Hi buddy, let's work it out. :)
The analytic structure,
1. How it generate so big cash flow
2. How it control its Cost of good sold (direct material, direct labor)
3. How it control its inventory (must be very successful, high turnover, low inventory, keep product fresh and WIP inventory low)
4. Operation advantageous
economies of scale and economies of scope
5. Module duplication
How to duplicate with high efficiency.
As my neighbor mentioned "standardization"
6. NO.4 and NO.5 are all about SGA expense.
The aggregated expense must be very low, so how it makes it?
Let's make a assumption:
The key to its business model is:
1. High volume of throughput
2. Low inventory
3. Low operation expense
You can google for all the data you need;
In U.S., local customers are always curious about why KFC is so successful in China?
I hope this help.
Critical intelligence for your analysis:
KFC is a subsidiary of Yum! Brands, one of the largest restaurant companies in the world. KFC had sales of $23 billion in 2013.
By December 2013, there were 18,875 KFC outlets in 118 countries and territories around the world. There are 4,563 outlets in China, 4,491 in the United States, and 9,821 across the rest of the world. Outlets are owned by franchisees or directly by the company. Eleven percent of outlets are company owned, with the rest operated by franchise holders. Although capital intensive, company ownership allows for faster expansion of the chain.
KFC's core product offering is pressure fried on-the-bone chicken pieces seasoned with the "Original Recipe". The product is typically available in either two or three piece individual servings, or in a family size cardboard bucket, typically holding between 6 and 16 chicken pieces. Poultry is divided into 9 different cuts (2 drumsticks, 2 thighs, 2 wings, 1 keel, and a backbone based breast cut divided into 2 pieces. The product is hand-breaded at individual KFC outlets with wheat flour mixed with seasoning in a two to four minute process. It is then pressure fried for a maximum of seven minutes at 185 degrees celsius. Following this, the chicken is left to stand for 5 minutes in order for it to sufficiently cool before it is placed in the warming oven.