Minimum Wage

When looking for an article to review for this project I considered going with the obvious article that I remembered was the raise of the minimum wage of Walmart stores. I decided to search more and found that KFC has an enormous problem lately with their supply. I knew that since KFC was a restaurant that there would be more areas to explore than just the supply issue they encountered. KFC can be analyzed in its supply, demand, utility, and the labor market.

KFC, Kentucky Fried Chicken, ran into an extreme problem in its Britain restaurants. A Central London KFC had to distribute a "limited menu" due to a shortage in chicken. Yes, that's right, Kentucky Fried Chicken ran out of chicken! This mass shortage led to KFC having to close 450

KFC previously had its chicken supplied by Bidvest, a South African-owned distributor. KFC switched its delivery contract to DHL, which is owned by Germany's Deutsche Post. Bidvest lost 255 jobs after the loss of this contract. DHL worked to rectify the situation with another supply chain partner, QSL. DHL also apologized for the inconvenience but also wrote that they were 'not the only party responsible for the supply chain to KFC' (Freytas-Tamura and Tsang). KFC restaurants that were directly owned would pay their salary employees normally and short-term contract workers would be paid for their average hours worked every day over the past 12 weeks. This would not apply to the KFC franchise restaurants. There are many microeconomic theories that can be applied to this situation and the restaurant as a

Utility is also an inverse relationship. Utility is often seen in the consumption of any type of product, but it is especially easy to see in the food industry. The more food you consume the less utility you will receive for each unit. This idea is the same kind of concept as the law of diminishing returns. Eventually, if a person consumes too much of one product then their utility will become negative. For example, if someone were to eat 20 pieces of chicken then they might begin to feel sick and have a negative utility. The first piece of chicken consumed would bring the most utility and each piece of chicken after that would bring less utility per unit. The labor market is another microeconomic topic that can be commented on in regard to