Based by Colonel Harlan Sanders, KFC is an American meals icon. The primary KFC franchise opened in 1952. For greater than 70 years, KFC has unfold fried hen worldwide. However altering occasions haven’t been form to the as soon as No. 1 hen spot.
KFC’s gross sales and buyer visitors have been down most quarters since 2023. There have been management shake-ups, retailer closures, and fixed buyer criticism that the menu is overpriced. In that very same time, the competitors to be prime chicken has intensified. As soon as the preferred quick meals hen model on the earth, KFC now falls at No. 3 (behind Chick-fil-A and Popeye’s) on most trade rankings.
There are lots of elements contributing to KFC’s present struggles. Total, they level to a longtime model that has been achingly gradual to adapt to a altering buyer preferences and market forces. It is a huge enterprise, with greater than 30,000 places in 96 nations. It has to cater to various tastes, and altering course might be like making an attempt to show the Titanic. What went so mistaken? Learn on for particulars.
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Gross sales Are Down
KFC bag resting on a desk – eighth.creator/Shutterstock
In line with KFC quarterly stories, the model skilled a number of quarters of declining gross sales, ending 2024 general with 5% decrease gross sales than in 2023, per Reuters. The primary few months of 2025 had been no higher. Current stories point out that KFC is down by about 4% extra, notes Restaurant Dive. That is won’t seem to be lots, however the hen big has been sliding since 2022, when KFC noticed about an 8% decline in common gross sales per unit, after a earlier eight years of regular development. In 2023, competitor Popeye’s unseated it because the No. 2 hen model by market share. Add the low gross sales via each quarter of 2024, and it is clear to see that KFC’s downward flip is now a long-term development.
KFC’s losses are extra dramatic when you think about the higher quick meals market. In 2024, quick meals (or “fast service”) gross sales had been up all throughout the U.S. KFC was one of many few manufacturers that posted decrease gross sales, whereas the remainder of the trade noticed larger visitors and earnings. The distinction cannot be boiled right down to a public disdain for poultry. Different hen manufacturers like Wingstop and Elevating Canes grew in 2024. With trade insiders already lowering general restaurant gross sales projections for 2025, it would not seem to be an incredible local weather to reverse KFC’s fortunes.
Site visitors Is Down
Cashier handing meals to a buyer via a drive through window – EAKARAT BUANOI/Shutterstock
A giant purpose KFC’s gross sales are down? The shoppers merely aren’t coming. In 2024 and 2025, KFC noticed month-to-month visitors declines from 2% to 12% each quarter.
Clients have practically limitless choices for quick meals hen. Manufacturers like Wingstop and Chik-fil-A provide a extra centered menu and a extra distinct expertise for patrons searching for grab-and-go sandwiches or endlessly customizable wings. KFC’s menu, by comparability, might be complicated and tough to customise. In an period the place shopper appetites for personalised experiences are practically limitless, can an entire household or good friend group conform to share a single bucket of the identical hen?
The hen competitors has additionally expanded past conventional quick meals chains. Grocery shops now provide high quality ready hen choices. Meals supply apps have additionally made native restaurant meals extra accessible than ever. Former KFC loyalists could merely have discovered a method to get their hen repair elsewhere.
High quality Is Down
Buyer finishing satisfaction survey on a smartphone – GamePixel/Shutterstock
We hate to say it, however it could be true that KFC’s high quality has declined together with its gross sales and visitors. In our latest rating of fast-food fried hen, KFC got here out on the very backside. On the subject of general buyer expertise, about 80% of all KFC’s buyer complaints relate to meals high quality and repair.
Analysis by advertising community Advertising and marketing Scoop means that KFC additionally receives a better variety of buyer complaints than rivals. In line with knowledge compiled from varied shopper reporting companies, KFC receives a median of 5,000 month-to-month buyer complaints. In that very same knowledge set, Advertising and marketing Scoop counted 500 month-to-month complaints for competitor Chick-fil-A. Sure, KFC has extra places than Chick-fil-A. However at round 4,000 US places to Chick-fil-A’s 3,000, KFC’s relative dimension cannot account for 10 occasions the variety of unfavorable opinions.
