KFC has used franchising as an effective way to expand its business around the world for more than 20 years. KFC started its franchise business in Xi 'an on 1993. At present, KFC has nearly 20 franchised restaurants. In contrast, KFC's rival McDonald's currently has more than 300 branches in Chinese mainland, all of which are direct stores, and none of them are franchisees. Conditions for Franchisees KFC hopes that franchisees should be real operators in the catering service industry, with professional background and "practice" as the business direction, and can quickly master the basic knowledge of the industry and prove that they have the potential to expand and develop in a certain field. The franchisee must also be the owner, responsible for a considerable part of the required shares or funds. This is also a long-term business cooperation relationship. Because of this, KFC will start cooperation when it is completely satisfied with the franchisee's organization, financial situation and project plan. Franchise mode KFC's current way of developing franchise stores in China is not to let franchisees open their own stores after paying the franchise fee, but to let franchisees invest in buying an operating and profitable chain store. When transferring mature restaurants, franchisees don't have to start from scratch and can quickly integrate into KFC's operating system, thus greatly ensuring the success rate of franchisees. It is the most stable and convenient way for KFC and its franchisees. Considering the challenge of franchising in big cities, KFC only seeks applicants to join in Chinese mainland, where the non-agricultural population is more than 0/50,000 and less than 400,000, and the annual per capita consumption is more than 6,000 yuan. Of course, not all restaurants in these areas are suitable for joining. But if possible, KFC can give priority to franchisees' suggestions on site selection. Franchisees with new franchise fees will be authorized to operate an operating KFC restaurant, and the admission fee for each restaurant is more than 8 million RMB (excluding the purchase of real estate). The entrance fee is a transfer fee and an investment needed to buy a mature and profitable KFC restaurant. This depends on the investment, turnover and profitability of a KFC restaurant. From all angles, this has been carefully evaluated and is in the interest of all parties. At the beginning of the concession period, an initial concession fee of $35,000 must be paid. Continuing operating expenses include 6% of total sales royalties and 5% of advertising share fees. These rates and fees are set on the current basis and will remain unchanged for ten years after signing the franchise contract. Franchisees can arrange financing by themselves. According to the survey, successful candidates need to invest most of their shares (> 70%) in this project. The initial term of a franchise contract is at least ten years. In the future, franchisees must voluntarily engage in KFC franchise for more than ten years. Successful candidates will be required to participate in a 20-week comprehensive training program, including the following contents: assistant restaurant manager, restaurant manager, how to manage franchised restaurants, special introduction to headquarters, and small company management courses. In the process of training, the expenses of future franchisees are borne by themselves. Franchisees with catering and industry management experience can apply for exemption from certain training. It can be seen that behind the strict franchise rules is the interest relationship between KFC headquarters and franchise stores. The success of KFC depends on the success of each franchisee. The franchisor must give sufficient support to the franchisee. Only when every franchisee is profitable can the whole franchise system become stronger. On June 5438+065438+1October 13, 2000, among the five "2000 China Excellent Franchise Brands" recently announced by China Chain Store & Franchise Association, it belongs to KFC of Yum! China! Brands Group is specially recommended as the only foreign-funded international brand. Supplier Management From the first restaurant at the beginning of its establishment to more than 400 restaurants in 59 cities, 65,438+000% of chicken raw materials used by KFC are all from China, and in the past decade, * * * has consumed 608,265,438+0 tons of chicken. The rapid development of KFC has also led to the start and development of various related raw material supply industries. At present, about 85% of food and packaging materials in China are provided by domestic suppliers. Based on the principle of consistent interests and common progress, KFC has established a close strategic partnership with suppliers, from imparting brand-new management concepts to introducing advanced technologies, from active training and testing to actively supporting suppliers. Current situation of KFC suppliers: 25 chicken suppliers in 27 cities and regions are basically the best in the domestic chicken industry. Shandong Zhucheng Foreign Trade Group Co., Ltd., which has cooperated with KFC for five years, is the largest county-level foreign trade group company in China, and has established production and marketing links with 70% local farmers. The large-scale operation of Liaoning Dacheng Agriculture and Animal Husbandry Industry Co., Ltd. has solved the employment and income problems for 80% local farmers. At present, KFC's chicken orders account for 80% and 60% of Dashiqiao Factory and Battery Factory respectively. Promote the localization of foreign suppliers KFC is the business partner of Chia Tai