MALAYSIANS have a huge appetite for chicken, leading the region in terms of per capita consumption.
According to data compiled by the United Nations’ Food and Agriculture Organisation (FAO) in 2020, Malaysians consume approximately 50.5 kg of chicken per person each year, ahead of Singaporeans, who have a per capita consumption rate of 36 kg, and Myanmar at 29.9 kg, both ranked second and third in Asean.
This escalating demand for chicken has spurred the growth of the fried chicken industry.
In fact, the 2020-2025 Global Fried Chicken Market Report anticipates a strong compound annual growth rate (CAGR) for the sector with the market valued at US$7.04bil in 2023 and is expected to soar to US$10.52bil by 2030, translating to a CAGR of 7.2% from 2024 to 2030.
At the centre of this trend is KFC, whose hand-prepared meals, seasoned with 11 secret herbs and spices, create craveable moments for the Malaysian palate. The brand has become synonymous with fried chicken in Malaysia, fuelling demand for the nation’s favourite recipe.
And leading this industry is QSR Brands (M) Holdings Bhd, the franchisee of KFC and Pizza Hut in Malaysia and Singapore, and KFC in Brunei and Cambodia.
Recognising the opportunities presented by the love for fried chicken, QSR Brands, Malaysia’s leading quick-service restaurant operator by the number of outlets, has embarked on a significant transformation journey since 2022.
The aim of this initiative is to reshape the organisational culture of QSR Brands, enabling it to better respond to evolving consumer preferences and to expand its market footprint. As part of the initiative, QSR Brands introduced a “Flywheel” model in 2022, centred around four core values – putting customers first, growing people as builders, being bold to innovate, and never giving up.
As CEO and managing director Nehchal Khanna explains, “QSR Brands’ culture transformation was imperative to scale and enhance its agility in tackling prevailing market challenges, such as hyperinflation, supply chain disruptions, rising interest rates and evolving consumer demands.”
In alignment with the famous quote by the Father of Management, Peter Drucker, “It is the customer who determines what a business is, what it produces, and whether it will prosper,” QSR Brands prioritises customer satisfaction as the foundation of its business model.
A vital part of this strategy is fostering a culture of empowerment within the organisation.
First up was the unveiling of a formidable new line-up of visionary board members and transformative senior leadership. The cultural transformation was able to draw great talent that deliver tangible value to customers and prioritised in-house idea generation, problem-solving, and results-driven execution.
Employee empowerment remains a core principle at QSR Brands, underscoring the belief that the company’s future success hinges on cultivating a culture of transformation across the organisation.
The company’s talent development initiative, known as GROW, aims to equip high-potential individuals with the knowledge and skills necessary to elevate QSR Brands while nurturing their leadership potential.
Nehchal emphasises that leaders within the organisation are given the authority to make decisions autonomously, stating, “They (the leadership team) are entirely empowered to make decisions. They have a great deal of autonomy and are able to pass that down through the ranks.”
QSR Brands also put into motion its Transaction Velocity Framework in 2022, reflecting a fresh approach to business. The focus is on increasing transaction volume by authentically connecting with consumers.
Additionally, the company invests in the future, through initiatives such as the KFC Scholarship Fund and the Sehati feed-to-educate campaign, designed to uplift and empower the community.
The Covid-19 pandemic irrevocably altered traditional distribution channels, prompting QSR Brands to adapt swiftly.
The Transaction Velocity Framework supports a diverse consumer group by engaging in events like the KEPCI Music Festival, capitalising on trends involving popular entertainment figures such as Genshin and Dolla, and innovating its menu offeringsFurther, QSR Brands has expanded its local menu and dessert options to cater to regional tastes, ensuring a deeper connection with customers.
Digital transformation has also been a significant focus, with QSR Brands investing heavily in e-commerce and technology.
From 2019 to 2023, revenue from online channels for KFC Malaysia grew at a CAGR of 42%, while Pizza Hut Malaysia saw a 22% increase. Innovations such as self-service kiosks, QR code ordering, and an enhanced drive-thru experience contribute to improved convenience and customer satisfaction.
As Nehchal notes, “At QSR Brands, digital and data are in our DNA, and we are leveraging this to create a brand experience that is distinctive and relevant to modern consumers – we are making it easier to access our brands in our stores or anywhere else.”
To deepen its understanding of customer behaviour, QSR Brands is harnessing the power of artificial intelligence and data science.
This investment allows the company to support better business decisions and tailor marketing efforts effectively.
The introduction of Earn Wage Access in December 2021 illustrates the integration of data and finance, which helps align business operations with consumer needs.
Despite numerous challenges, including those posed by the pandemic, QSR Brands has weathered the storm.
Since opening its first KFC outlet in 1973, the franchise has become one of the most popular fast-food chains among Malaysians.
With over 1,400 KFC and Pizza Hut restaurants across Malaysia, Singapore, Brunei, and Cambodia, employing more than 20,000 people, QSR Brands remains resilient in its pursuit of success.
Nehchal is optimistic about the future, asserting that QSR Brands will emerge stronger, aspiring to improve its global ranking among restaurant operators and striving to become the foremost food-technology company in Asean.
“QSR Brands takes sustainable (ESG) matters seriously and recognises that we play an important role in food sustainability. Thus, we believe in having strong governance in place as it will be the key pillar that supports the group’s growth while ensuring our responsibility in supplying sustenance,” he states.
Ultimately, the core mission of QSR Brands is to delight, serve and uplift Malaysians through its beloved food offerings.
With a commitment to innovation, quality and sustainability, QSR Brands is poised to remain a staple in the Malaysian quick service restaurant landscape, ensuring that the fried chicken many Malaysians grew up with continues to be a cherished monthly or even weekly craving.
