9 Fast Food Trends for 2015

The foods, ideas, and technologies that will leave a mark on the quick-serve
industry this year.

Authentic Asian flavors becoming more present on quick-serve menus is one trend predicted to take
off in 2015. THINKSTOCK
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Barney Wolf, Competition,Consumer Trends, Fast Casual,Healthy Menus,Ingredients &
Dayparts,Menu Innovations, Ordering,Restaurant Software,Sandwiches
Every time a new year gets under way, theres a combination of promise and anxiety, a very
real hope that better days are ahead mixed with uneasiness about what issues or problems
may be lying in wait.
Thats why predictions seem to be as much a part of a New Years celebration as champagne
and the ball drop in New Yorks Times Square. For the restaurant industry, getting a peek
into likely trends for 2015 provides some insight into the type of menu items that could give
them smash successes in the year aheador a glimpse of the staggering challenges theyre
left to overcome.
No matter which trends actually stick, there is at least one thing operators can be optimistic
about: The economy is improving. The U.S. economy surged ahead 5 percent during 2014s
third quarter, the strongest three-month period since 2003. That followed a 4.6 percent
jump the previous quarter. Meanwhile, the National Restaurant Associations (NRA)

Expectations Index, which measures operators six-month outlook for same-store sales and
other measures, stood at 102.1 in November, down only slightly from Octobers 102.5, its
highest level since 2007. Anything over 100 represents expansion among the RPIs key
metrics.

We dont expect national bakery chains to mill grain in

house, but maybe theres a specialty sandwich or specialty
bread made from the products of a local grain network.
Nonetheless, consumers remain concerned about their personal finances. An NRA survey
found that nearly seven in 10 adults say they are holding back on spending, demonstrating
the degree to which the Great Recession influenced their psyches.
The impact is still very real for many consumers, says NRA chief economist Bruce Grindy
in an email. I do think their mindset is improving, though, and this will translate into more
liberal spending habits as they become more confident in their own personal financial
situations.
The NPD Group, a market research firm, projects that restaurant traffic will increase 1
percent in 2015, an improvement over a flat 2014 guest count.
We have to recognize consumers needs are changing, and we have to stay in tune with
these changes in order to drive traffic, says Bonnie Riggs, senior restaurant analyst for
NPD. [But] as much as things change, they are going to stay the same, because the pillars of
good business still apply.
To help you stay in tune with those changes, weve combed through industry predictions
and talked with experts to come up with the nine trends that will make the biggest mark on
the quick-service industry in the year ahead.

1. Mobile technology affects everything

The technology focus for restaurants has made big strides toward mobile platforms. New
developments can be seen in ordering, marketing, loyalty programs, and payment.
Developers are increasingly combining these applications into a single solution, adding an
additional layer of convenience that is important to limited-service restaurants.
In the U.S., mobile payments are expected to triple to nearly $9 billion in 2015, according to
digital marketing firm eMarketer.

Justin Massa, founder and chief executive of Food Genius, a food industry data and insight
firm, says the industry can expect to see mobile innovations of all different kinds in 2015.
Some will be similar to Starbucks app, which integrates mobile ordering and the brands
loyalty program; others will be like Taco Bells, which lets consumers customize orders, pay
via mobile, and save favorite items. Many will be linked to Apple Pay. Whatever the form,
the opportunity for restaurants to capture the data of consumers is a treasure trove for
them, Massa says.
The advice for restaurant owners from most experts is to take the plungeor else.
Lots of operators, especially smaller ones, have no idea how rapidly the tech world has
already changed, says Michael Whiteman, president of consulting firm Baum + Whiteman,
in an email. They should start investigating now so theyre not irrevocably behind the
curve.

2. Do-it-yourself health
While fads may come and go, healthy eatingespecially the do-it-yourself styleis here for
the long haul. And 2015 will see customers expectations for DIY health climb even higher.
There are people heavily into gluten-free, who care about [genetically modified organisms],
who want low-fat or organic items, but there is no consensus about what is a healthy diet,
says Rita Negrete, senior editor at market research firm Technomic. Still, she says, more
people really are trying to eat more healthfully, and that becomes an issue for restaurants in
an era of shrinking menus.
Health-minded consumers often gravitate to places like Subway, Panera Bread, and
Chipotle Mexican Grill that allow them to customize their orders, thus choosing their own
healthful options. This extends to vegetarians and vegans, who are not only seeking
healthier foods, but also have animal rights on their minds.
Whats unclear is whether certain items are really better for you. But whats clear is we
think theyre healthier, Massa says. Were going to see how healthful [menu items] really
are at the end of 2015, when menuboards are required to carry calorie counts.
The U.S. Food and Drug Administration finally released its requirements for posting
calories to menuboards in November, nearly five years after the requirements had been
passed with the Patient Protection and Affordable Care Act.

Hoyt Jones, president of Jersey Mikes Subs, says the companys experience posting calories
to menuboards is that consumers are more conscious of the calories, but arent likely to
make any significant changes in their habits.
People already tended to eat a little healthier, he says, noting that more consumers today
choose chicken as a protein than ever before. The chain is also testing gluten-free bread and
snacks for people who cant or wont eat gluten.

3. Looking to Gen Z
If you think Millennials are bold in their food selections, take a look at their successors,
Generation Z.
Kids today are much more adventuresome when it comes to eating, and more willing to try
new things, NPDs Riggs says. When they get past six years of age, they dont want to order
from a kids menu, but from a regular menu.
Childrens palates are considerably more sophisticated than they were a couple decades ago,
says Annika Stensson, the NRAs senior manager of research communications. Theyve had
more exposure through their parents, who make up the first generation to dine out on a
daily basis, she says. That has trickled down to the kids space.
Gen Z members still like pizza, chicken, and pasta, but today are looking for variations on
those themes, says Sharon Olson, executive director of the Culinary Vision Panel, which
looks at culinary trends. For example, they might be interested in ordering chicken teriyaki
or chicken parmesan. Being able to choose different condiments and toppings make eating
a safe adventure, she says.
Younger diners also want heightened experiences, louder music, and kinetic visuals.
This is the first true digital generation, so they are even more impatient than Millennials,
Technomics Negrete says. Fast service is critical for them.

