Emily Carter
In February 2018, KFC ran out of chicken in the UK, causing a crisis that shut down over two-thirds of its locations. The issue arose due to problems with the company's new delivery partner, DHL, which replaced the previous food-delivery specialist, Bidvest Logistics. DHL struggled to manage the complex logistics of supplying fresh chicken to KFC's 900 restaurants across the country from a single warehouse in Rugby. This resulted in significant delays and disruptions, leading to a chicken shortage that affected hundreds of KFC outlets. The situation garnered international attention, with customers expressing their frustration and disappointment. KFC issued a creative and humorous apology, rearranging its logo to spell FCK on a chicken bucket, along with messages acknowledging the issue. The incident highlighted the challenges of supply chain management and the potential consequences of switching logistics providers.
| Characteristics | Values |
|---|---|
| Date | February 2018 |
| Reason | KFC switched its deliveries from Bidvest Logistics to DHL, which only had one warehouse in Rugby |
| Number of closed outlets | 562-700 out of 870-900 |
| Number of open outlets | 266 |
| Percentage of closed outlets | 64-77% |
| Countries affected | UK and Ireland |
| Locations unaffected | Northern Ireland and the Republic of Ireland |
| Public response | Anger, ridicule, and frustration |
| Police involvement | Yes, in London's Tower Hamlets |
| Social media mentions | 53,000 on 21 February 2018 |
| Hashtags | "#ChickenCrisis", "KFCCrisis" |
| KFC's response | Public apology, signs on closed stores, and an ad with rearranged letters spelling "FCK" |
| DHL's response | Apology, stating they were not solely responsible for the supply chain issues |
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What You'll Learn
KFC's switch from Bidvest Logistics to DHL
In February 2018, KFC experienced a chicken shortage that forced the closure of hundreds of its UK outlets. The issue arose from problems with a new delivery contract with DHL, which had recently replaced Bidvest Logistics as KFC's logistics partner.
The transition to DHL was challenging, and the company struggled to meet the demands of KFC's just-in-time order culture across its UK franchises. By February 16, KFC restaurants were running out of key ingredients, including chicken, and hundreds of restaurants were forced to close by the following week.
DHL acknowledged that they were not the only party responsible for the supply chain issues but apologized for the inconvenience caused. The incident highlighted the importance of contingency planning and the potential risks associated with relying on a single warehouse for distribution.
KFC's response to the crisis was well-received, with the company opting for a creative and humorous approach to their public apology, rearranging the letters of their name to spell "FCK" on a chicken bucket. The unique apology ad was praised for its boldness and honesty, helping KFC navigate a challenging situation and rebuild trust with its customers.
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KFC's single warehouse in Rugby
KFC's decision to switch to a single warehouse in Rugby, UK, from Bidvest Logistics' six warehouses, was the main reason for the chicken shortage in February 2018. This switch was part of KFC's attempt to cut costs and revolutionise its supply chain. However, this move proved disastrous, as the single warehouse model lacked contingency planning and was susceptible to disruptions.
The choice to partner with DHL, which managed the Rugby warehouse, was also scrutinized. DHL struggled to meet the demands of KFC's just-in-time order culture, and their inability to deliver ingredients from a single warehouse led to the chicken shortage. The issue was exacerbated by a road collision near the warehouse that caused traffic congestion, hindering DHL's ability to distribute supplies.
Experts in logistics and supply chain management, such as Samir Dani, questioned the appropriateness of relying on a single warehouse for food distribution due to legality issues surrounding produce quality and contamination risks. Richard Wilding, on the other hand, argued that the single warehouse strategy was common, citing the golden rectangle region, which includes Rugby, as an ideal location for overnight deliveries across the UK.
The impact of the chicken shortage was significant, with over three-quarters of KFC outlets closing and the brand facing a crisis. KFC's response, a creative and humble apology ad, helped mitigate the situation and set a new standard for corporate crisis management. The incident highlighted the importance of robust supply chain management and contingency planning, especially when dealing with perishable goods.
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KFC's public apology and crisis management
In February 2018, KFC ran out of chicken in the UK, forcing hundreds of restaurants to close. The issue arose due to a change in logistics partners, from Bidvest Logistics to Deutsche Post-owned DHL, which operated out of a single warehouse. A road collision involving several vehicles further exacerbated the problem, causing significant delivery delays.
In response to this crisis, KFC set two objectives: a mass-scale public apology and a transparent explanation of the steps being taken to rectify the issue. Recognising that the UK public is often sceptical of corporate apologies, the company aimed to be bold and creative in its approach. Guided by the "three Hs": "humility, humour and honesty," KFC rearranged the letters of its name to spell "FCK" on a chicken bucket, alongside an apology written in a conversational tone. The ad acknowledged the issue with a touch of humour: "A chicken restaurant without any chicken. It’s not ideal."
