As the people of the United Kingdom try to get over the fact that Kentucky Fried Chicken (KFC) branches have closed because they can’t serve their signature product, we take a closer look at what this actually means by sharing a post from theguardian.com.
While none among KFC, DHL or QSL have given any indication of the financial damage the last week has caused, it’s likely to be significant. “Research suggests you get a big impact about 60 days after the event, and the drop in shareholder value can be in the region of 20%,” said Mark Wilding, a professor of supply change management at the Cranfield School of Management.
Experts disagree on the reasons for the chicken shortage, but most agree that the damage done will be significant, if not evenly distributed among the companies involved.
KFC’s marketing team has been praised for its careful handling of the crisis, particularly the judicial use of humor in tweets, and a full-page newspaper advertisement on Friday rearranged the letters on a chicken bucket from KFC to FCK.
When rivals Burger King offered a disappointed KFC fan free food for a year, the company tweeted: “Putting all your chips on the table … bold move BK. When our chips arrive we will match your stakes and too put all our chips on the table. Until then we have limited chips.”
In increasing the demand for Colonel Sanders’ secret recipe, there was a strong chance that KFC – if not DHL or QSL – could actually benefit from the crisis, according to the media commentator Mark Borkowski. “Scarcity creates demand. It’s reminded people about KFC, even those who haven’t had one for years,” he said. “When they get everything back running again, you can expect a stampede.”