4. Local as an expectation
Local sourcing isnt a new trend, but it continues to expand into different menu areas while
becoming a part of consumers eating-out presumptions.
Its starting to creep into expectations of dining, Stenssen says. Its not just produce, but
its now artisan products, seafood, and even alcohol.

On the NRAs Whats Hot Culinary Forecast for 2015, which surveyed 1,300 chefs around
the country, three of the top 10 trends to watch for the year involved local sourcing,
including the top two: locally sourced meats and seafood and locally sourced produce. The
third, which ranked No. 7 overall, was hyer-local sourcing.
Diners generally are demanding to know the origins of their food, particularly produce,
Jersey Mikes Jones says. Thats also important for operators, he says, because they need to
be able to trace it very quickly in case a problem occurs in the supply chain.
Some quick-service restaurant chains already have moved to local or regional sourcing of
some ingredients, and more may want to consider how to fine-tune their menus to
incorporate local market demands, such as beer brewed or grain milled nearby.
We dont expect national bakery chains to mill grain in house, but maybe theres a specialty
sandwich or specialty bread made from the products of a local grain network, says Kara
Nielsen, culinary director of Sterling Rice Group, a brand-building firm. Heres an
opportunity to have a local option.

5. Far East flavors dominate

Although theres a difference of opinion among many of the trend experts about which
ethnic foods will make a splash in 2015, it appears that new and different Asian items will be
breaking through in quick service the most. Consumers will go beyond Chinese, Japanese,
and Thai favorites to discover new regional Asian foods, such as Vietnamese, Filipino, and
Korean items, experts say.
In the past, some Asian items have been dumbed down by removing chilies, fermented
items, and condiments that are their signature, Nielsen says. But Americans increasingly
are looking for real flavors, she says, meaning operators would be wise to keep the
authenticity of dishes intact.
But theres room for innovation, too. Many Asian dishes have their roots in street food, with
a history and tradition that can be interpreted many ways. Adding certain herbs and spices
to existing dishes could serve as a path to take the next step deeper into these various
cultures, Nielsen adds.
Other ethnic foods likely to make waves this year include Mediterranean and Italian, the
latter of which is evolving through fast-casual restaurants like Piada Italian Street Food and
Venti Tre.

6. Foodservice options in every nook and cranny

If theres an open space anywherein department, drug, or convenience stores, for example,
or in supermarketslook for a restaurant or other foodservice operator to fill it.
Retailers, even high-end names, are recruiting operators to increase dwell time, or the
amount of time a shopper spends on site in a store, Whiteman says. Others are doing it to
provide convenience to busy consumers.
Supermarkets have been encroaching on restaurants territories for years with ready-to-eat
meals, and an increasing number of them have added eat-in areas. Even Walgreens has
joined in with prepared food, coffees, juices, smoothies, and self-serve frozen yogurt. At the
same time, pop-up culinary incubators are growing, while vending machines are getting
more sophisticated and able to provide gourmet, even custom-made, items.
Young adults are the heaviest restaurant users, and they are looking for more
convenience, Negrete says. They want to go to a restaurant when theyre looking for an
away-from-home experience.

8. Beverages get the spotlight

Whether its a handcrafted soda at Starbucks, an alcoholic frappe from
Wahlburgers, or a cherry-vanilla-lime cola mashup from a soda fountain machine,
beverages are a growing differentiator for operators.
There are so many creative beverages that are consumer choices, Negrete says. There are
pressed juices, specialty teas and coffees, and a lot of frozen slushy beverages that have
become popular. In addition, many limited-service restaurants are serving soda from
smaller, regional bottlers, she says, and that makes the beverage more special.
The biggest impact on the industry continues to come from the Coca-Cola Freestyle and
Pepsico Spire fountain machines that give consumers hundreds of choices at the touch of a
finger. Those have been more widely introduced and they are proven traffic drivers,
featuring both sodas and non-carbonated drinks, Negrete says.
In addition, operators can create their own signature beverages using some of the
technology provided by the machines.

9. Heat rises

Expect to see spicier, hotter menu items in 2015.

We know there will be more attention given to unique menu items or a twist on existing
ones, often using bolder flavors and multicultural influences, NPDs Riggs says.
Consumers are increasingly knowledgeable about spicy foods.
For instance, its been really interesting how much they understand different levels of
peppers, not just between mild and hot. You hear about hot foods, pickled food like kim chi,
and restaurants can do many things to use or reference these flavors, like put a garnish on a
sandwich, making it easier to have that first level of adventure.
Whiteman calls the constant search for new flavors restless palate syndrome, and says that
sweet and spicy is on the rise, along with sriracha and pungent, pickled ingredients.
The American palate has been so corrupted by salt, fat, pepper, and sugar, he says, that
restless palate syndrome is reacting by searching for even more aggressive taste thrills.

Franchise trends that entrepreneurs can't miss in 2015

Tags: Trends for 2015, franchise trends 2015, franchise industry in 2015
BY TFW BUREAU | JANUARY 05, 2015 | COMMENTS ( 0 ) |

Franchising is still not treated as a separate industry which makes many things difficult at
various levels. Seeing the growth of the industry and most brands now expanding via
franchising, it becomes vital to identify franchising as a separate segment in India. As per
Francorp, franchise business model is the most preferred model for expansion by most
brands. In India franchise industry is estimated at $24 billion with a year-on-year growth of 30
per cent. The industry size is expected to reach $35 billion by 2020.
With approximately 3,750 franchise brands in India and roughly 1000 franchise brands making foray
into franchising every year, the world of franchising will definitely offer more and better prospects to
numerous brands in 2015. Almost 90 per cent of the franchise business is setup over single unit.

It is no secret that Indians love fast food. For 2015, I see a lot of potential for quick serving
restaurant (QSR) brands in franchising; especially gourmet brands & specialty restaurants would
thrive. Another category which will flourish in 2015 would be primary healthcare. Also, 2015 will see
a lot of entrepreneurs adopting Small office Home office (SOHO) business model as real estate is a
major concern for start ups in metros.
- See more at: http://www.franchiseindia.com/articles/research/latest-trends/Franchise-trends-thatentrepreneurs-can-t-miss-in-2015-724/#sthash.hGWNj5VB.dpuf

India's fast-food industry is

becoming a major market
Vaishali Gauba
Thursday, 2 Apr 2015 | 2:46 PM ETCNBC.com

12
COMMENTSJoin the Discussion
McDonald's entered India in 1996, against the backdrop of a market that was hesitant to try fast
food and was still dependent on the "tiffin" lunch boxes many lug to work.
Two decades later, things have changed. India's fast-food industry is
expected to double in size between 2013 and 2016, to $1.12 billion,
according to the Economist Intelligence Unit. And demographic trends mean
it could become the next mega-market for international fast food players.
The country's fast-food market today is only one tenth the size ofChina's,
said Ajay Kaul, CEO of Jubilant FoodWorks, a company that grants franchises
in India for Domino's Pizza and Dunkin Donuts. But unlike China, which saw a
decline in fast-food sales last year, India's market is expected to grow,
thanks to changing consumer preferences and the largest youth population
on earth.
"I would think it's a revolution waiting to happen," Kaul said.

India's population stands at 1.2 billion, but it has only a little over 2,700
chain fast food outlets, leaving most people unreached, according to
Euromonitor International. Fast food has yet to broadly expand beyond the
largest cities. India also has a new prime minister, Narendra Modi, who has
been a vocal advocate of increased foreign direct investment.
Read MoreMcDonald's outlook negative, but wage hike helps: analyst
"The [quick-service restaurant] market is still very nascent, and there is ample space for more
and more brands to come in and coexist," saidAmit Jatia, vice chairman of Westlife
Development, a firm that operates McDonald's restaurants in western and southern India.
Jatia plans to establish 175 to 250 McDonald's restaurants in the next five
years across west and south India.
McDonald's tweaked about 70 percent of its menu for the Indian market,
according to Euromonito r. That meant staying away from beef in a country
where cows have religious significance, and appealing to a population that
tends to enjoy spicy food with options like McSpicy Paneer and Chicken
Maharaja Mac. They've also opened some 100 percent vegetarian
restaurants. (That said, contrary to perceptions, nearly 70 percent of India's
population is non-vegetarian.)
"We have localized our menu and due to this, we are not just seen as an
international brand, but one which the people of India feel comfortable with,"
said Jatia.
Read MoreFast restaurants that are growing faster than Chipotle

KFC, owned by Yum! Brands, had a slight edge over McDonald's because of its chickencentered menu, which has worked well in India, said Arvind Singhal, chairman of Technopak, a
management consulting firm in India.
While the U.S. chains have "Indianized" their menus, Singhal said that only partly explains the
rising appeal of fast food in India.

The country has 356 million people between the ages of 10 and 24, giving it the world's largest
youth population, according to a United Nations report. With more young people entering the
workforce daily, growth in the economy, a rising female work force, and increased mobility
among consumers, the traditionally difficult Indian market has become hungry for a more diverse
menu, Singhal said.
A challenge for America's fast-food joints in India has been to maintain the cohesion of the
global brand while still appealing to the local market, said Kaul of Jubilant.
"There is an extent for localization," Kaul said. "You can't tamper with the
global brand, it has to be same as anywhere else in the world."
Kaul emphasized that a market like India, long dominated by homegrown
businesses, can be targeted through strategies other than just
customization. Domino's introduced its 30-minutes-or-free delivery in India,
for example, despite the country's famously difficult traffic jams. Today,
Domino's has more restaurants in India than any Western competitor does,
with more than 850 locations. McDonald's runs only 369 locations.
Read MoreGlobal middle class hungers for good ol' US fast food
Domino's now generates more than 17.2 billion rupees ($277 million) in
revenue, compared with $222 million for McDonald's. Domino's, which is
valued at $1.6 billion in India, has tried expanding its business by getting
Indian consumers to view pizza as a meal replacement, and not just a snack,
Kaul said.
When it comes to the fast-serve coffee industry, most Indians still refrain
from the American habit of daily, morning drinking before and during work.
To get around the cultural challenge, Dunkin Donuts entered the food
market, offering fast-food sandwichesthe only country where the chain
does so.
"What's important for an American brand to understand is that the Indian
terrain is atypicalconsumers are clearly most demanding, and there is too
much focus on food," Kaul said.

