Mia Patel
In February 2018, KFC ran out of chicken. This resulted in the closure of over 750 of its UK outlets, with only 266 of 870 restaurants remaining open in the UK and Ireland. The issue arose due to a combination of factors, including KFC's switch to a new logistics provider, supplier issues, and poor preparation. The public response was intense, with customers expressing their frustration on social media and police departments issuing statements asking people not to call emergency services regarding the chicken shortage. KFC's handling of the crisis, including their apology ad campaign and engagement with customers on social media, transformed it into a positive brand image and a case study in crisis management.
| Characteristics | Values |
|---|---|
| Date | February 2018 |
| Number of KFC outlets that ran out of chicken | 750 |
| Total number of KFC outlets in the UK | 900 |
| Number of KFC outlets that remained open | 266 |
| Number of mentions of KFC running out of chicken on social media on 21 February 2018 | 53,000 |
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What You'll Learn
KFC's #ChickenCrisis
In February 2018, KFC faced a logistical crisis when it ran out of chicken, resulting in the closure of over 750 of its UK outlets. This sparked a public outcry, with global news coverage and social media erupting with hashtags like #ChickenCrisis and #KFCCrisis. The issue began when KFC switched its logistics provider from Bidvest Logistics to Quick Service Logistics and Deutsche Post-owned DHL, which operated out of a single warehouse in Rugby. The transition to a new warehouse and IT system, coupled with delivery lorries getting stuck in traffic near the motorway, caused significant delays and ultimately led to the chicken shortage.
KFC's response to this crisis was highly acclaimed and is now considered a case study in corporate crisis management. The company opted for a mass-scale public apology and transparent communication with its customers. They rearranged the letters of their name to spell "FCK" on a chicken bucket, conveying a creative and honest apology. KFC also actively addressed customer queries on social media and provided Q&As to keep their customers informed.
The impact of this crisis on KFC's brand perception is noteworthy. While there was initial negative sentiment and media coverage, KFC's clever apology ad helped transform the situation. The company's impression score only dropped slightly during the crisis and even increased by one point afterward. Additionally, the incident helped heal internal divisions, with staff feeling supported and valued by the company's response.
The KFC #ChickenCrisis of 2018 offers valuable insights into crisis management and brand resilience. By focusing on accountability, transparency, and effective communication, KFC was able to mitigate the negative impact and maintain customer trust. This incident showcases the importance of honesty and effective messaging in rebuilding brand reputation and strengthening customer relationships.
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KFC's PR response
We at KFC are truly sorry for the inconvenience and disappointment caused by the recent supply chain issues that have affected our stores. We understand the frustration this has caused for our valued customers, and we are doing everything in our power to resolve the situation as quickly as possible.
As many of you know, we recently transitioned to a new logistics partner, and unfortunately, some unforeseen delays have impacted our ability to deliver our signature chicken to our stores. We assure you that we are working around the clock with our partners to get our famous fried chicken back on the menu and serve our loyal customers once again.
This has been a challenging time for our company, and we want to thank our customers for their patience and understanding during this period. We are grateful for your support, and we promise to learn from this experience to ensure it doesn't happen again.
In the meantime, we will continue to provide updates on our progress and do our best to address any questions or concerns from our customers. We thank you for your loyalty and hope to welcome you back to our stores very soon.
We at KFC take pride in our commitment to serving our customers the best-tasting chicken, and we apologize for any disruption this has caused to your dining experience. Thank you for your continued support, and we look forward to serving you again soon.
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KFC's customer trust
KFC ran out of chicken in February 2018, which led to a crisis that affected over two-thirds of its 900 outlets in the UK. The crisis was caused by a combination of factors, including KFC's decision to switch its logistics provider from Bidvest Logistics to Quick Service Logistics and Deutsche Post-owned DHL, which operated out of a single warehouse in Rugby. This switch, combined with high demand, automation issues, and planning software problems, led to significant supply chain disruptions.
Despite the challenges, KFC managed to maintain customer trust and even enhance its brand image through effective crisis management. Here's how KFC successfully navigated this challenging situation and maintained its customers' trust:
Apology and Accountability: KFC took responsibility for the issue and apologized directly to its customers through social media channels and newspapers. Instead of playing the blame game with its chicken suppliers, KFC owned the problem and expressed remorse for the inconvenience caused.
