Think the economy is improving in Louisville?
Well, not so much in some corporate worlds.
Seems today is “Black Friday” for many on this Thursday at KFC.
Looks like Team Novak is cleaning house according to sources, as many as 60 KFC corporate and team members are getting the pink slip today.
To explain why- perhaps its because as they have sold off many of the corporately owned KFC branches. Gone are the teams that ran those areas, coaches and training on the local franchise levels. These are among the many who have lost their positions.
In July of 2010, Yum Brands Chairman and CEO David Novak hinted at the closings by saying “I’d rather have 4,500 great-looking KFCs than 5,000 with 500 looking at being drive-by assets,”
In the same industry analysis, the numbers told a tale:
“ KFC’s second-quarter revenue at U.S. restaurants open at least a year fell 7 percent. The chain had 5,040 restaurants at the end of the quarter – 4,187 owned by franchisees and 853 by the company.”
To further explain, Novak hangs his hat on the success overseas, and not the US market, thereby justifying the sell off of the company owned restaurants.
According to the same Huffington Post article from 2010: http://www.huffingtonpost.com/2010/07/15/kfc-execs-hint-some-resta_n_647175.html
“It’s been a tale of two continents: In China, the chain is highly profitable and has become a dominant fast-food brand. Yum’s operating profit in the world’s most populous country rose 33 percent for the second quarter, driven mostly by KFC sales as it opened 59 new restaurants in China.”
Most of the folks I have heard from are getting both the papers and are at least, a severance package, full retirement and full medical coverage, depending on how long their service has been with KFC.
That said, it is not a safe place to be if indeed you are one of the 50+ year old executives who are looking at a whole new world of “job hunting”.
Best of luck to all involved, it is not a safe place to be.