The three key elements of the marketing mix for KFC are low prices, health-consciousness and environmentally-conscious production.
Given the successful marketing mix strategies and extensive promotion, it is expected that KFC will see similar growth in its franchise stores, as it has seen in its own stores in the past few years.
Opening a couple of hundred franchise stores will help KFC expand its business into areas where it is not present or increase its presence (more stores per unit population). Franchise stores will also help KFC earn more revenues and profits. The major issue with franchise stores is maintenance of the KFC brand, especially in terms of quality. KFC will also have to train the franchise employees and manage the ill-managed or unprofitable franchise stores.
With the low prices, health and environmentally conscious production, quality is the most important criteria that may ensure the continued success of existing stores and success of new franchise stores. A slew of new products, at existing low prices, may also help the stores.