The unique and playful approach to the apology ad was well-received, with some praising it as a stroke of genius that transformed a brand crisis into a breakthrough. KFC's strategy demonstrated a shift from traditional crisis management playbooks, avoiding the typical executive TV apology and refraining from blaming their new delivery partner.
In another incident, KFC faced backlash for sending a promotional message to German consumers referencing "Kristallnacht," which is widely viewed as the beginning of the Holocaust. The company issued an apology, calling the message "insensitive and unacceptable." However, critics pointed out that the apology lacked sincerity and accountability, blaming the error on an "unspecified 'system error' " rather than taking full responsibility.
These contrasting examples highlight the importance of sincere and thoughtful crisis management. KFC's successful "FCK" campaign during the chicken shortage demonstrated a creative approach that resonated with the public, effectively navigating a challenging situation and rebuilding customer trust.
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KFC's staff and franchise partners
We want to thank you for your hard work and dedication during the recent challenges we faced in the UK. As you know, we encountered significant disruptions to our chicken supply chain, which resulted in the closure of many of our restaurants across the country. This situation has undoubtedly caused difficulties for our customers, our staff, and our franchise partners.
Firstly, let's address the cause of these disruptions. In an effort to innovate and improve our supply chain management, we transitioned from working with Bidvest Logistics to partnering with DHL for deliveries. Unfortunately, this change did not go as smoothly as we had anticipated. DHL encountered several operational issues, including a vehicle collision and challenges with warehouse registration, that disrupted their ability to deliver fresh chicken to our restaurants. As a result, many of our locations were forced to close or operate with limited menus.
We recognize that this situation has had a direct impact on your livelihood. We are deeply sorry for any inconvenience and financial losses you may have experienced. To support you during this challenging time, we announced that salaried employees would be paid as normal, and staff on short-term contracts would be paid based on their average work hours over the past 12 weeks. We understand that this may not fully compensate for the hardship you have faced, but we want to assure you that we are committed to doing what we can to support our valued team members.
While we worked to resolve these issues, we also focused on transparency and accountability in our communications. We wanted to be honest with our customers and partners about the challenges we were facing, and we expressed our sincere apologies for the inconvenience caused. Our creative response, guided by the "three Hs" of humility, humour, and honesty, allowed us to connect with our audience in a bold and down-to-earth manner. We hope that our approach helped to rebuild trust and confidence in our brand.
Moving forward, we are committed to learning from this experience and strengthening our supply chain to prevent similar disruptions in the future. We value your resilience and dedication during this challenging period, and we hope that we can continue to work together to serve our customers and deliver the KFC experience they know and love.
Thank you for your understanding and unwavering support.
Sincerely,
[KFC Management]
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The impact on KFC's customers
KFC's chicken shortage in the UK in February 2018 had a significant impact on its customers. The issue led to the closure of hundreds of KFC outlets across the country, with only 266 out of 870 restaurants remaining open during the peak of the crisis. This meant that many customers were unable to access their favourite fried chicken and were left disappointed and frustrated.
The disruption caused by the chicken shortage was widely felt, with global news coverage and social media posts highlighting the issue. Customers took to social media to express their frustration and disappointment, with some even complaining to the police and a lawmaker about the limited menu in KFC outlets. The hashtag "#ChickenCrisis" trended on social media, with 53,000 mentions of KFC running out of chicken on 21 February alone.
The impact of the chicken shortage extended beyond disappointed customers. The closure of so many KFC outlets also affected the staff working in these restaurants. According to a spokesman for GMB, a trade union, staff in KFC franchises missed out on shifts and had no idea when their stores would reopen. There were also reports that staff were advised to use their holiday entitlement to cover their lost working time. KFC announced that it would continue to pay salaried employees as usual and staff on short-term contracts based on their average work hours, but this policy only applied to company-owned restaurants, which represent only 20% of its outlets in the UK.
The chicken shortage also caused a shift in customer behaviour, with some customers opting for rival fast-food outlets such as Burger King and McDonald's to satisfy their cravings. This led to a collective disappointment from KFC's loyal customer base, who were forced to seek alternatives during the crisis.
Overall, the impact of the chicken shortage on KFC's customers was significant, leading to widespread disappointment, frustration, and even a temporary shift in brand loyalty. The scale of the impact underscored the importance of effective supply chain management and contingency planning to ensure that such disruptions are minimised in the future.
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Frequently asked questions
KFC switched its delivery service from Bidvest Logistics to DHL, which only operated out of a single warehouse.
This led to a supply chain breakdown, with KFC restaurants running out of chicken by February 16, 2018.
KFC started to shut down locations, with only 266 of its 870 restaurants in the UK and Ireland remaining open by February 18, 2018.
The chicken shortage sparked global news coverage, with footage of angry customers who were forced to visit rival fast-food outlets. The London constabulary in Tower Hamlets even had to send a tweet reminding citizens that the shortage was "not a police matter".
