KFC’s recipe for a comeback
KFC is shaking things up in response to changing consumer preferences, moving beyond their iconic fried chicken buckets. The global fast-food chain, owned by Yum Brands, is focusing on new menu items like their own version of the chicken sandwich, spicy wings, and potato wedges to attract new customers and stay ahead of the competition.
JPMorgan analysts have noted that KFC’s US division, under the leadership of President Catherine Tan-Gillespie, is implementing new marketing strategies and menu innovations to drive sales growth. For example, the introduction of spicy wings and potato wedges has led to a 2% increase in US sales in the third quarter of fiscal year 2025.
One of KFC’s successful ventures is the new restaurant concept called Saucy, which specializes in fried chicken tenders and sandwiches with a variety of signature sauces. The first Saucy location in Orlando has been performing exceptionally well, with sales double that of a typical KFC store.
To further capitalize on their success, KFC is launching a pop-up restaurant called “Sundays” in New York City on Nov. 9, offering larger versions of their classic chicken sandwich. They are also embarking on a “Size Matters Tour” to promote their new sandwich size with free samples in multiple cities across the country.
In a competitive fast-food landscape, brands like KFC are facing challenges in attracting customers amidst rising menu prices. KFC’s focus on innovation and relevance seems to be paying off, with positive results in both the US and international markets.
Analyst Alex Fasciano from CFRA Research expects to see more new product launches in the US chicken market as consumer demand grows and restaurants look for cost-effective alternatives to beef.
Overall, KFC’s strategy revolves around brand relevance, marketing innovation, operational excellence, franchise partnerships, technology, and scale to drive growth in both domestic and international markets.
