KFC is staging a ‘Kentucky Fried comeback' with Colonel Sanders as rivals like Chick-fil-A eat its lunch

Fast Company

7 days ago

BY
KFC is calling Colonel Sanders back into service as the ailing restaurant brand navigates what it calls a 'Kentucky Fried comeback.'
On Monday, the fast-food restaurant chain kicked off a national television ad campaign featuring the return of Colonel Sanders that highlights the brand's origin story in an attempt to lure back diners who have gravitated to the sector's largest players, Chick-fil-A and Restaurant Brands' Popeyes, and smaller upstarts like Dave's Hot Chicken.
While those chains have reported steady sales growth, restaurant operator Yum Brands has reported KFC's U.S. sales have declined for five consecutive quarters.
'We kind of lost a bit of ground,' says Catherine Tan-Gillespie, president of KFC's U.S. business, during an interview with Fast Company. 'This is about us getting back in the fight.'
KFC's positioning has gotten so wobbly that it was recently ousted from the top three largest chicken chains in the U.S. by sales by Raising Cane's.
Smaller chains like Slim Chickens and Dave's Hot Chicken have been accelerating their new restaurant openings and have had more success with narrowly focused menus. Growth for Dave's Hot Chicken became so appetizing that it recently secured a majority investment from private equity firm Roark Capital at a $1 billion valuation, even though the chain had just over 300 locations.
'Chicken is the world's protein and it's the only protein that can be eaten globally,' says Fred LeFranc, founder and CEO at restaurant consulting firm Results Thru Strategy. 'But, it's very, very competitive.'
Bones of contention
As the legacy incumbent brand, KFC has struggled with a menu that tends to favor bone-in chicken, while much of the growth has been for boneless chicken in the forms of tenders, nuggets, and sandwiches.
The quality of service at KFC isn't as well regarded as it is rivals like Chick-fil-A, which puts a huge emphasis on friendliness from the staff, and the operating standards for stores has also been low.
'They let their stores get old and didn't refurbish them,' adds LeFranc.
Tan-Gillespie concedes that legacy brands like KFC 'sometimes do lose ground if they lose touch with where customers are evolving or where competitors are intensifying.'
A 10-year veteran at KFC, including leadership roles in Canada and the South Pacific markets and serving as a chief marketing officer for the U.S. business, Tan-Gillespie was promoted to the role of president in April to steer a turnaround.
For Yum Brands, it is key to get the chicken restaurant chain back on track to align more with the healthier sales results that have been reported by the operator's other two big brands, Taco Bell and Pizza Hut.
Her comeback plan for KFC includes retraining staff and a longer-term investment to renovate stores. KFC intends to use some corporate locations to experiment and evaluate what the restaurant concept of the future will look like.
KFC is also giving a lot more attention to the food it serves, adding original recipe chicken tenders and a chicken-and-waffles combo to the menu. This week, KFC will add fried dill pickle slices, a trendy menu item that's also recently been featured at Popeyes and Shake Shack.
The chain is also promoting a 'free bucket on us' digital offer, available on KFC.com and the company's mobile app, which will give diners a free bucket of fried chicken for orders over $15.
Famous mascot gets a fresh start
As for the return of Colonel Sanders, in the past, KFC relied on a long-running gimmick of hiring big named celebrities to play the character, including Saturday Night Live alums Darrell Hammond and Norm Macdonald, actor Rob Lowe, and country singer Reba McEntire.
Those advertisements were successful in breaking through culturally, but Tan-Gillespie says the latest campaign has a different goal of focusing more on the food and less on a casting gimmick.
'We didn't necessarily want a celebrity to detract from that story,' says Tan-Gillespie.
The newest ad does feature a celebrity component, with Canadian chef and The Bear actor Matty Matheson interacting with the Colonel in a few brief moments.
KFC's campaign will also run on social media channels including TikTok and Instagram, as well as out-of-home advertising.
It was developed by KFC's team with support from external partners including the creative agency Highdive, whose work in food includes campaigns for Mentos candy, Lay's potato chips, and the sandwich restaurant chain Jersey Mike's Subs.
Tan-Gillespie says all of the elements of the campaign reflect a dual approach that she calls 'sales overnight and brand over time.'
What that means is she hopes KFC can emotionally connect with diners with the return of a beloved brand mascot, while also driving more immediate sales with promotions and new menu items.
'The return of the Colonel, in many ways, equals the return of KFC,' says Tan-Gillespie.
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