Franchisor Management

In Malaysia, all KFC products are given Halal status by JAKIM and therefore the overall supply chain activity is Halal and no non- Halal/Haram elements involved. Although exported goods are Halal, the import and export activities for example handling, storage packaging/repackaging sometimes caused the Halal status to be questionable. This is because there are loopholes within the supply chain network where the KFC Halal products are mix together during storage or handling activities, with non-Halal products such as port meat or it’s byproducts and alcoholic beverages.

In Malaysia also, material handling tools for Halal and non- Halal products are separated but in overseas market, this practice is discarded. In Moreover, during storage and warehousing activities, the exported goods are stored together with non-Halal product and this will void the Halal status of the products. In Singapore, there are no regulation restricting the separation between Halal and non-Halal food products to be stored together, so long as there are meat juices from the non-Halal products, MajlisUgama Islam Singapura (MUIS) still acknowledge the products are Halal.

It has been observed that KFC in all over Malaysia follows a similar pattern of Supply chain, which enables it to reduce time involved to reach end customers and reduce expenses in supply chain. Ultimately it is able to reach and fulfil its end customers’ needs and wants at a reasonable or customer acceptable rates all over Malaysia. On the other hand KFC has yet to prescribe a minimum living wage for its members’ workers Instead KFC audits concentrate on ensuring that employers pay at least the legislated minimum wage and make the correct payments into national social security funds. The great majority of members were already compliant, in these respects and therefore, in most cases, KFC compliance does not increase costs of employing workers. In short we can say the Supply chain management of KFC has a positive impact on profit maximization by considering following:
1.      KFC (HQ) supplies ingredients to its entire outlet by its own transportation network all over Malaysia.
2.      KFC has no logistics partners they are self-sufficient and efficient to all logistic operation involved in reaching the customers. KFC follows a periodic review system to keep track on all its inventory and market demand.

 KFC HACCP Programme

We have also established a Hazard Analysis Critical Control Point (HACCP) Programme for KFC restaurants. HACCP is a management system for the assurance of food safety. The process includes identifying, evaluating and controlling hazards i.e. physical, biological and chemical to ensure food safety. It is applied from receiving of raw materials at our restaurant until serving to our customers. KFC KLCC has been audited and certified by a reputable certification body since 2005. All the established Critical Control Points (CCPs) are now included in our Daily Operations Checklist which is used by all the KFC restaurants in the country.

Sanitation / Personal Hygiene

Our daily operations manual clearly highlights each step of the sanitation procedure to ensure strict compliance to the KFC requirement. Each staff has to undergo the Food Handler’s Course conducted internally by KFC which is recognized by the Ministry of Health.

We have implemented a handwashing procedure to ensure each staff washes his/her hands at least once every hour and whenever necessary. The procedures include wetting hands first, then rubbing the hands together, fingers between fingers, around the wrist and up to the elbow with liquid antibacterial handsoap, for 30 seconds. Then the hands are rinsed with clean water under the hands-free tap, and dried with single-use paper towels.

No bare hands are allowed to touch any finished products. Instead, we constantly stress on the importance of using disposable gloves, sanitized scoops or tongs.

All our restaurant teams including managers are immunized against Typhoid upon employment.

Pest Control

Due to the encouraging conditions in the tropical climate, pest control is indeed a challenge. However, we relentlessly continue to maintain our standards and have engaged reputable pest control companies to assist us in this matter.

The trained service teams conduct regular inspections which include night treatment after operation hours and also provide follow-up checks during operation hours whenever needed, in every restaurant. There is a detailed checklist to ensure that no steps are missed. All pesticides are approved by Pesticide Board and have Material Safety Data Sheet on file for staff reference. Each pest control company will present periodic trend reports of pest activity to the management for corrective actions and remedy.

The total cost for all the services nationwide is approximately half a million ringgit annually.