought a motel nearby, which he called the Sanders Court & Café.

Sanders didn't like how long it took to cook chicken in a pan, but he thought deep frying made the meat too dry. He began using a modified pressure cooker to fry his chicken faster while keeping it moist. In 1940, he finished his "Original Recipe" of 11 herbs and spices. He never shared the secret ingredients, though he said they were common items found in most kitchens. By 1950, he began wearing his famous white suit and goatee, fully embracing the "Colonel" persona.

Early franchisees of KFC
When a new highway bypassed his town in 1955, Sanders sold his business and traveled the country to sell his chicken recipe to other restaurant owners. Owners would pay him a small fee for every chicken sold using his secret blend and branding. His first partner was Pete Harman in Salt Lake City, whose restaurant sales shot up after adding the chicken. The name "Kentucky Fried Chicken" was actually created by a sign painter Harman hired, as it made the food sound like exotic Southern hospitality.

Early partners were vital to the chain's growth. Harman created the slogan "It's finger lickin' good" and introduced the famous cardboard bucket meal in 1957. Another early franchisee was Dave Thomas, who later founded Wendy's. Thomas helped design the rotating bucket sign and created a better system for keeping track of sales. To better distribute supplies and ads to his partners, Sanders moved the company's main office to Shelbyville, Kentucky, in 1956.

Sale by Sanders and rapid growth
KFC changed the fast-food world by making chicken a major competitor to the burger. By 1963, there were 600 stores, making it the biggest fast-food chain in the U.S. Sanders decided to sell the company in 1964 for $2 million to a group of investors led by John Y. Brown Jr. and financier Jack C. Massey. The deal gave Sanders a salary for life and made him the official face of the brand.

The new owners standardized the restaurants, using the red-and-white stripes and special roofs we see today. Even after selling, Sanders often argued with the executives when he felt they were making poor decisions. He was upset when they moved the headquarters out of Kentucky and fought for the rights to run the business in Canada. The company eventually went public in 1966.

By the late 1960s, KFC was expanding rapidly to stay ahead of rivals like Church's Chicken. The stock price soared, and the chain was listed on the New York Stock Exchange in 1969.  However, some side projects like roast beef restaurants and motels failed. International growth was also difficult at first; the first store in Japan was a huge failure in its first month. By 1971, the company was struggling with its first financial loss.

Heublein and strained relations with Sanders; R. J. Reynolds
KFC grew so quickly that it eventually became too difficult for John Y. Brown to manage, just as it had for Harland Sanders. In July 1971, Brown sold the company to Heublein, a food and drink corporation based in Connecticut, for US$285 million. While Brown personally earned $35 million from the deal, some experts believed the takeover was necessary to save the company from potential disaster. Heublein intended to use its marketing and sales experience to grow the brand further.

During this period, Church's Chicken challenged KFC by offering indoor seating and a "Crispy Chicken" product. KFC responded by introducing "Extra Crispy Chicken" in 1972. However, an attempt to sell barbecue spare ribs in 1973 failed due to pork shortages and high costs, which led to the product being pulled from the menu. At the same time, Sanders regretted selling the company and his relationship with the new owners turned sour as he publicly criticized the declining food quality.

My God, that gravy is horrible! They buy tap water for 15–20 cents a thousand gallons and then they mix it with flour and starch and end up with pure wallpaper paste ... And another thing. That new crispy recipe is nothing in the world but a damn fried doughball stuck on some chicken.

These comments led to legal disputes, including a libel suit from a franchisee and a trademark battle between Heublein and Sanders over his new restaurant, "Claudia Sanders, the Colonel's Lady Dinner House". Sanders also sued Heublein for $122 million for misusing his image to promote products he didn't help create. They eventually settled out of court for $1 million in 1975, and Sanders was permitted to keep his restaurant under the name "Claudia Sanders Dinner House".

Heublein lacked experience in fast food, which led to the chain failing in overseas markets like Hong Kong by 1975. Sanders continued to publicly criticize the company's poor quality products, and by 1978, KFC’s company-owned stores were no longer profitable. To fix the business, Heublein appointed Michael A. Miles in 1977, who saved the company by returning to a "back-to-basics" approach. Miles updated stores, added drive-thrus, and improved inventory tracking, while also listening to Sanders' recommendations. These changes led to a period of steady sales growth and international expansion into countries like Japan and the UK.

