Sunday, June 13, 2010

What's up with KFC?


Let us count the ways: once known as Kentucky Fried Chicken, then they changed the name to only initials, then the menu went south on us.
Their bottom line has suffered as a result.
The grilled chicken, didn't help the bottom line and the Double Down sandwich, which replaces bread with chicken breasts hasn't done much either.
We tried the Double Down sandwich, it was just okay, we haven't ordered it again.



Make no mistake, KFC is the chicken king, but brands such as Chick-fil-A. now owns 20% of the market with just 1,500 locations. That's less than one-third of KFC's 5,200-store U.S. presence. And Chick-fil-A operates on a six-day week, as its restaurants are closed on Sundays.
Last year, KFC said that the grilled chicken would be the key to turn things around.
After that, KFC reported its first same-store sales growth in two years,  but results since have been negative falling 4% for the year as a whole.


Except for KFC, each of the top chicken chains grew business last year.
Chick-fil-A grew sales 9% to $3.2 billion, and gained 1.8 market-share points to 20%.
Sales were also up at Popeyes, 0.3%,
Church's, 2%,
Zaxby's, 8%,
Bojangles, 8%.

Remember El Pollo Loco?
Remember the tough advertising assault against KFC's grilled chicken?
Well, they too suffered sales declines, 7% to $582 million.

Branding consultant Denise Lee-Yohn noted that, for KFC, trumpeting grilled chicken and then promoting products like the Double Down may have muddied the brand. "They don't have a clear identity anymore, and I think that's hurt them," she said.

Those of us in the Voodoo Kitchen didn't like it when they shoved Colonel Sanders into the closet, pretending he wasn't around anymore.
The Colonel was their clear identity.