India QSR sector struggles for growth

24 April 2015

NEW DELHI: International restaurant brands that have expanded into India are struggling to
maintain their initial momentum and some are turning to discounts to attract customers.
For example, Yum! Brands, which owns the Pizza Hut, KFC and Taco Bells brands, reported an
11% year-on year decline in like-for-like sales in the first quarter of 2015.
It attributed this to "continued softness in the overall macro environment and consumer
sentiment", although this view stands at odds with the findings of the Nielsen Consumer
Confidence Index, which has charted a growing optimism, to the point where online urban
India consumers were by the end of 2014 the most confident in the world.
The Economic Times noted similar slowdowns at other large chains, including Domino's Pizza
and Dunkin' Donuts, both owned by Jubilant FoodWorks, and McDonald's.
Whatever the current situation, Yum! Brands remained positive on the future, as it plans to
open more than 100 new restaurants in 2015.
Getting people through the doors, however, is likely to require significant promotional
activity. Both Domino's and Pizza Hut, for example, are already running "buy one, get one free"
offers on different days of the week, while McDonald's has a cash back offer which can be used
on a mobile recharge site.
Coffee chains seeking a similar demographic are also coming up with promotional offers
Starbucks is offering 40% discount vouchers to people buying at certain times and that,
according to one industry figure, is part of the problem for the eating-out sector.
"The QSR and cafe industry is getting into a circular firing-squad formation, trying to kill each
other to grab market share, as if this is the only way to grow in an early stage growth market,"
said Jaspal Singh Sabharwal, partner at Everstone Capital, local master franchisee for Burger
King.

He suggested that one factor that had slowed the market was that millennials were spending their
money on online deals for fashion and phone products, so leaving less for eating out.

KFC
From Wikipedia, the free encyclopedia

This article is about the worldwide fast food chicken restaurant chain. For other uses, see KFC
(disambiguation).

KFC

Type

Subsidiary

Industry

Restaurant

Genre

Fast food

Founded

Sanders Court & Cafe:March 20,

1930 in North Corbin, Kentucky
First franchise:September 24, 1952
in Salt Lake City, Utah

Founder

Harland Sanders

Headquarters

1441 Gardiner Lane

Louisville, Kentucky

United States
Number of

18,875 (2013)[1]

locations
Key people
David C. Novak (Yum!
Brands Chairmanand CEO)[2]
Muktesh Pant (KFC CEO)[2]
Roger Eaton (Yum! COO and KFC
President)[2]
Fried chicken

Products

chicken sandwichs
wraps
French fries
soft drinks
salads
desserts
breakfast
Revenue

US$23 billion (2013)[3]

Parent

Yum! Brands

Slogan

Finger Lickin' Good

Website

www.kfc.com
This box:
view
talk
edit

KFC (short for Kentucky Fried Chicken) is a fast food restaurant chain that specializes in fried
chicken and is headquartered in Louisville, Kentucky, in the United States. It is the world's
second largest restaurant chain (as measured by sales) after Mc Donalds, with 18,875 outlets in
118 countries and territories as of December 2013. The company is a subsidiary of Yum! Brands,
a restaurant company that also owns the Pizza Hut and Taco Bell chains.
KFC was founded by Harland Sanders, an entrepreneur who began selling fried chicken from his
roadside restaurant in Corbin, Kentucky, during the Great Depression Sanders identified the
potential of the restaurant franchising concept, and the first "Kentucky Fried Chicken" franchise
opened in Utah in 1952. KFC popularized chicken in the fast food industry, diversifying the market by
challenging the established dominance of the hamburger. By branding himself as "Colonel Sanders,"
Harland became a prominent figure of American cultural history, and his image remains widely used

in KFC advertising. However, the company's rapid expansion saw it overwhelm the ageing Sanders,
and in 1964 he sold the company to a group of investors led by John Y. Brown, Jr. and Jack C.
Massey.

KFC was one of the first fast food chains to expand internationally, opening outlets in Canada,
the United Kingdom, Mexico, and Jamaica by the mid-1960s. Throughout the 1970s and 1980s,
KFC experienced mixed fortunes domestically, as it went through a series of changes in
corporate ownership with little or no experience in the restaurant business. In the early 1970s,
KFC was sold to the spirits distributor Heublein, who were taken over by the R.J. Reynolds food
and tobaccoconglomerate, who sold the chain to PepsiCo. The chain continued to expand overseas
however, and in 1987 KFC became the first Western restaurant chain to open in China. The chain

has since expanded rapidly in China, which is now the company's single largest market.
PepsiCo spun off its restaurants division as Tricon Global Restaurants, which later changed its name
to Yum! Brands.
KFC's original product is pressure fried chicken pieces, seasoned with Sanders' recipe of 11 herbs
and spices. The constituents of the recipe represent a notable trade secret. Larger portions of fried
chicken are served in a cardboard "bucket", which has become a well known feature of the chain
since it was first introduced by franchisee Pete Harman in 1957. Since the early 1990s, KFC has

expanded its menu to offer other chicken products such as chicken fillet burgersand wraps, as
well as salads and side dishes, such as French fries and coleslaw, desserts, and soft drinks, the
latter often supplied by PepsiCo. KFC is known for its former and current slogan "Finger Lickin'
Good", which was replaced by "Nobody does chicken like KFC" and "So good" in the interim.

Fast food chain KFC partners IRCTC, to serve meals

on trains
ET Bureau Jul 21, 2015, 06.40PM IST

NEW DELHI: Yum Brands owned KFC said late on Tuesday that it has entered into a partnership with the
Indian Railway Catering and Tourism Corporation ( IRCTC) to launch a delivery system for consumers on
trains.
The facility is available on 12 trains passing through New Delhi railway station and will be expanded to
Vishakhapatnam, Hyderabad and Bengaluru stations over the next 10 days.

The service will initially be limited to trains which lack pantry cars and subsequently be expanded to trains
like Rajdhani and Duronto, the company said in a statement.
Dhruv Kaul, chief marketing officer at KFC said "In India, train journeys and meals are inextricably linked.
This initiative gives us a great opportunity to bring KFC to consumers even when they are travelling. We
intend to expand the service to other stations over the next few days."

PIL seeks testing food from retail outlets selling KFC,

Nestle, and other brands
PTI Jul 22, 2015, 11.10PM IST

MADURAI: The Madras High Court today ordered notice to the Centre and Tamil Nadu on a PIL seeking
constitution of an expert committee to collect and test random food samples from retail outlets in the state
of Kentucky Fried Chicken and those selling Nestle products, among others.
Petitioner R Devarishi, an advocate, also sought similar action on YUM products, KurKure, Heavens
Chickens and Marrybrown and to file a report within a stipulated time.
Justices S Manikumar and G Chockalingam then ordered notice to the Home Secretaries of the union
government and Tamil Nadu and sought their replies in four weeks.
Devarishi also sought cancellation or withdrawal of all licenses to these products by conducting a
preliminary enquiry into ingredients of the eatables and shutting of all wholesale and retail outlets if the
enquiry proved positive and the samples contained 'poisonous substances.'
He submitted that food analyst A V Krishna Kumari from Andhra Pradesh had confirmed the presence
of E-coli and salmonella bacteria and concluded that samples from five KFC outlets in Hyderabad were
unsafe for consumption.
However, KFC has claimed there was no possibility of any microbial developments in its food as it was
freshly cooked at 170 degrees, he said and pointed out that Telagana food lab tests had revealed KFC
samples contained harmful Pathogens.
The petitioner submitted that Andhra Pradesh Lokayuktha had issued notices to that state and Telangana,
asking them to submit a report by August 5 after NGO 'Balala Hakkula Sangham' approached it, seeking
orders to both governments to close down KFC outlets in view of the 'harmful pathogens' in the food.
Devarishi said new diseases were cropping up and causing untold health hazards and causing premature
deaths. Though he had sent representation to the officials concerned, seeking testing of the food, no
action had been taken so far and so he had moved court, the petitioner said.

KFC targets women customers

Jul 16, 2003, 12.14am IST

KFC IS aiming to broaden its appeal to women and develop a healthier image with the launch of its new
chicken salad, which will be backed by a TV campaign created by Bartle Bogle Hegarty. The spot, called
"street", is the latest execution in BBH's "got chicken, got soul" campaign, which aims to reposition KFC
as soul food by highlighting the social experience people share when eating its food.
"Over the past five years, we have introduced a number of innovations to broaden our appeal, and
lunchtime has been one of the key areas for growth," Claire Harrison-Church, the marketing director at
KFC, said. The ad opens on a shot of a young man climbing out of a first-floor window with a girl passing
out stereo equipment. Funky music starts to play as a group of friends proceed to pass out a sofa and
armchair so they can enjoy the beautiful day outdoors.

The film cuts to a woman sneaking a piece of chicken from a salad before taking it outside for everyone to
share. The ad closes with everyone laughing and having a good time while sharing the food. The
commercial was art directed by David Monk and written by Matt Waller. Direction was by Luke Scott
through RSA Films.

Media planning and buying is through ZenithOptimedia. KFC kicked-off the new soul food campaign in
March with two 30-second executions, entitled "hi-fi" and "soul", to promote its new, improved burger and
Mega Bucket respectively.

Yum! Brands, which owns KFC and Pizza Hut, says

Narendra Modis arrival hasnt turned around sentiment
Sagar Malviya & Ratna Bhushan, ET Bureau Jul 17, 2015, 04.00AM IST

MUMBAI/NEW DELHI: Yum! Brands, which owns KFC and Pizza Hut, isn't feeling too cheery about India
these days. Yum, in fact, is glum. After all, the economic outlook was supposed to get transformed after
the new Bharatiya Janata Party government led by Narendra Modi took over last year. But Indian
consumers are holding on tight to their cash and staying resolutely away from fast food.

"I think we did expect with the Modi government change that there might be a sort of perceptible change
in consumer perception and... we haven't seen that," Yum! Brands Global Chief Executive Officer Greg
Creed said in an investor call late on Wednesday, among the first corporate chiefs at that level to voice
disappointment about India's performance.
Yum has reported a decline in samestore sales for the seventh straight quarter in India, indicating a
continued slowdown in the country's fast-food market despite fighting back with cheaper menu items.
Creed does expect things to improve though. "In the long term, there is no reason not to (be optimistic)...
there is massive population and urbanisation of that population and there is obviously underlying
economic growth," he said.

KFC rejects presence of microbes in company's

products
PTI Jul 4, 2015, 10.24PM IST

NEW DELHI: Kentucky Fried Chicken (KFC) today refuted allegations of harmful bacteria present its food
products and said it will take legal action to protect the brand reputation from vested interests "spreading
misinformation".
"There is no possibility of any microbial development in our food, which is freshly cooked at 170 degrees
Celsius. Our food items are perishable and meant for immediate consumption," a KFC spokesperson
said.
Yesterday a petition was filed in Madras High Court seeking cancellation or withdrawal of licences given
to 'YUM' products.
A company spokesperson said that only brand 'KFC' is part of Yum Brands.
A report on the petition filed yesterday had mentioned Kurkure as a Yum product.

"We are aware of the issue in Hyderabad, where false claims have been made against the brand by an
organisation. We strongly refute the allegations made against us.
"We are cooperating with the authorities to resolve this matter and are taking necessary legal action to
protect our brand reputation from vested interests spreading misinformation," the spokesperson said.
The samples of KFC products were taken from five outlets in Hyderabad on June 18 this year and A V
Krishnakumari, a food analyst, had confirmed the presence of E.coli and salmonella bacteria, the petition
claimed.

The Maggi effect: How buyers of popular brands like

Parle, KFC, Wendy's & others are turning into activists
RATNA BHUSHAN & SAGAR MALVIYA, ET Bureau Jun 29, 2015, 01.08AM IST

NEW DELHI | MUMBAI: Biscuit maker Parle Products' customer care desk has been getting at least five
calls a day from irate buyers. The conversation usually goes like this it starts with the person having
found some sort of contaminant and ends with a demand for compensation ranging from Rs 5,000 to Rs 5
lakh. Some even warn the country's largest food company that if it doesn't cough up, they'll go to the
media and even the regulator.

