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KFC History: How Colonel Sanders Founded the Chain in 1952 - FourWeekMBA
Gennaro Cuofano · 2026-06-01 · via FourWeekMBA

Kentucky Fried Chicken (KFC) is an American fast-food restaurant chain founded in 1930 by Colonel Harland Sanders, an entrepreneur who started selling fried chicken from a roadside restaurant in Corbin, Kentucky. From a single restaurant, there are now over 25,000 around the world across 145 territories and countries. The fast-food chain is now the fourth largest in operation after Starbucks, McDonald’s, and Subway. 

KFC history refers to the development of Kentucky Fried Chicken from Colonel Harland Sanders' original restaurant in 1930 to becoming a global fast-food chain. Sanders developed his secret recipe of 11 herbs and spices in the 1940s and franchised the brand starting in 1952, leading to worldwide expansion.

History of KFC
Source: KFC

Birth and early years

Sanders was born in 1890 on a farm in Henryville, Indiana. When he was five years old, he lost his father which forced his mother to become the breadwinner and secure employment at a cannery. 

Without the presence of either parent, Sanders was often tasked with cooking for his two younger siblings.

His mother showed him various recipes, including those for pan-fried chicken, country ham, and homemade biscuits. 

Fried chicken in a gas station

Sanders dropped out of school at age 12 after becoming horrified at the thought of having to learn algebra.

He then worked on a farm for a few years and subsequently held several titles, including fireman, insurance salesman, and streetcar conductor.

At some point in the early 1930s, Sanders took over the management of a gas station at the foot of the Appalachian Mountains.

Travelers stopping for gas would remark that there were no decent restaurants in the area, so Sanders began cooking his childhood recipes in the station’s cramped storage room.

Sanders served diners in a small area with a single table and six chairs. This, one could argue, constituted the first KFC restaurant.

Buoyed by his success, Sanders then opened the Harland Sanders Court and Café, a motel and restaurant capable of seating 142 diners.

Secret herbs and spices

To cater to the increased demand for his chicken, Sanders then managed to perfect a pressure cooking technique to speed up the cooking process without sacrificing quality.

In the early 1940s, he also developed his blend of 11 herbs and spices that remain a secret to this day. 

Franchising

franchising
Franchising is a business model where the owner (franchisor) of a product, service, or method utilizes the distribution services of an affiliated dealer (franchisee). Usually, the franchisee pays a royalty to the franchisor to be using the brand, process, and product. And the franchisor instead supports the franchisee in starting up the activity and providing a set of services as part of the franchising agreement. Franchising models can be heavy-franchised, heavy-chained, or hybrid (franchained).

Sanders experienced a reduction in business soon after thanks to the advent of the Second World War.

Gas rationing and the construction of a highway that would bypass his restaurant also reduced tourist numbers.

To protect the viability of his business, Sanders decided to travel around America pitching his fried chicken concept to other restaurant owners.

After famously being rejected 1,009 times, the first KFC franchise opened in Salt Lake City, Utah, in 1952. 

The now instantly recognizable KFC chicken bucket, with its distinctive red and white stripes, was developed five years later by Dave Thomas.

Thomas was instrumental in the early years of the company, streamlining its menu and encouraging Sanders to appear in advertising commercials and become the face of the brand.

Thomas eventually founded Wendy’s in 1969 after selling his KFC franchises back to Sanders. 

Sanders sells KFC

In 1964 at the age of 75 and with over 600 franchises distributing his fried chicken, Sanders sold KFC to a group of investors in a deal worth $2 million

However, as part of the deal, he maintained control of Canadian operations and was paid as a KFC brand ambassador for life.

Name changes

In 1990, Kentucky Fried Chicken was forced to change its name after the Commonwealth of Kentucky trademarked “Kentucky”.

The company became KFC, an acronym many consumers were using already.

The modern face of KFC

Today, KFC is owned by Yum! Brands, an American fast-food corporation that also owns Pizza Hut and Taco Bell.

