Fried chicken restaurants that run out of chicken do not make money
In February 2018, KFC ran out of chicken. The fried chicken restaurant giant switched its poultry delivery to logistics company DHL, there were — serious — teething problems, and over 600 KFCs closed across the U.K. because they had no chicken to serve. With the publication of that year’s financial results, a simple truth emerges: a fried chicken restaurant without any chicken is not a moneymaker.
KFC’s like-for-like sales to year ending 23 December 2018 fell 4.8 percent, while turnover fell from £445.8 million to £207.4 million. No, closing a few restaurants didn’t halve turnover: that’s a focus on refranchising, according to Propel. Recovery meant that sales growth for the year ended up in the black, but the message is clear: don’t risk a key supply chain without mitigation ready to go. [Propel]
And in other news...
- Jason Atherton’s new Mayfair restaurant The Betterment could... Be better.
- The city’s Michelin stars for 2020 come out later today: here’s a reminder of every Michelin-starred restaurant in London; here are the restaurants tipped for Michelin stars this year.
- Gift box and hotel biscuit shortbread specialist Walkers says rising butter prices are causing the company turbulence. [Food Manufacture]
- Bun House — which recently flipped its Soho restaurant to Wun’s — is open at Boxpark Wembley. [Propel]
- Good tweet: