Kfc Issues in Uk

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BE31503 INTERNATIONAL HOTEL MANAGEMENT

LECTURER : DR. MAZALAN MIFLI

GROUP ASSINGMENT

TITLE: ISSUES ABOUT KFC IN THE UK

A VERY BAD WEEK FOR KFC IN THE UK

This issues was happen In February 2018, this occur when Civil engineer Dean Kenny had just returned from his lunch when he spotted five delivery crates on the side of the road containing 100kg of chicken, just minutes from the nearest KFC branch (Mann, 2018). When this happened it become a weird issues because how this KFC product can be put on the side of the road. This can make the KFC reputation become bad. Plus, because of that KFC also losing their customer. This because many customer change to another fast-food restaurant because of bad serving that KFC offer.  Furthermore, there have the factor that was bring this problem occur.

1. Failure to manage it logistic

Recently, many KFC stores at United Kingdom temporary shutdown because shortage of the chicken happen. To inform their customers about this matter, KFC posted a full-page apology in two British newspapers Friday. Many factor that can cause KFC to run out of chicken supply. First factor is because of the failure in the supply chain between KFC and DHL. DHL fail to provide fresh chicken to KFC restaurant all around the UK on time as some problem occur during the delivery process. Besides that, DHL only have one warehouse to provide the chicken for KFC.  This means that KFC fail to manage it chicken supply properly with the new partner. This shortage will not happen if KFC choose a right partner to supply it chickens. With KFC have around 900 store across the UK region, one warehouse surely not enough to provide it if something happen during the delivery. This were happen on KFC chicken supply whereby the supplier of the chicken cannot deliver the chickens to KFC restaurant across UK as their having some problem that cannot be avoided. KFC published a list that only 338 of its 900 stores were still open and many of this stores offered limited menu besides restricted it opening hours. Rather than buy from another chicken company, KFC choose to temporary shutdown the stores as the want to maintain the quality of the chicken that this restaurant provide. Which means that, if they buy chicken from another company, they cannot guarantee the quality of the chicken and this can make the issues become worse. KCF need to manage their logistic department successfully if they do not want the same thing happen again in the near future.

1. Do not have contingency planning.

KFC has known around the world as one of the successful fast food restaurant. But this do guarantee that KFC will not face problem. As one of the biggest fast food restaurant and currently have 900 stores at UK. KFC must have contingency plan to cover if something happen for example shortage of the chicken. Because of not having this contingency planning, KFC has to temporary shutdown it stores around the UK as the supply for the chicken is not enough. This shows that contingency planning is very important. Because of this, KFC might face deficit in the revenue and can cause big lost amount for KFC also might hard to cover it. This lose might force KFC to have bigger target in term of their revenue for this year in order for them to cover such big amount of lose.