Communication and Transparency: KFC actively engaged with its customers on social media, addressing their questions and concerns. They tweeted various Q&As and provided updates on the situation, keeping their customers informed and involved.
Creative Advertising: KFC and its agency, Mother, launched a clever advertising campaign to mitigate the disruption and explain the steps being taken to fix the issue. They rearranged the letters of their name to spell "FCK" on a chicken bucket, accompanied by an apology. This campaign transformed negative sentiment into a brand breakthrough and demonstrated KFC's willingness to acknowledge and address the issue head-on.
Focus on People: KFC understood that their brand is built on people—both customers and employees. They prioritized honesty and transparency in their communications, recognizing that customers value authenticity and accountability. By listening to their customers' concerns and taking action, KFC demonstrated its commitment to making things right.
Print Media Strategy: KFC utilized print media as a trusted medium to reach a sizeable minority of UK consumers. This strategy helped them deliver their message effectively and reconnect with their audience, rebuilding trust and strengthening their brand presence.
By addressing the issue head-on, apologizing sincerely, maintaining open communication, and demonstrating their commitment to their customers, KFC successfully navigated a challenging situation and maintained the trust of its loyal customer base. The effective crisis management strategies employed by KFC not only mitigated the negative impact but also transformed the crisis into a positive brand-building opportunity.
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KFC's supply chain issues
In late 2017, KFC UK ended its relationship with food-delivery specialist Bidvest Logistics, which operated six warehouses across the UK, and instead signed a contract with Quick Service Logistics and Deutsche Post-owned DHL. DHL operated out of a single warehouse in Rugby, which some experts have argued was insufficient for serving KFC's extensive network of restaurants across the country.
On February 14, 2018, a collision involving seven vehicles on the M6 motorway near DHL's warehouse caused significant delivery delays. DHL's lorries were caught in the resulting traffic, and with no other locations to dispatch deliveries from, this quickly developed into a full-blown supply chain crisis for KFC.
By February 17, two-thirds of KFC's outlets in the UK had run out of chicken and were forced to close, sparking a public outcry and a flurry of media coverage. The situation deteriorated further over the next few days, with hundreds of restaurants affected and global news outlets covering the story.
KFC's response to the crisis was widely praised as a masterclass in crisis management. The company issued a mass-scale public apology to customers and franchisees, taking responsibility for the disruption without playing a blame game with its suppliers. KFC also maintained a visible presence on social media, actively addressing customers' questions and concerns.
The fast-food chain's creative agency, Mother, devised a clever advertising campaign to mitigate the negative sentiment. They rearranged the letters of KFC's name to spell out "FCK" on a chicken bucket, alongside the message, "We're sorry." This bold and honest approach transformed the crisis into a brand breakthrough and set a new standard for corporate crisis management.
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KFC's logistics partner, DHL
In 2017, KFC UK decided to switch its logistics provider from Bidvest Logistics to Deutsche Post-owned DHL, best known for its home delivery. KFC appointed DHL and QSL to manage the supply and distribution of food products, packaging, and consumables for over 850 restaurants in the UK. DHL was to manage the physical warehouse and distribution service, with a focus on innovation, quality, and service performance.
DHL's warehouse is located in Rugby. The delays that led to the KFC chicken shortage began here, with lorries getting stuck in traffic as soon as they left the depot. There was nowhere else to send deliveries from, and so KFC restaurants began to run out of key ingredients, including chicken. By February 17, 2018, two-thirds of KFC's 900 outlets in the UK had no chicken and were forced to close.
DHL issued a statement apologizing for the inconvenience and disappointment caused. They were not the only party responsible for the supply chain, but the company was scrutinized for its failure to deliver KFC's ingredients and for using a single depot. However, using a single warehouse is not uncommon, and DHL is not the only logistics company to do so.
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Frequently asked questions
KFC started to shut down locations in response to their missing ingredient on February 16, 2018, with only 266 of the 870 restaurants in the UK and Ireland remaining open by February 18.
The cause of the shortage was a combination of factors, including KFC's switch to a new logistics provider, supplier issues, and poor preparation.
KFC issued a mass-scale public apology to mitigate the disruption caused and provided a clear and transparent explanation of what was being done to fix the issue. They also actively addressed customers' questions and concerns on social media.
The public response was explosive, with people taking to social media to express their frustration and disappointment. Hashtags such as #ChickenCrisis and #KFCCrisis trended, and multiple police departments had to issue statements asking people not to call emergency services regarding the chicken shortage.