The company had to stop using its “Finger lickin’ good” catchphrase in 2020 to encourage safer hygiene practices during the COVID-19 pandemic.

Modern KFC restaurants offer much more health-conscious menu items that are packaged in more sustainable materials.

The company is also well known for using technology to grow the business, including the use of voice-activated devices and virtual reality-based staff training. 

What’s more, trials of so-called “smart restaurants” in China have started where facial-recognition technology is utilized to remember a customer’s favorite foods and offer them personalized suggestions.

Key takeaways:

  • Kentucky Fried Chicken (KFC) is an American fast-food restaurant chain founded in 1930 by Colonel Harland Sanders, an entrepreneur who started selling fried chicken from a roadside restaurant in Corbin, Kentucky.
  • Sanders held many different jobs but ultimately returned to cooking his childhood food for others in a gas station he managed in the 1930s. War, inflated gas prices, and an interstate bypass then reduced tourist numbers, forcing Sanders to pitch his franchise idea to restaurant owners around the United States.
  • The first franchise opened in 1952 in Utah, with the number of franchises growing to 600 by the time Sanders sold the company twelve years later. Kentucky Fried Chicken became KFC in 1990 after the Commonwealth of Kentucky trademarked the name.

How AI Is Changing This

AI is revolutionizing KFC’s operations through automated kitchen technology that would have seemed impossible when Colonel Sanders first started frying chicken in the 1930s. A concrete example is KFC’s implementation of AI-powered pressure fryers in select locations that can automatically adjust cooking times and temperatures based on real-time data about chicken piece sizes, ambient kitchen temperature, and oil quality. This system ensures the Colonel’s original recipe maintains consistent taste and texture across thousands of global locations, something that required years of training for human cooks. The AI monitors oil degradation and alerts staff when to change it, reducing waste and maintaining quality standards. This technological leap represents a dramatic shift from the brand’s humble beginnings as a roadside restaurant in Kentucky, where Colonel Sanders personally supervised every batch, to a global empire where artificial intelligence helps preserve his culinary legacy while scaling operations worldwide.

For deeper analysis: The Business Engineer — AI Strategy Intelligence

Related Visual Stories

Who Owns McDonald’s

who-owns-mcdonalds
The major institutional shareholders comprise The Vanguard Group (8.83%) and BlackRock (7.1%). Major individual shareholders include Kevin Ozan (Executive Vice President and Chief Financial Officer), Stephen Easterbrook (President and CEO), and John Rogers, Jr., an investor, philanthropist, and Ariel Capital Management founder. And a few other individual shareholders.

McDonald’s Business Model

mcdonalds-business-model
McDonald’s is a heavy-franchised business model. In 2022, over 60% of the total revenues came from franchised restaurants. The company’s long-term goal is to transition toward 95% of franchised restaurants (by 2022, franchised restaurants were 94.7% of the total). The company generated over $23 billion in revenues in 2022, of which $8.75 billion was from owned restaurants and $14.1 billion from franchised restaurants.

McDonald’s Revenue

mcdonalds-revenue-breakdown
Of over $23 billion in revenue in 2022, $8.74 came from company-operated stores, while $14.1 billion came from franchised restaurants. Of over $23 billion in revenue in 2021, McDonald’s generated almost ten billion dollars from company-operated restaurants, while it generated $13 billion from franchised restaurants.

McDonald’s EV/Revenue Multiple

mcdonalds-ev-revenue-multiple
In 2022, McDonald’s EV/Revenue Multiples was 8.33 in 2022, compared to 8.53 in 2021.

McDonald’s Profits

mcdonalds-profits
In 2022, McDonald’s generated $6.18 billion in net profits, compared to $7.54 billion in 2021. The company runs a heavily franchised business model, where it has reached its target of 95% franchised restaurants worldwide.