Group, Nestle, Pepsi and other internationally renowned enterprises. These companies set up large factories in China, which further promoted the economic development of China in terms of investment, employment and technology transfer. At the same time, in order to establish long-term relations with suppliers, KFC has been actively encouraging foreign suppliers who have not yet entered China to set up factories in China. For example, Lambweston of the United States has invested heavily in agricultural production in China to develop methods to increase the yield of potatoes and corn; Henny Penny, who provides fried chicken pots for KFC, will develop a professional equipment assembly factory in southern China at the end of 1998. In the past two years, KFC has promoted the localization of 17 products that used to rely on imports. At present, about 85% of food and packaging materials in China are provided by domestic suppliers. In the next five years, KFC hopes to reach 65,438+0,000% of its raw materials from China as soon as possible. Evaluating the supplier's star system KFC suppliers often say: "All the manufacturers who have been evaluated by KFC's star system can easily pass the national ISO9002 quality certification." Star rating system is a global evaluation system for supplier management, which has been fully implemented in China since 1996. The evaluation system can help suppliers to improve product quality scientifically, strictly, objectively and fairly from five aspects, and has been regarded as a great welfare by suppliers all over the country since its implementation. The five aspects of star system evaluation are: quality: evaluating suppliers' ability to provide safe, stable and high-quality products; Technology: evaluate the level of suppliers in technical improvement and research ability; Finance: evaluate the financial status and support ability of suppliers; Reliability: evaluate the supplier's integrity and supply reliability; Communication: evaluate the communication system and ability between suppliers and Yum! The evaluation content involved in the five aspects is very detailed and highly operable: for example, whether the supplier equipped with metal detectors checks whether the machine runs normally every hour, and there are on-site records showing that he has done it; Whether the diameter, height and even hole size of the bread meet the standards required by KFC; Does the supplier have a written system and fixed pipeline to communicate with customers? Regular evaluation every three months to half a year and random evaluation throughout the year are evaluated by the technical department and purchasing department of the company, with a total score of 100. The year-end comprehensive score will determine the share of supplier business in the next year. For suppliers, KFC's strict evaluation system is not to eliminate suppliers, but to "strictly manage product quality from the source." From the initial selection of suppliers to step-by-step technical support and repeated training, the ultimate goal is to continuously improve the quality of raw materials of suppliers, so as to ensure that KFC can always provide safe, healthy and delicious fast food for consumers in China. Training and supporting suppliers: KFC's technical department and purchasing department complete the annual evaluation of suppliers with a star system, and at the same time conduct corresponding training for their respective weaknesses and deficiencies, so as to bring the international standard quality requirements of the catering industry to KFC suppliers. The technical department is mainly responsible for technology transfer, such as "separate feeding of male and female" technology, deep processing technology of chicken, phased slaughter technology, etc. ; The purchasing department often visits suppliers, actively holds exchange meetings, and arranges some inexperienced small enterprises to participate in the exchange meetings of experienced big suppliers to support the development of small suppliers. Among the suppliers who have benefited from KFC's long-term support, the most obvious one is Guangze Chicken Industry Co., Ltd. from Fujian. When Guangze cooperated with KFC on 1993, it was only a small-scale private enterprise. With the corresponding technology transfer and training of KFC every year, the supplier has now developed into one of the top 500 private enterprises in China, with an output value of 19971200,000 yuan, and has become a large local taxpayer. 1997, KFC's annual orders accounted for 70% of Guangze's total annual sales. In the first half of 1998 alone, KFC ordered about 750 tons of chicken from Guangze. The development of this enterprise has brought a series of influences to the local economy. From solving employment to poultry breeding and feed ordering, some related industries and employees have also got certain development opportunities. Corporate culture, if all kinds of rules and regulations and service standards are "tangible rules" to regulate employees' behavior, then it exists as an "intangible rule" in employees' consciousness. Corporate culture can be compared to the "gene" of behavior. It provides the core values of the enterprise through ceremonies and incentives, tells employees what goals are most important in the enterprise and what the enterprise advocates and discourages, and can guide and shape employees' attitudes and behaviors to work in the same direction. Therefore, the company's investment in corporate culture can often reduce the huge cost of human resource management. As a franchise enterprise, KFC's high-standard service quality is its lifeline