Kfc Franchise Owners Flock To Convention

(Thursday, February 23, 2006) - Coming off a year of solid sales growth at KFC, franchise owners from around the world began gathering Wednesday in Kissimmee for their annual convention.

More than 13,000 KFC franchisees and company officers are expected to attend the event at the Gaylord Palms Resort & Convention Center. Sponsored by the Association of Kentucky Fried Chicken Franchisees, the convention, which is closed to the public, will last through Saturday.

Attendees will get an update on the state of KFC's business and hear about new marketing and product plans.

The event will also feature workshops addressing topics ranging from store remodeling to tips on how to reduce supply costs.

"It's really the one time of year where all the franchisees come together," KFC spokeswoman Laurie Schalow said.

KFC, the country's largest fast-food chicken chain, has about 40 company-owned and franchise restaurants in the Orlando area.

Owned by Louisville, Ky.-based Yum! Brands Inc., KFC has revitalized a once-struggling domestic operation that was facing stiff competition from burger and pizza chains promoting chicken items.

The fried-chicken chain has posted more than 12 consecutive months of same-restaurant sales increases, a key industry gauge of performance. In January, KFC estimated an 8 percent gain in same-restaurant sales.

Analysts credit KFC's resurgence to the introduction of low-priced items such as the 99-cent Snacker sandwich and keen marketing of the popular $10 variety bucket.

"KFC appears to be well entrenched in its turnaround," Andrew Barish, an analyst with Bank of America, said earlier this month in a research note.

Fearing increased competition from higher-end fast-casual chains such as Maitland-based Tijuana Flats and Panera Bread, KFC is also testing a new upscale prototype store in Louisville that has brought back the "Kentucky Fried Chicken" name. The store's features include ottoman-style seating, bucket-shaped lights and a red-painted glass wall.

Still, KFC faces a number of challenges. In China, where the company has bold expansion plans, the chain must contend with escalating concerns about an avian flu pandemic.

At home, animal-rights activists including People for the Ethical Treatment of Animals have called for the chain to improve the way its suppliers raise and slaughter its chickens.

On Wednesday morning, a few protesters from a group called the Animal Rights Foundation of Florida held signs at the Gaylord's entrance calling for a boycott of the restaurant chain.

"All we're asking for is for KFC to be a little kinder to the animals that are being raised for profit," said Bryan Wilson, a coordinator for the Florida organization.

The group accuses KFC's suppliers of inhumane practices such as killing birds before they are unconscious and debeaking chickens.

KFC responded to the claims by releasing a statement:

"KFC is committed to the well-being and humane treatment of chickens. . . . While we don't own any poultry facilities, we require all of our suppliers to follow welfare guidelines developed by us with leading experts on our Animal Welfare Advisory Council."

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