The food industry is calling it the Maggi effect a masala mix of heightened concern about food
safety and the prospect of being able to benefit from the paranoia that's gripped companies
since Nestle was forced to withdraw its noodles because they contained excessive lead and mislabelling
of monosodium glutamate (MSG) content.
Ramesh Chauhan, chairman of Bisleri International and a member of the family that runs Parle, is an
industry veteran. "Consumers are panicking," he said.
"Some are raising genuine issues, which is good. But some are taking advantage of the
existingenvironment," said Ramesh Chauhan, chairman of Bisleri International.

KFC challenges claims of presence of germs in its food

PTI Jun 27, 2015, 01.38AM IST

HYDERABAD: A local NGO has alleged that the products of fast-food giant KFC were unsafe for
consumption, but the company refuted the charge saying it was an attempt to malign its reputation.
"Lab tests conducted by Bala Hakkula Sangham concluded that KFC (product) is harmful. It showed that
harmful substances like E Coli and Salmonella (bacteria) were present in KFC (product)," Bala Hakkula
Sangham (Andhra Pradesh Child Rights Association) president Anuradha Rao said in a media release
here.

The samples were tested at a Telangana government laboratory, the NGO said today, adding that it had
approached the Lokayukta with a request to direct the governments of Telangana and Andhra Pradesh to
initiate action against the company.

But KFC dismissed the allegation, saying it was an attempt to malign its reputation.
"This alleged report is a case of false allegation. We have no knowledge of the sample being collected
from any of our stores and in what condition it has been transported for this alleged test. This is a
perishable food item meant for immediate consumption.
"We have not received any intimation from any authority in this regard. In any case, there is no possibility
of any microbial development in our food which is freshly cooked at 170 degrees Celsius. We would urge
you to verify all the facts before reporting this matter. Given this is an attempt to wrongly malign our brand
reputation, we would strongly pursue this case and seek a clarification from the concerned authorities," a
KFC spokesperson told.

KFC founder Colonel Sanders didn't achieve his

remarkable rise to success until his 60s
Business Insider Jun 26, 2015, 10.13AM IST

KFC's current ad campaign stars a cartoonish Colonel Sanders played by "Saturday Night Live" alumnus
Darrell Hammond, but the fast-food icon was a real person who followed an unlikely path to creating a
multibillion-dollar international company.
The real Col. Sanders was an entrepreneur who didn't become a professional chef until he was 40, didn't
franchiseKentucky Fried Chicken until he was 62, and didn't become an icon until after he sold his
company at 75.
According to a 1970 New Yorker profile by William Whitworth, as well as biographies from Bio and the
University of Houston, here are the highlights of the Colonel's remarkable rise to success.
Harland Sanders was born in 1890 and grew up on a farm in Indiana. When he was 6 years old, Sanders'
father died, leaving him to take care of his younger brother and sister while his mom spent long days
working. One of these responsibilities was feeding his siblings, and by age 7 he was already a decent
cook, according to the New Yorker.
His mom remarried when he was 12. Because his new stepfather didn't like the boys around, Sanders'
brother was sent to live with an aunt while he was sent to work on a farm about 80 miles away.
Sanders soon realized he would rather work all day than go to school, so he dropped out in the seventh
grade.
In addition to a stint in Cuba with the Army, Sanders spent the first half of his life working a series of odd
jobs, including stoking the steam engines of trains throughout the South, selling insurance, selling tires,
making lighting systems, and operating a ferry boat.
He acquired a service station in Corbin, Kentucky, in 1930 and began serving classic Southern dishes to
travelers. The location became known for its food, and Sanders eventually got rid of the service station's
gas pump and converted the location to a full-fledged restaurant.

His breakthrough came in 1939 when he found that frying his chicken and its signature "11 herbs and
spices" in a new device, a pressure cooker (different from the ones used today), resulted in the ideal
consistency he had been looking for.
Sanders' restaurant enjoyed great popularity over the next decade, and in 1950 the governor of Kentucky
named him colonel, the highest title of honor the state can give. Sanders began dressing the part,
adopting the white suit and Kentucky colonel tie that would help make him a pop-culture icon.
In 1952, he made a deal with his restaurateur friend, Pete Harman, to sell his chicken dish as "Kentucky
Fried Chicken" in exchange for a 4-cent royalty on every piece sold. After it became a top-selling item,
Sanders made the same deal with several other local restaurants.
Things were going great, but when a new interstate bypassed Sanders' restaurant, it spelled doom.
He sold the location at a loss in 1956, leaving his $105 monthly Social Security check as his only income.
Sanders then decided that he was not going to settle for a quiet retirement.
A KFC and Sanders Cafe sign at the site of Sanders' Corbin, Kentucky, restaurant where he developed
his signature fried chicken.
Since he'd closed his restaurant, the Colonel decided to dedicate himself fully to the franchising side
project he'd started four years earlier.
He hit the road with his wife, the car packed with a couple pressure cookers, flour, and spice blends. He
would enter a restaurant, offer to cook his chicken, and then make a deal if the owner liked what they
tasted.
By 1963, Sanders was fielding franchise requests without having to put in the legwork, and had more than
600 restaurants across the US and Canada selling Kentucky Fried Chicken. That October, he was
approached by John Y. Brown, Jr., "an aggressive young lawyer" as the New Yorker puts it, and a venture
capitalist named Jack C. Massey who wanted to buy the franchise rights.
Sanders was initially reluctant, but after weeks of persuasion, he agreed to sell his rights for $2 million
($15.1 million in 2015 dollars) in January 1965, and the deal went through in March.
Under the contract, the company Kentucky Fried Chicken would establish its own restaurants around the
world and would not compromise the chicken recipe. Sanders was to have a lifetime salary of $40,000
(later upped to $75,000), a seat on the board, majority ownership of KFC's Canadian franchises, and
would serve as the company's brand ambassador.
Sanders wasn't happy to let go of his baby, but at 75, he decided that it would be best to see his company
continue to grow beyond his capacity.
The New Yorker profile noted that some of his friends believed Sanders was shorted on the deal, but it
also shows that Sanders turned down stock in the company and did not negotiate for a higher price.
It seems Sanders pursuit was never really about becoming rich, but rather about becoming renowned for
his food. That's why he constantly grumbled and swore about the more profitable but lower quality gravy
that the corporate KFC began producing.

