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CONFIDENTIAL: May be used only by KFC and its franchisees and licensees. Unauthorized use, sale, or reproduction is strictly prohibited. This
presentation may contain sales and other financial information. No reporting of past or anticipated results should be construed as a guarantee of future
performance. ©2014 KFCC
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• Understand Franchise opinions, attitudes and concerns regarding the business
• Partner with the AKFCF and entire Franchise community to turn feedback into action and strengthen our commitment to work together efficiently and effectively
• Evaluate how the overall Franchisor/Franchisee relationship has grown over the past year
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Total Franchise Participation: 241/572
3
42%58%Completed
Not Completed
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Statement Percentage Agree or
Strongly Agree
I believe we need to support both the high end (group meal) and
low end (individual meal) of our business
92%
I intend to attend the 2015 AKFCF Convention in February in Las
Vegas, NV
83%
I believe effectively leveraging technology is crucial to our brand’s
future
81%
I believe that our priority focus for simplifying operations for our
store teams should be in the BOH processes
78%
I believe we can and will turn around this great brand together 78%
4
= high scored item in 2013
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Statement Percentage Agree or
Strongly Agree
Nationally KFC consistently delivers operational excellence in all
4,500 restaurants16%
I believe we have made the RGM’s job easier than last year 16%
I am satisfied with the innovation pipeline 16%
I am satisfied with the overall leadership and direction provided
by KFCC Food Innovation20%
Financial data used to make business decisions is shared in a
timely and effective manner29%
Over the next 12-18 months, I would be interested in using the
Online Projection system in one or more of my MERIT
restaurants
29%
= low scored item in 2013
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Statement 2014 Score 2013 Score Difference
KFCC and Franchisees are making real
progress towards working
collaboratively in the spirit of mutual
trust, respect and partnership
73% 34% +39
I am satisfied with the overall leadership
and direction provided by KFCC
Marketing
55% 20% +35
Partnership – Overall Results 76% 44% +32
I am satisfied with the overall leadership
and direction provided by KFCC
Leadership Team63% 31% +32
I intend to attend the 2015 AKFCF
Convention in February in Las Vegas,
NV
83% 52% +31
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Statement 2014 Score 2013 Score Difference
I am satisfied with the support I receive
from the MERIT Restaurant Helpdesk55% 70% -15
I am satisfied with the support I receive
from MERIT Data Management63% 71% -8
I am satisfied with the taste and flavor
of our current core menu products40% 48% -8
Food Innovation – Overall Results 42% 49% -7
I believe that our priority focus for
simplifying operations for our store
teams should be menu item reduction
71% 78% -7
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Statement 2014 Score 2013 Score Difference
KFCC and Franchisees are making real
progress towards working collaboratively
in the spirit of mutual trust, respect and
partnership.
73% 34% +39
I believe we can and will turn around this
great brand together.78% 54% +24
Partnership - Overall Results 76% 44% +32
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Statement 2014 Score 2013 Score Difference
I believe profitable growth is the brand’s
#1 priority.75% 58% +17
Brand Strategy - Overall Results 75% 58% +17
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Statement 2014 Score 2013 Score Difference
KFCC provides open and frequent communication
regarding brand strategy, initiatives and important
decisions.59% 61% -2
I value KFCC Town Hall Calls with specific business
topic agendas, best practices, recognition and pre-
read emails.68% 69% -1
I intend to attend the 2015 AKFCF Convention in
February in Las Vegas, NV.83% 52% +31
Team KFC is an effective tool to access the most
important and relevant information I need to run my
business.74% 69% +5
The Association of Kentucky Fried Chicken
Franchisees (AKFCF) website is an effective tool to
access the most important and relevant information I
need to run my business.
55% 42% +13
Financial data used to make business decisions is
shared in a timely and effective manner.29% 27% +2
Communication - Overall Results 61% 58% +3
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Statement 2014 Score 2013 Score Difference
KFCC Operations 54% 27% +27
KFCC Training/Human Resources 43% 39% +4
KFCC Marketing 55% 20% +35
KFCC Food Innovation 20% 14% +6
KFCC Technology 38% 37% +1
KFCC Franchise Administration 39% 35% +4
KFCC Leadership Team 63% 31% +32
The National Council and Advertising Cooperative
(NCAC) 50% 26% +24
The Operations Excellence Committee (OEC) 47% 31% +16
The Association of Kentucky Fried Chicken
Franchisees (AKFCF) Board & Committees 63% 49% +14
Restaurant Supply Chain Solutions (RSCS) 50% 65% -15
Leadership/Representation - Overall Results 47% 34% +13
I am satisfied with the overall leadership and direction provided by…
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Statement 2014 Score 2013 Score Difference
We have clear operations performance standards for
our restaurants.71% 56% +15
Nationally KFC consistently delivers operational
excellence in all 4,500 restaurants.16% 13% +3
I consistently deliver operational excellence in my
restaurants.63% 69% -6
I believe that our priority focus for simplifying
operations for our store teams should be menu item
reduction.71% 78% -7
I believe we have too many products/configurations. 75% 81% -6
I believe that our priority focus for simplifying
operations for our store teams should be in BOH
processes.78% 84% -6
I am satisfied with the quality and functionality of our
current packaging.38% 36% +2
I believe we have made the RGM's job easier than
last year.16% 12% +4
Operations - Overall Results 54% 58% -4
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Statement 2014 Score 2013 Score Difference
Relevant tools, knowledge and training are provided
to achieve operational excellence.58% 55% +3
Training is easily accessible to franchisees,
managers and team members.51% 51% No Change
Learning Zone is an effective tool for accessing
training material and tracking completion of training
standards.49% 53% -4
I am satisfied with the level of training I received
during implementation.48% 50% -2
I have effective resources and capability to effectively
use the MERIT system.54% 52% +2
Training/Human Resources - Overall Results 53% 52% +1
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Statement 2014 Score 2013 Score Difference
Our marketing plan is strategically sound. 41% 12% +29
I believe we need to support both the high end (group meal)
and low end (individual meal) of our business.92% 91% +1
Our marketing plan is capable of driving +5% comp sales
growth.36% 11% +25
I am satisfied with our advertising. 39% 15% +24
I am satisfied with our merchandising. 38% 28% +10
Our marketing plan development process is disciplined with
proper lead time.43% 25% +18
Our National Council and Advertising Cooperative (NCAC)
process is efficient and effective.36% 20% +16
I believe the best way to improve consumer value perception
is by optimizing price-value across the menu at all KFC
restaurants.47% 41% +6
I believe the best way to drive transactions is through the
incorporation of lower-cost menu options across all KFC
restaurants.37% 37% No Change
I believe the best way to improve value perception is through
delivering hot and fresh product within 5 minutes to all KFC
guests.76% 72% +4
Marketing - Overall Results 48% 34% +14
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Statement 2014 Score 2013 Score Difference
I am satisfied with the taste and flavor of our current
core menu products.40% 48% -8
I am satisfied with the innovation pipeline. 16% 11% +5
I believe our side items represent a tremendous
marketing opportunity.73% 71% +2
Food Innovation - Overall Results 42% 49% -7
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Statement 2014 Score 2013 Score Difference
I believe effectively leveraging technology is crucial to
our brand’s future.81% 67% +14
I am satisfied with the support I receive from the
MERIT Restaurant Helpdesk.55% 70% -15
I am satisfied with the support I receive from MERIT
Data Management.63% 71% -8
The features of the MERIT system help me run better
operations.63% 58% +5
Over the next 12-18 months, I would be interested in
using the Online Projection system in one or more of
my MERIT restaurants.29% 30% -1
Technology - Overall Results 58% 59% -1
Statement Yes No
I am a current user of the MERIT system. 88% 12%
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REPRESENTATIVE COMMENTS
•“We must continue to make our operations less complicated”
•“By simplifying BOH and putting more emphasis on customer service and speed of service”
•“By keeping in mind simplification when coming out with new products”
•“Limit products that are not selling (grilled, hot wings)”
•“Continue to improve Learning Zone”
•“More RGM Training Seminars”
COMMENT TOPICS, RANKED
(% OF COMMENTS)
19
•Ops Simplifications (20%)
•Product (14%)
•Training (10%)
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ibuteREPRESENTATIVE COMMENTS
•“Being able to make enough profit to survive”
•“Costs to operate”
•“KFC being around in ten years”
•“The relevance of our brand”
•“KFC consistently fails to deliver relevant products”
•“Lack of food innovation”
COMMENT TOPICS, RANKED
(% OF COMMENTS)
20
•Financial Model (36%)
•Brand Future (15%)
•Product (14%)
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ibuteREPRESENTATIVE COMMENTS
• “The quality of leadership, both KFCC and franchise, and their ability to move this business in a strategic way forward”
• “Our leadership team turning this brand around”
• “New food items to help bring attention and customers to KFC”
• “Popcorn chicken coming back”
• “Better relations between KFCC and franchisees”
• “A dedicated team working together to attain goals that lead to greater profit”
COMMENT TOPICS, RANKED
(% OF COMMENTS)
21
•Leadership (24%)
•Product (15%)
•Partnership (12%)