Sanders passed away from pneumonia in 1980 at age 90, having spent his final years traveling extensively to promote the brand.   He remains a central figure in American culture and the primary image for KFC advertising. By 1983, the chain had grown to 5,800 outlets in 55 countries. To prevent a hostile takeover, Heublein merged with the tobacco firm R. J. Reynolds for $1.3 billion. During this time, KFC launched "Kentucky Nuggets" to compete with McDonald's new McNuggets.

Acquisition by PepsiCo
In July 1986, Reynolds sold KFC to PepsiCo for $850 million so it could focus on its tobacco and food business. Analysts had different views on the sale, with some believing the chain had been neglected and others feeling it had been well-revived by Reynolds. PepsiCo used the acquisition to boost soft drink sales, causing several competitors like Wendy's and Burger King to switch from Pepsi to Coca-Cola. By 1987, KFC opened its first Western outlet in Beijing, China, and by 1989, sales were growing significantly.

International growth and franchisee disputes under John Cranor III
John Cranor III became CEO in 1989 and immediately faced a major contract dispute with franchisees that lasted until 1996. Despite this, Cranor invested millions in restructuring global operations, updating store technology, and expanding into non-traditional locations. The chain grew to 8,500 outlets by 1991 but struggled to compete with the rising popularity of grilled chicken burgers from rivals like Burger King.

In 1991, the company officially adopted the "KFC" name to move away from the unhealthy image of "fried" food and reflect its broader menu. Successes followed with the launch of "Hot Wings," popcorn chicken, and the "Zinger" burger abroad, but health-focused products like rotisserie and skinless chicken failed to gain traction. While U.S. sales were weak, international markets thrived, especially in Asia, where KFC became the leading Western fast food chain in countries like China and Indonesia.

David Novak appointed President
By 1994, KFC had over 9,400 outlets but was losing ground to McDonald's and its value menu. David C. Novak was appointed President of KFC North America in 1994 to revive the brand. He improved the company's relationship with franchisees and worked with them to launch successful new items like Crispy Strips and chicken pot pie. Novak also streamlined the menu by removing unpopular items and reduced friction between KFC and sister brands Taco Bell and Pizza Hut.

In 1996, the company finally resolved its long-standing legal feud with franchisees by restoring their original contract protections. Novak also replaced the failed rotisserie chicken with a new non-fried product called "Tender Roast," which was sold by the piece to better align with the chain’s traditional offerings.

David Novak led KFC North America to grow for ten quarters in a row. Because of this success, he was named president and CEO of the whole KFC company in 1996.

Spin-off as Tricon (later Yum! Brands)
In August 1997, PepsiCo separated its restaurant branch into a new public company worth $4.5 billion. While KFC was doing well, PepsiCo's other brands, Pizza Hut and Taco Bell, were struggling. One executive admitted that running restaurants was not their specialty. The new company was named Tricon Global Restaurants. With 30,000 locations, it became the second-largest food seller in the world after McDonald's.

Since 2000, fast food has faced criticism over how animals are treated, its role in obesity, and its harm to the environment. Books like Fast Food Nation and the movie Super Size Me highlighted these worries. Since 2003, People for the Ethical Treatment of Animals (PETA) has protested KFC's chicken suppliers. PETA has held many rallies, and once a protester even poured fake blood on CEO David Novak. KFC responded by saying they buy chicken rather than raise them, but Yum! promised to monitor their suppliers more closely to ensure animals are treated well.

Tricon changed its name to Yum! Brands in 2002. That year, KFC struggled against new chicken sandwiches from Burger King and fried chicken from pizza chains like Domino's. KFC sales dropped as the brand began to look outdated. A roast chicken line in 2004 failed, and a bird flu scare in 2005 caused sales to drop by up to 40 percent. To fix this, KFC launched the "Snacker," a small, cheap burger that sold over 100 million units. They also updated their look by using the full "Kentucky Fried Chicken" name again and making Colonel Sanders' face more prominent in stores.

KFC continued to try new items to attract younger customers, like the Krusher frozen drinks in 2009. In 2010, they launched the Double Down, which used two pieces of fried chicken instead of bread. While criticized for being unhealthy, it was very popular, with 15 million sold in two years. In 2013, KFC tried a more upscale restaurant called KFC Eleven, but it closed in 2015.

By the end of 2013, KFC had over 18,800 stores in 118 countries, making it the world's second-largest restaurant chain. Even though sales in China dropped in 2013, they began to recover the next year. However, in July 2014, a food safety scandal broke out when a supplier in Shanghai was accused of providing expired meat. Yum! stopped using that supplier, but the news caused a big drop in sales in China.

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