KFC has taken a significant step in its expansion strategy in the United States. The chain, known for its iconic fried chicken recipes, has decided to increase its presence with the opening of new establishments in the country. This move comes in a context where competition in the fast-food sector, especially with Popeye's, is fiercer than ever.
After several years of difficulties, KFC is showing signs of recovery and has revealed its plan to open 20 new restaurants in the U.S. Despite the decrease in the number of stores in 2023 and 2024, with a loss of 123 and 127 establishments, the company is betting on a new concept. This concept, known as Saucy, has boosted KFC's sales, with results that exceed the chain's average.
KFC Bets on Saucy to Reposition Itself
The Saucy concept, launched at the end of 2024, focuses on offering chicken strips with a variety of exclusive sauces not found in traditional KFC restaurants. This approach has been a resounding success, as sales at these locations are surpassing double the average of other establishments.
KFC's CEO, David Gibbs, highlighted that the Saucy restaurant has been key to repositioning the brand. He also added that the next goal is to open 20 new establishments in strategic locations to maximize the impact of advertising campaigns and attract more customers.
The success of Saucy lies in its innovative proposal, with a menu that includes up to 11 special sauces, designed to provide a unique experience for fried chicken lovers. The popularity of this concept has been such that KFC is considering expanding it even further in the future, according to Restaurant Dive.
Additionally, the chain has also launched new product combinations, such as the collaboration with Mike’s Hot Honey, which offers a spicy and sweet variant of their traditional chicken strips. This limited offer has captured the attention of chicken fans and is designed to attract consumers in search of new flavors.
The Challenge Against the Competition
Competition in the fast-food sector is fierce, and chains like Taco Bell and Popeye's remain important rivals for KFC. Taco Bell has managed to stand out in the market, leading the 2024 price wars and showing sustained growth in its consumer base. However, KFC hasn't let this competition overshadow it, and it continues to fight to keep its relevance in such a dynamic sector.
Despite these challenges, KFC continues betting on new strategies, such as expanding its menu and using advanced technology. The chain has implemented self-service kiosks in more than 1,000 restaurants and is launching an app to facilitate internal management.