Burger chain Wendy's to steer clear of cut-throat price

war led by McDonald's and KFC
Ratna Bhushan, ET Bureau May 6, 2015, 04.28AM IST

NEW DELHI: Wendy's, the world's third largest burger chain that opens its first store in India on
Wednesday, will sell burgers at Rs 59 and above, steering clear of a cut-throat price war led by McD's
and KFC that sell burgers for Rs 25-35 upwards. "Competition is playing the Rs 30 game but you can't do
quality at that price," Wendy's global presidentDarrell van Ligten told ET in an exclusive interaction.
"We are starting at Rs 59 because we believe that's where quality comes in," he said. Its starting menu
has 11 vegetarian and 10 non-vegetarian products with burger prices going up to about Rs 200 apiece.
Wendy's is the third largest burger chain in the world after McDonald's and Burger King. Jaspal Singh
Sabharwal, MD at private equity firm Everstone Capital that partners Burger King in India, agreed it is not
easy to do a quality product at less than Rs 30.
"It is a strategic call that the brands take. You can play the sub-Rs 30 game by re-engineering the product
build and certain consumers don't mind it because they understand the price-value equation very well.
For brands, this means lower per unit profits but much higher penny profits driven by huge traffic and an
added opportunity to up-sell other items like fries and beverages," he said.
According to Sabharwal, the price elasticity at lower price points is huge in India. "You can sell more than
700 burgers a day at Rs 27 per unit but this drops to 250 if you increase price to Rs 35 per unit," he says.
Prices at Burger King start atRs 35, McDonald's sells burgers upwards of Rs 27, and KFC sells burgers
starting at Rs 29. Wendy's Ligten admitted that the firm had lost the first mover advantage in India, but
hinted that coming in late has its advantage. "Thanks to them (McDonald's and KFC), we don't have to
educate Indian consumers about western QSRs (quick service restaurants)," said Ligten, a former
employee at Yum! that owns KFC and Pizza Hut chains.
Consumption of western fastfood restaurants and cafes has been slowing down with all leading players
reporting negative or single-digit growth for several quarters now. Firms are trying to counter this by
dropping prices or offering heavy discounts and promotions. Analysts say amidst pressures to step up
volumes and profitability, value meals are leading consumers to downtrade but not helping in stepping up
profits. Yum!, which operates KFC, Pizza Hut and Taco Bell, reported 11% year-on-year decline in its
same-store sales growth for the quarter ended March. Jubilant FoodWorks, which operates Domino's and
Dunkin Donuts, has yet to announce its financial results for the quarter ended March.
Officials at Wendy's, however, feel there are enough consumers for 'quality' products. "People are eating
less pizzas and burgers here despite low prices because of the quality of the food," said Jasper Reid,
head of Sierra Nevada Restaurants, exclusive franchise partner to Wendy's in India. "New Delhi is no
different from New York. Consumers are the same everywhere. There's a flight towards quality," he
added. Sierra Nevada is a joint JV between UK firm International Market Management and domestic
firm Rolltainers. Sanjay Chhabra, director at Sierra Nevada, said it plans to set up 8-10 Wendy's
restaurants every year over the next five years or so.

After Starbucks, Pizza Hut, KFC same-store sales

growth hit 11% due to loss of appetite
Ratna Bhushan, ET Bureau Apr 23, 2015, 01.17AM IST

NEW DELHI: Days after coffee chain Starbucks announced big discounts to bring in volumes, Yum!
Brands, which operates Pizza Hut, KFC and Taco Bell outlets in India, has reported 11% year-on-year
decline in its samestore sales growth for the quarter ended March 31.
This was the fifth consecutive quarter when Yum! reported a fall in same-store sales growth (SSSG),
which had slipped 1% in the year-ago quarter ended March 2014, even as growth in the overall eating-out
industry continues to be slow with food inflation and slowing discretionary spends impacting consumption
of pizzas and burgers.

"The negative SSSG is reflective of the continued softness in the overall macro environment and
consumer sentiment. In our estimate, this in line with much of the category," a Yum! spokesperson told
ET.
The person said the company remains bullish on the long-term potential of the market and is well
positioned to make the most of it. "We are on track to open over 100 new restaurants in 2015, for the fifth
successive year, making us one of the largest and fastest growing restaurant companies in India," the
spokesperson said.
Yum! currently operates 431 Pizza Hut stores, 395 KFC stores and seven Taco Bell stores in the country.
It did not add any new store in the January-March quarter. Its on-year sales growth slowed down to 1% in
the quarter, down from 21% a year earlier.
Other big chains such as McDonald's and Jubilant FoodWorks which operates Domino's Pizza and
Dunkin' Donuts too have been reporting negative or single-digit growth over the past six quarters at
least, putting the industry under huge pressure to step up volumes and profitability.
According to Abneesh Roy, associate director, institutional equities research, at Edelweiss Securities,
the quick-service restaurant (QSR) space in the country has yet to witness any material improvement in
demand.
"Prices of key raw materials, mainly cheese and chicken, have been benign, which will be good for
players' margins. This could also reflect in more promotional activity to revive same store sales growth,"
Roy wrote in an investors note on Wednesday.
Most fast-food restaurants have been accelerating promotions, value meals and introducing meals at
lower price points to spur consumption. Analysts say value meals do lead to consumers downtrading, but
it isn't helping increasing profits.
The eating-out market in the country is estimated to be $94 billion, or about Rs 5,85,000 crore, but only
2% of it is organised with national and international food retail brands.
In China, Yum! reported both lower profits and revenue decline in the last quarter. Both sales and net
income dropped 9% from a year earlier in China, which analysts attributed to heightened competition.