The distinction between the rivals is dramatic on the Higher Enterprise Bureau web site. With 621 opinions on the time of publication, KFC earns an general rating of 1.4 out of 5 stars. Clients on the platform complain most about excessive costs and “frequent order inaccuracies.” Alternatively, Chick-fil-A clocks in a 2.1 out of 5 stars with 578 opinions. That is a 50% larger rating, with solely about 7% fewer opinions.
Shops Are Closing
Closed signal hanging on glass door – Grace Cary/Getty Photos
KFC is a franchise-based mannequin, which means the brick-and-mortar shops aren’t all owned by the mum or dad firm. They’re owned by unbiased franchise homeowners who companion with the model. This is usually a quick method to develop a sequence enterprise, however it can be precarious, with disputes between homeowners or various ranges of service high quality resulting in poor customer support and closures.
When these closures occur, they are often huge they usually can occur quick. In 2024, a single KFC franchise proprietor closed 25 KFC places all through the Midwest. After a dispute with the franchise proprietor, the model introduced an extra closure of 283 KFC places in Turkey.
These widespread closures sign potential underlying points for KFC past the ever-present dangers of the franchise enterprise mannequin. Every shuttered KFC location represents a step again for the model in aggressive markets. As competitor hen chains proceed increasing, these KFC closures create alternatives for rivals to seize KFC’s clients. The sample of closures throughout a number of areas begins to appear like a systemic problem quite than a handful of remoted incidents. For a legacy model preventing to keep up relevance with youthful customers, these closures might speed up unfavorable perceptions concerning the model’s long-term relevance.
Competitors Is Heating Up
A KFC Saucy restaurant in Orlando – KFC
Anybody who remembers the Nice Hen Sandwich Battle of 2019 (launched when Popeye’s blew everybody’s minds with its spicy hen sandwich) is aware of that quick meals hen is aggressive. In recent times, new chicken-based manufacturers have emerged, and shortly discovered locations at clients’ kitchen tables.
These newer manufacturers provide a contemporary tackle the traditional hen, with fashionable flavors and fashionable sensibilities. California-based juggernaut Starbird touts its considerate ingredient sourcing and world taste combos like mango-habanero and Thai herb aioli sauces.
Dave’s Scorching Hen was simply bought for $1 billion by non-public fairness agency Roark Capital in March of 2025. Roark already owns huge manufacturers Dunkin’ and Subway. This new deal units the already fashionable chain up for enormous franchise enlargement within the 12 months forward. KFC appears to be selecting the “if you cannot beat them, be a part of them” technique. It is launching a separate chicken-based model centered on hen tenders in 2025. The youth-focused model known as Saucy. Plans name for a menu of authentic recipe hen tenders with eleven choices for dipping sauces.
It is Transferring Its Headquarters
KFC model brand – Nedikusnedi/Shutterstock
Although it shortened the identify from Kentucky Fried Hen to KFC in 1991, the hen model stored its headquarters within the Bluegrass State. In 2025, the hen model will transfer its headquarters to Plano, Texas. Publicly, KFC heads have acknowledged it’s a transfer that may scale back prices and create effectivity on the company stage.
Father or mother firm Yum! Manufacturers is already headquartered within the Lonestar State. The transfer places KFC management facet by facet with colleagues at Pizza Hut and Taco Bell, that are each at present extra fashionable with U.S. customers. From a enterprise perspective, this is sensible. Nevertheless it’s additionally giving “transferring residence to reside along with your mother and father since you maxed out your checking account” vibes. Tellingly, KFC’s extra profitable Yum! Model siblings Taco Bell and Behavior Burger get to stay of their Irivine, California pad.
The relocation will probably save KFC on taxes. Texas has no company tax, whereas Kentucky’s present company tax price is 6%. It will additionally make it simpler for Yum! to redistribute the KFC workforce all through the group if the hen big goes stomach up.
Customers Are Complicated
girl shopping for groceries in a grocery store – Dragana Gordic/Shutterstock
The CEO of KFC’s mum or dad firm Yum Manufacturers lately attributed the chain’s gross sales and visitors declines to a “complicated shopper surroundings,” per NRN. He is not mistaken. Client tastes have modified dramatically within the practically 100 years KFC has been in enterprise.