and its capital to participate in the competition. To this end, KFC has created a strong corporate culture oriented by service awareness. While employees have accepted KFC's organizational culture, their various complicated rules and regulations have been deeply internalized in their hearts. "Restaurant Manager First" and "Restaurant Manager First" are the most important corporate cultures established by Yum! in China. Brand, which reflects the company's concept of attaching importance to the improvement of productivity and serving all first-line restaurants, and also encourages restaurants to take the initiative and launch healthy competition. At the annual meeting of Yum! Brand in China, hundreds of restaurant managers from all over the country will be awarded excellent medals for their outstanding achievements. Mr. Su, President of China Yum! The Golden Dragon Award, a gold medal engraved with flying dragons, will be awarded to senior employees with outstanding achievements, which is very distinctive and inspiring in China. The company will give special courtesy to restaurant managers who successfully complete the company's "champion test" assessment requirements in restaurant sales and management every year. They will fly from all over the world to Yum's headquarters. Then he was picked up by limousine to have dinner with President Novak. Qi Xudong, the restaurant manager in Suzhou, China, also took his new wife there last year and was received like a VIP. During the dinner, Novak and department heads will also present funny plastic food: "Chicken", "Giant Cheese" and "Talking Teeth" to praise the outstanding performance of these employees and make a promise of "Qi Xin will work together to achieve Excellence". Of all the enterprises owned by Yum! in China. Brand, not only enterprises, individuals, but also cooperative manufacturers and joint venture partners can grow. That is, "make concerted efforts and strive for perfection". For KFC employees, with the expansion of China market, their growth opportunities have emerged. Yum believes that it is very important to make personal career development plans for these young people. It is necessary not only to meet the young people's willingness to innovate and expand, but also to meet the personnel reserve needs of the long-term development of enterprises. At KFC, employees don't stay in one position for long. If you have worked in a position for two years, someone will come and pat you on the shoulder: why haven't you been promoted for so long? At present, all the restaurant managers in KFC have good academic qualifications, and they all grow up step by step from grass-roots restaurants. From managing a restaurant to managing four to five restaurants and seven to ten restaurants, and even managing a market. KFC's step-by-step career development channel allows every potential employee to see the hope of climbing. For suppliers, KFC not only brings opportunities for rapid growth, but also makes them more competitive in the market, which is conducive to their own development. Under the guidance of KFC's long-term goal, enterprises, employees, cooperative manufacturers and cooperative joint venture partners actively cooperate through communication to form a close team, which can achieve the result that the overall performance is far greater than the individual performance. At the annual meeting, the management departments, partners and suppliers in the group exchanged experiences on mutual cooperation and future development direction, strengthened communication among them, and enhanced the cohesion of the enterprise and the confidence in pursuing Excellence. Pay attention to details. "Please state the complete operation process of the change!" "Excuse me, Colonel, what kind of chicken are chicken nuggets made of?" The players on the stage are scrambling to give an answer to such a thorny question. This is the "Business Champion Challenge" that is being enthusiastically carried out at Yum!' s annual meeting. China's brand. Nearly 500 catering managers from 90 cities in China District, including Taiwan Province Province and Hongkong, were divided into several teams, one by one, and after being eliminated step by step, they finally competed for this year's "champion". There is no small matter in the service industry, whether it is food quality, service attitude, restaurant atmosphere ... the value provided by restaurants to customers is the sum of these small details. "Business Champion Challenge" embodies KFC's emphasis and pursuit of perfect service quality. The competition between modern enterprises is, in the final analysis, the competition for talents, which has become an indisputable fact in the business community. For the catering service industry, staff training is conducive to improving staff culture, technical quality, service quality of chain stores, and building a platform for the company's business objectives. In order to develop rapidly in China and achieve long-term goals, KFC has implemented a localization strategy in human resources, taking employee training as an important core competitiveness, and has continuously invested funds and manpower in various levels of training. This also reflects the company's corporate culture of "win-win thinking", not only the enterprise should grow, but also the individual should grow. KFC combines the process of each employee's realization of his own life value with the company's long-term goal, and condenses it into an endless powerful driving force for enterprise development. From restaurant waiter, restaurant manager to company functional department manager? The company arranges a strict training plan according to the nature of the work. The education development system is yum! China has specially built a professional training system and education base in China, which is suitable for the management of local restaurants. 