Emily Carter
In February 2018, KFC ran out of chicken in the UK, causing a chicken crisis that led to the closure of hundreds of its restaurants. The issue was caused by a switch in logistics providers from Bidvest Logistics to DHL, which operated out of a single warehouse and experienced various issues, including delivery trucks getting stuck in traffic and problems with temperature regulation. KFC's response to the crisis, which included a creative public relations strategy and rehiring Bidvest Logistics, is considered a successful example of crisis management and brand resilience.
| Characteristics | Values |
|---|---|
| Date | February 2018 |
| Reason | KFC changed from a chilled/frozen food logistics company to DHL, which failed to deliver ingredients to KFC's restaurants |
| Number of KFC outlets in the UK | 900 |
| Number of outlets closed due to chicken shortage | 750 |
| Number of outlets still open | 266 |
| KFC's response | KFC took out a full-page ad in newspapers, apologised on social media, and rehired Bidvest Logistics to handle deliveries |
Explore related products
What You'll Learn
KFC's public relations strategy
In 2018, KFC ran out of chicken in the UK, causing a crisis for the fast-food chain. KFC's response to this crisis has been hailed as a "genius marketing move" and a "masterclass in crisis management".
Firstly, KFC took a humble approach by acknowledging the issue and apologising to its customers. They posted signs on closed stores, explaining the situation and expressing regret for any inconvenience caused. They also took out full-page ads in newspapers, featuring an empty bucket of chicken with the letters rearranged to spell "FCK". This light-hearted apology helped to diffuse tension and show self-awareness.
Secondly, KFC injected humour into their communications to lighten the mood and connect with their customers. Their media partner, Blue 449, guided them in this approach. KFC's Twitter account, for instance, made chicken-related jokes, such as: "Some chickens have now crossed the road, the rest are waiting at the pelican crossing." This playful tone helped to turn a negative situation into an opportunity for engagement.
Finally, KFC maintained honesty throughout their communications. They provided clear and honest explanations of the issue and their solutions. For example, they explained that they had brought on a new delivery partner, who was experiencing teething problems getting fresh chicken to all their restaurants. They also kept customers informed about their progress, thanking them for their patience and support.
Air Fryer Chicken: Minutes Per Pound Perfection
You may want to see also
Explore related products
KFC's business recovery
KFC's initial response to the crisis was focused on communication and transparency. They posted signs on closed stores apologizing for the inconvenience and providing explanations for the situation. They also released statements on social media, employing humor and wit to engage with their customers. Additionally, they took out full-page ads in newspapers, apologizing for the issue in a creative way by rearranging the letters in their logo to spell "FCK".
The fast-food chain also addressed the concerns of their staff. They announced that salaried employees would be paid as normal, while staff on short-term contracts would be paid based on their average work hours over the previous 12 weeks for company-owned restaurants. However, franchisees, which covered around 80% of their outlets, were only encouraged to follow this policy and could seek independent advice.
To address the supply chain issues, KFC rehired Bidvest Logistics to handle deliveries for approximately one-third of its outlets, particularly in Northern England. This move helped stabilize their supply chain and ensure the delivery of fresh chicken to their restaurants.
KFC's business bounced back strongly after the crisis. According to YouGov data, their brand perception recovered by May 2018, returning to pre-crisis levels. Their net positive sentiment improved significantly, and their UK market share increased to 8.1% in 2019, up from 7.3% in 2017. KFC's effective crisis management, transparency, and quick resolution of the issue contributed to their successful business recovery.
Treating Dog Diarrhea: Chicken and Rice Recipe
You may want to see also
Explore related products
KFC's switch in logistics provider
This operational change, intended to cut costs, resulted in a supply chain breakdown. DHL's limited infrastructure and logistical challenges led to delivery delays and spoiled chicken. By February 18, 2018, only 266 of KFC's 870 outlets in the UK and Ireland remained open.
Facing a logistical crisis, KFC rehired Bidvest Logistics to handle deliveries for about one-third of its outlets. The company also employed humour and humility in its crisis communication, apologising to customers and staff while working to resolve the issue.