Five star chicken prepares Rs 3,100-crore bucket to

take on KFC, McDonald's
ET Bureau Mar 27, 2015, 10.59AM IST

By RajiReddy Kesireddy
HYDERABAD: CPF (Charoen Pokphand Foods) which operates the Five Star Chicken small-format
quick-serve retail chain, that is taking on US multinationals like KFCand McDonald's, has drawn up an
aggressive expansion plan for India that includes investment of $500 million (Rs 3,100 crore).
CP Foods, a part of the diversified CP Group, that is Thailand's largest private enterprise with annual
sales of over $45 billion, is especially bullish about the Indian processed and packaged food industry.It
expects the company's food business, which now contributes 5% to revenue, to grow three-fold in the
next five years.
"We are planning to double the number of our 'Five Star Chicken' stores in the next five years and plan to
enter the packaged food business here in the next year or so," Sanjeev Pant, senior vice-president for the
food business told ET.
The investment of $500 million will go towards expanding all three units: shrimp, poultry and food.
CP Foods in India has 260 Five Star Chicken stores in Bengaluru, Chennai, Coimbatore, Mysuru, Kochi,
Salem, Kozhikode, Goa and Hyderabad. The company's revenue was $600 million (Rs 3,720 crore) last
year and is growing at 10-15% annually, he said. The shrimp seg ment contributes 50% to revenue,
poultry feed and farming 45%, and the newly-launched food business the rest.
"The booming online business in India would also provide us enough room to grow faster. We are now
talking to a few online food delivery players who can support us to take our products online", Pant said.
The company has been following a low-cost operating model for its small-format quick-service restaurants
by keeping the store area at 100-200 sq ft.

Call to boycott KFC, Pepsi, Coca Cola by Tamil outfit

PTI Mar 13, 2015, 06.21PM IST

CHENNAI: Alleging that the US was acting against the interest of Tamils in Sri Lanka, a Tamil outfit today
sought boycott of its products like KFC, Pepsi and Coca Cola and announced that it would stage a protest
in front of the American Consulate here tomorrow.
"Against America, which is trying to hurt the interests of Tamils in Sri Lanka let us boycott KFC, Pepsi,
Coca Cola," the outfit, May 17 Movement, said.

Fast food chains like KFC, Dunkin Donuts, McDonalds

& others take the spice route to success

Ratna Bhushan, ET Bureau Jan 23, 2015, 04.14AM IST

NEW DELHI: Fast food's hot new offerings in India are all, literally, hot. Fries, burgers, wraps from KFC,
Dunkin' Donuts and McDonald's that have high chilli quotient are among the best-selling products now.
And there's no better, and hotter, example than KFC's Flaming Crunch Chicken, flavoured with one of the
world's hottest chillies, the Assam-grown ghost pepper or 'bhut jolokia'.

Assam's ghost pepper is in the top ten of the world's hottest chillies and scores over one million in
Scoville Heat Unit, a measure of spiciness. Ghost pepper-flavoured Flaming Crunch Chicken is one of
KFC's most successful new launches in India, company officials say. Sales of crunch chicken have tripled
since its December launch across 350 stores. Chilli is the management's favourite flavour in Dunkin'
Donuts and McDonald's too.
For Dunkin', the Tough Guy Brute Burger is among the hottest burgers by taste and, six months after
launch, by sales. For McDonald's, McSpicy and Masala Grill are the fastest-growing categories.
Fast food's high chilli quotient, say chefs and industry executives, is another adaptation of western 'bland'
munchies for the Indian palate. "The Indian palate craves flavour intensity and a chilli and hotness
quotient - that's a base level truth," says Yum Restaurants' Marketing Director Dhruv Kaul. KFC is one of
Yum's brands.
"People want spicy, but not necessarily familiar spicy food," says Dev Amritesh, president and COO,
Dunkin' Donuts. McDonald's managers give you the same wisdom. The success of high chilli quotient
products, says the company's director for north and east, Kailash Agarwal, "clearly points to Indian
customers' strong and growing preference for such flavours".
But there's chilli and there's chilli, and just dousing a fried chicken or burger with the hot stuff won't do.
KFC managers say serious research went into picking bhut jolokia for flavouring the Flaming Crunch
Chicken.
KFC spent four months experimenting with various chillies, from Central America's chipotle chilli to South
East Asia's birds eye chilli. Assam's famous bhut jolokia won a tough contest and KFC executives say the
company's India operations may be the only one in the world using this chilli.
For Jubliant FoodWorks' operated Dunkin Donuts' too, hotness calls for research. Dunkin's wicked wraps
get their hotness from jalapenos and chipotle sauce.
To add more sting to its Tough Guy Brute Burger, Dunkin' added a mustard sauce. The recipe for that,
Dunkin' says, is a secret. The net effect on the taste bud is the favour of red chilli, instantly recognisable
to any Indian.
The seriousness with which fast food MNCs take their chilli plans is necessary, says Zorawar Kalra,
entrepreneur son of celebrity chef Jiggs Kalra. "Seasoning and differentiation is what's going to work,"
Zorawar says.Get it right when you make it hot - that's fast food's mantra in India now.