McDonald’s Strategy

mcdonalds-strategy
McDonald’s finally transitioned to a heavily franchised business model in 2022, reaching its long-term objective of 95% of franchised restaurants vs. its total restaurants worldwide. Approximately 95% of the restaurants at year-end 2022 were franchised, including 95% in the U.S., 89% in International Operated Markets, and 98% in the International Developmental Licensed Markets.

McDonald’s Employees

mcdonalds-employees
McDonald’s had 150,000 employees in 2022, compared to 200,000 employees in 2021 and the same in 2020. The company runs a heavily franchised business model, where most stores are franchised restaurants vs. owned ones. In 2022, McDonald’s franchised locations employed over two million individuals.

McDonald’s Margins

mcdonalds-owned-vs-franchised-margins
McDonald’s runs a heavily franchised business model, where most of its margins come from franchised restaurants vs. operated ones. For instance, in 2022, franchised restaurants generated $11.75 billion in margins vs. its operated restaurants, which generated $1.37 billion in margins.

Who Owns Burger King

who-owns-burger-kint
Burger King is an American multinational chain of fast-food restaurants that is headquartered in Miami, Florida. The first Burger King restaurant, then known as Insta-Burger King, was opened in Jacksonville, Florida, in 1953 by Keith Cramer and his stepfather Matthew Burns. Burger King Worldwide merged with the Canadian coffee chain Tim Hortons in 2014. This precipitated the formation of parent company Restaurant Brands International, which is part-owned by former Burger King owner 3G Capital.

McDonald’s Organizational Structure — as explored in the new organizational architecture for the AI era

Frequently Asked Questions

Q. Q: What is the background history of Colonel Sanders and KFC?

Colonel Harland Sanders opened his first restaurant in 1930 in Kentucky. He perfected his fried chicken recipe using 11 secret herbs and spices, then began franchising in 1952 before selling the company in 1964.

Q. How did KFC evolve from a single restaurant to a global chain?

KFC evolved through Sanders' franchising model starting in 1952, rapid expansion in the 1960s after being sold to investors, and international growth beginning in the 1970s, reaching over 140 countries today.

Q. Why did the KFC logo change throughout the company's history?

The KFC logo evolved to modernize the brand while maintaining Colonel Sanders' iconic image. Changes included updating his appearance, simplifying designs for digital use, and refreshing colors to appeal to contemporary consumers.

mcdonald-organizational-structure
McDonald’s has a divisional organizational structure where each division – based on geographical location – is assigned operational responsibilities and strategic objectives. The main geographical divisions are the US, internationally operated markets, and international developmental licensed markets. And on the other hand, the hierarchical leadership structure is organized around regional and functional divisions.

McDonald’s PESTEL Analysis

mcdonalds-pestel-analysis

McDonald’s SWOT Analysis

mcdonalds-swot-analysis

Franchising Business Model

franchising
Franchising is a business model where the owner (franchisor) of a product, service, or method utilizes the distribution services of an affiliated dealer (franchisee). Usually, the franchisee pays a royalty to the franchisor to be using the brand, process, and product. And the franchisor instead supports the franchisee in starting up the activity and providing a set of services as part of the franchising agreement. Franchising models can be heavy-franchised, heavy-chained, or hybrid (franchained).

Coca-Cola Business Model

coca-cola-business-strategy
Coca-Cola follows a business strategy (implemented since 2006) where through its operating arm – the Bottling Investment Group – it invests initially in bottling partners operations. As they take off, Coca-Cola divests its equity stakes, and it establishes a franchising model, as long-term growth and distribution strategy.

Coca-Cola Mission Statement

coca-cola-vision-statement-mission-statement
Coca-Cola’s Purpose is to “refresh the world. make a difference.” Its vision and mission are to “craft the brands and choice of drinks that people love, to refresh them in body & spirit. And done in ways that create a more sustainable business and better-shared future that makes a difference in people’s lives, communities, and our planet.”

Read Also: McDonald’s Business Model, Coca-Cola Business Model, Coca-Cola Distribution Strategy.

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