Despite the initial setback, KFC's business bounced back stronger. The brand's UK market share increased to 8.1% in 2019, up from 7.3% in 2017, showcasing the company's successful recovery and enhanced market position following the logistics switch and subsequent challenges.
Chicken Ranch Casino: Slots Galore
You may want to see also
Explore related products
KFC's apology to customers
KFC has apologised to its customers for running out of chicken in a light-hearted manner. In February 2018, KFC experienced a chicken shortage that forced the closure of over 750 of its 900 outlets in the UK and Ireland. This issue was caused by a change in their logistics provider from Bidvest Logistics to DHL, which operated out of a single warehouse.
In response to the crisis, KFC took a unique approach to their public relations strategy, focusing on humility, humour, and honesty. They placed full-page ads in newspapers with an image of an empty bucket of chicken and the letters rearranged to spell "FCK". They also posted signs on closed stores, stating:
> Sorry, we’re closed. We deliver our chickens fresh into our restaurants, but we’ve had a few hiccups with the delivery today. We wouldn’t want to be open without offering our full menu, but we’ll be back at the fryers as soon as we can.
KFC also released a statement on social media, using a riddle to address the situation: "Why did the chicken cross the road?" Their Twitter account attempted to lighten the mood with chicken-related jokes, such as:
> Some chickens have now crossed the road, the rest are waiting at the pelican crossing.
KFC's creative approach to crisis communication paid off, and their business bounced back stronger than ever. By May 2018, their brand perception had returned to pre-crisis levels, with a net positive sentiment of +31% by the end of the year. Their market share in the UK also increased to 8.1% in 2019, up from 7.3% in 2017.
Carbs in Buffalo Chicken Wrap: What's the Count?
You may want to see also
Explore related products
KFC's staff and franchise partners
As many of you are aware, the issue began in February 2018 when we transitioned to a new logistics partner, DHL. Unfortunately, there were some initial challenges with the delivery system, which resulted in delays and disruptions to our chicken supply. This, in turn, led to the closure of many of our stores across the UK and Ireland. We know that this situation may have caused uncertainty and inconvenience for our staff and franchise partners, and we apologise for any difficulties it may have created.
During this time, we were impressed by the resilience and dedication of our team. We worked tirelessly to address the supply issue, and many of you went above and beyond to support our efforts. We recognise that some of you may have had to take on additional responsibilities or adapt to changing circumstances. Your flexibility and commitment to our brand were instrumental in helping us navigate this challenge.
To our franchise partners, who cover around 80% of our outlets in the UK, we understand that this situation may have presented unique challenges for your businesses. We encouraged you to adopt policies to support your staff during this time, and we hope that together, we were able to minimise the impact on our teams and our customers. We value your partnership and collaboration, which played a crucial role in helping us overcome this hurdle.
As we move forward, we want to assure you that we have learned from this experience. We are committed to strengthening our supply chain and implementing measures to prevent similar issues from occurring in the future. We will continue to work closely with our partners and suppliers to ensure a stable and reliable supply of our signature chicken.
Finally, we want to express our deepest gratitude to each and every one of you. Your unwavering dedication to KFC, even in the face of adversity, is a testament to the strength of our brand and our community. We are proud to have you as a part of the KFC family, and we will continue to work together to serve our customers and deliver the KFC experience they know and love.
Signing Up for Chick-fil-A One: A Step-by-Step Guide
You may want to see also
Frequently asked questions
Yes, in February 2018, KFC ran out of chicken in the UK.
KFC switched its logistics provider from Bidvest Logistics to DHL, which only had a single warehouse in Rugby. This caused issues with deliveries, as entire trucks of chicken were spoiling due to incorrect temperature regulator settings and a lack of staff and training.
KFC took several steps to address the chicken shortage. They rehired Bidvest Logistics to handle deliveries for around one-third of their outlets, particularly in Northern England. They also provided updates and apologies to customers through various channels, including social media, closed signs on stores, and advertisements in newspapers. Additionally, they assured customers that they would not compromise on quality and that their restaurant teams were working hard to resolve the issue.