1996 since its establishment, the restaurant manager education and development center has provided thousands of training courses for more than 2,000 restaurant managers nationwide. The center is equipped with advanced audio-visual equipment and first-class training materials. Various training courses include quality management? Product quality evaluation? Service communication? Manage time effectively? Leadership style? Labor cost management? Team spirit, etc. From a trainee assistant? Assistant II, restaurant manager to regional manager, each promotion has different training and development courses. In the learning process, restaurant managers combine practical experience and theoretical knowledge, put forward new suggestions according to their own experience, and further revise and improve the training materials. It is understood that KFC's initial training courses have models from international standards, but the most important thing is from the words and deeds of local senior employees and the summary of work experience. In recent years, with the rapid development of KFC Pizza Hut, the company's employees are also increasing year by year. China Yum! Brands develops new training materials every year, and re-examines and compiles old materials every two years. It can be said that every employee who participates in the training of the Education Development Center is both a trainee and a trainer. Restaurant management skills training Different management positions will have different learning courses. Every restaurant manager in KFC grows up in learning and learns in growing up. When a new trainee assistant enters the restaurant, a whole set of training subjects suitable for each development stage is already waiting for him. First of all, he will learn the basic operating skills, common sense and necessary interpersonal management skills and wisdom needed to enter every workstation in KFC. With the improvement of his management ability and position, the company will arrange different training courses again. When an ordinary restaurant waiter grows into a regional manager who manages several KFC restaurants through years of hard work, he not only has to learn the management manual of leading divisions, but also receives advanced knowledge and skills training from the company, and is also sent to other countries to accept new ideas and open up new ideas. In addition, these restaurant managers have to watch videos from time to time and conduct management skills assessment competitions. China Yum! Brands has arranged considerable development space for the 5,000 young restaurant managers of its KFC Pizza Hut, so that they can build their own road to success through continuous progress. The basic training of restaurant employees is the window for the company to directly face customers, so every employee must strictly learn the basic operating skills of the workstation from the first day of entering the store. Never competent for every operation, the company arranged nearly 200 working hours of training for new employees on average. Trainee waiters, waiters, trainers, and even members of the restaurant management team have arranged corresponding senior positions according to their proficiency in workstation operation requirements, so KFC Pizza Hut provides sufficient development opportunities for every employee, regardless of age, gender and education. In addition, various restaurant competitions and employee activities will be held from time to time to bring employees closer and maintain a healthy and orderly working atmosphere inside the restaurant. Many restaurant waiters who choose KFC as their first job think that they have learned valuable experience in KFC restaurants. The habit of teamwork, diligence, honesty, conscientious and responsible, pursuing perfect quality and paying attention to details will always accompany them in the future, no matter where they work. Professional training for functional departments of China Yum! Brands has professional functional departments to manage the site selection, construction, planning, technical quality control, procurement and distribution of KFC and Pizza Hut respectively. The number of staff increased from less than 10 at the beginning to 65,438+050 in 0998. In order to cooperate with the operation and development of the whole system of the company, China Yum! Brands has special training and development strategies. Only in the first half of 1998, employees of each company received an average of five days of professional management and leadership skills training. These distinctive training subjects include: every employee will go to KFC restaurant for 7 days after joining the company to understand the connotation of restaurant operation and enterprise spirit. Once employees have accepted the corresponding management work, the company has set up how to work together to convey the company's corporate culture; Basic management, performance management and project management to help employees improve their work performance; Seven good habits and negotiation skills for developing leadership skills. On the one hand, these training courses improve the working ability of employees and cultivate suitable management talents for enterprises and countries; On the other hand, let employees know more about the company's corporate culture, so as to realize the * * * growth of the company and employees.