KFC Holdings Sdn. Bhd.

Technology has become part and parcel in the operation of fast food restaurants
throughout the world, be it in speeding up the delivery of service to the customers, to
satisfy the customer’s needs or to organize the work in the restaurant. With the rapid
development and advancement of technology, new features and gadgets are being
introduced into the fast food industry.

The most used technology when it comes to fast food restaurants are the POS (Point-
of-Sale) systems. These are information systems that are used for daily operation
activities within the restaurant. All fast food restaurants have this system to key in the
customer’s order and get the payment from the customer. “Modern point of sale
systems can operate on computer networks using a variety of software programs. Sales
records can be generated and remote access to computer reports can be given to
corporate offices, managers, troubleshooters, and other authorized personnel”
(Wikipedia, 2011). In most KFC restaurants in Malaysia, a touch screen POS terminal is
used for these operations. McDonalds and Pizza Hut also use the above mentioned
system.

Another technology used by this sector is the Drive-Thru system. This is a system
used for customers who want to buy on the go. The customer drives up to a speaker
panel that has a monitor. The customer makes his order with the person in-charge and
sees his order in the monitor. He then drives to the payment window to pay for his order
and finally takes his order at the order delivery window. “Wireless systems allow orders
placed at drive through speakers to be taken by cashiers and cooks. Drive through and
walk through configurations will allow orders to be taken at one register and paid at
another” (Wikipedia, 2011). These drive-thru systems are being used is some of the fast
food outlets in Malaysia, such as KFC and McDonalds.
Self-service kiosks have also been introduced into this fast food sector although it is
not that popular in Malaysia. These kiosks allow the user to make their own orders
using a simple touch screen system with easy instructions. “Benseron Information
Technologies Inc. has started placing automated ordering systems in many Subway
franchises around Southwest Florida. The small kiosks can be set up by the counter,
and they feature a touch-screen system that gives customers the opportunity to design
their own sandwiches before they get in line” (Benseron, 2009). Currently in Malaysia,
only Pizza Hut is known to be using such a system.

There are also some fast food restaurants that use online ordering systems to allow
the customers to make their orders online and their order delivered to their doorstep.
Customers choose their order from a catalogue available online, then can either pay
through credit card or on delivery. Pizza Hut has such a system but KFC does not.

All these separate information systems are also connected to each other using a
management information system. This system allows fast transfer of information and
synchronization of all data. This allows the managers to get up-to-date information at
their fingertips.

Leaving the management aside, technology is also used in getting more customers into
their restaurants. One of the most famous ways of using technology in getting
customers is to offer free wifi. “The fast food chain McDonald's is to introduce free high
speed wireless internet access at most of its 1,200 restaurants by the end of the year in
a move which will make it the UK's biggest provider of such a service. Customers will
be able to go online via their laptops, compatible mobile phones and games consoles
for hours on end if they wish. The initiative goes a step further than existing services
offered by some coffee shops and cafes, which provide Wi-Fi hotspots but charge users
a fee.” (Rebecca, 2007)
Some restaurants have even started providing kiosks that are tech-savvy feature-filled
for the use of customers. “Burning CDs, downloading mobile-phone ringtones, even
printing digital-quality photos could soon be the newest things on the McDonald's menu.
In a bid to draw the young and tech-savvy into its restaurants, McDonald's has begun
pilot testing a new ATM-style device called the Blaze Net, which allows customers to
buy music, ringtones, print photos and surf the Web at the restaurant. Open since last
Monday, the new flagship restaurant near Oakbrook Center Mall in suburban Chicago
combines several high-tech gadgets yet to be seen in more conventional McDonald's
eateries. The gadgets appear alongside such food offerings, including a latte in the
McCafe section of the store that is more reminiscent of a Starbucks than a burger joint.”
(Delroy, 2005)

All these technologies enhance the service and the hospitality offered by the fast food
restaurant. As they adapt and accept these technologies, they speed up the process of
serving the customers, thus reducing wait time for the customers. KFC in Malaysia has
yet to implement some of the above mentioned technologies such as the self-service
kiosks and online ordering system. If these are implemented, it will attract more
customers and increase revenue. They will also be on par with the development of
technology and give them a competitive edge over other restaurants. Currently, Pizza
Hut has implemented all the above mentioned information systems, allowing them to
attract more customers and pleasing their needs.

KFC should also come up with new innovations and new ways to enhance their
services. More innovative technologies such as connecting all POS system to be
accessed by the manager and higher-ups should be implemented.

There are several issues involved when the fast food restaurants such as KFC,
McDonalds and Pizza Hut compete in the global market. Depending on the
geographical regions, there will be differences in what the customer wants.
Customer tastes and preferences
People in general have different tastes from one another. Some of the influences are
different religions, cultures and environment. A product that is famous in one country
might not do so well in another. For example, Malaysians, who consist of multicultural
background are fine with the fact that most of the products in KFC do not have rice
together with the servings. This is acceptable here because of the mixing of cultures. At
the same time, such products do not do so well in India because of Indians generally
preferring to eat rice together with fried chicken. They do not really like eating chicken
only.

Customer buying habits

The basics of fast foods, as implied by the name, are convenience (such as nobody has
to cook or clean up) and speedy service. These are what the customers want and
expect from a fast food restaurant. Due to the short time lag between ordering and
delivery of the food, fast foods go a long way towards fulfilling the needs of people who
want a hurried meal or who may be compelled to eat while driving. Besides, the
American fast food concept provides consumers with a convenient alternative to a
home-cooked meal. (Lee, 2000)
Market size and growth potential
The market size and growth potential is also a factor when going global. The fast food
restaurants need to consider whether there is potential for the company to grow in a
certain country and if the market size is big enough to earn profits. For example, Brunei
is a small country, there for the market size for fast food is small compared to India, one
of the largest populations in the world. The market size would definitely be bigger. At the
same time, Brunei is a rich country, so the people of Brunei can afford to eat fast food
that is usually more expensive, compared to India where most of its population is in the
low income background.

From the ethical and social issues using information system and information technology,
there is not much to say. Ethically, the information system supports and helps the
restaurant owners in selling their products faster and more efficiently. In doing so,
socially, the customers are happier with the service, thus making them come back for
more.
Reference

Benseron (2009). New technology makes fast food faster; FGCU graduates hired. 2009.
Benseron POS Software and Hardware [online]. [Accessed 10 April 2011]. Available
from: <http://www.benseron.com/Blog/tabid/75/EntryId/1/New-technology-makes-fast-
food-faster-FGCU-graduates-hired.aspx>.

Delroy Alexander McDonald's beefs up menu for tech-savvy. (2005). The Seattle Times,
30 May 2005, p.8.

Lee Kum Chee (2000). THE FAST FOOD MARKET: A STUDY OF BUYING
BEHAVIOUR AND RESTAURANT IMAGE [online]. [Accessed 10 April 2011]. Available
from: <http://mgv.mim.edu.my/MMR/9108/910808.Htm>.

Rebecca Smithers McDonald's to offer free Wi-Fi in restaurants. (2007). guardian.co.uk,

Wikipedia - Fast food restaurants [online]. (2011) [Accessed 10 April 2011]. Available