Customers these days need meals which are each tasty and reasonably priced, with plant-based choices in sustainable packaging. They usually need to be ok with sharing it on TikTok. The rising curiosity in plant-based meals is one clear instance of the place KFC could also be failing to fulfill clients’ complicated wants.
Between 2019 and 2022 alone, the gross sales of plant-based meals grew by 13% within the U.S., notes a examine from the Plant Based mostly Meals Affiliation. At the moment, KFC doesn’t provide plant-based protein various on the U.S. menu. It examined a vegan hen choice with plenty of fanfare in 2022, however it was just for a restricted time. Eradicating it from the menu could have left many vegetarian and vegan diners unwilling to make a meal of sides on the hen big.
Promotions Underwhelmed Clients
KFC hen and fries – Klymenko Mariia/Shutterstock
Talking of restricted time gives, KFC spent a lot of 2024 rolling out a number of restricted time promotions like its “Style of KFC” worth menu. Historically, KFC’s limited-time gives (LTOs) had been winners for the model — the 2010 Double-down sandwich was a social media phenom.
However one way or the other, the LTOs in 2024 hit completely different. Even a promotional holiday-themed hen bucket full with a streetwear assortment did not transfer the needle. These advertising methods might have been ill-timed. A splashy collaboration with a streetwear artist that includes expensive merch could not have been a slam-dunk amidst a backdrop of inflation fears, particularly for model customers already understand as expensive — until you want a $32 pair of shorts with “finger-lickin’ good” embroidered on the leg. Which, sure, you should buy straight from the KFC web site.
Even value-focused promotions just like the Dunk It Bucket worth meal didn’t launch. The $7 meal mixed hen tenders, french fries, and Mashed Potato Poppers with three dipping sauces. On-line clients criticized the menu merchandise, likening the dish’s dimension to a “youngsters meal.”
In at this time’s chicken-eat-chicken quick meals world, manufacturers want to seek out methods to be versatile whereas sustaining their core id. KFC’s incapacity to generate real pleasure (and translate that pleasure into {dollars}) via these latest promotions might point out deeper model positioning points. With out profitable campaigns that resonate with customers, KFC dangers dropping extra clients to rivals who higher perceive their viewers’s present wants.
The Hen Provide Chain Is Unstable
Hen in a area – Tina Terras & Michael Walter/Getty Photos
The complete hen provide chain has struggled with rising costs and decrease provides resulting from chicken flu and logistical challenges, driving up costs. This makes it exhausting for a hen central model to compete on worth. When just about your total menu revolves round hen, you possibly can’t simply pivot to promoting extra burgers or salads when poultry will get expensive (particularly when there’s the long-lasting 11-spice concoction that makes KFC’s hen stand out). KFC is in a harder spot than non-chicken-based manufacturers proper now. Holding costs regular might imply dropping cash; elevating costs might imply dropping clients.
Trade forecasts recommend these provide chain pressures will proceed via 2025. The USDA predicts that U.S. poultry costs with improve by at the least 1% in 2025, and they’re anticipated to rise steadily over the following 10 years. As the most important hen primarily based meals model on the earth, KFC feels the pressure of those market shifts extra dramatically than smaller rivals.
Modernizing A Legacy Model Is Difficult
KFC Authentic inside dinign room – Serhii Shcherbyna/Shutterstock
With all that mentioned, KFC is an enormous model that has been frying up broilers for practically a century. KFC has amassed greater than 30,000 places throughout the globe. KFC’s authentic recipe hen served in its purple and white striped bucket has turn out to be a quick meals icon. Making any change in a enterprise that dimension and that established is like making an attempt to rebuild a airplane whereas it is flying.
The corporate faces a traditional legacy model dilemma — learn how to evolve to enchantment to new clients with out alienating a loyal fan base. KFC took an revolutionary step in 2024, testing a number of spin-off ideas. Along with the tenders-based Saucy, KFC additionally examined a extra tech-heavy KFC prototype restaurant known as KFC Authentic in 16 places all through Orlando, Florida. With extra ordering kiosks and a nostalgia-inflected inside, KFC Authentic additionally incorporates a extra streamlined menu than a regular KFC. The response in Florida was so promising that the Colonel is changing a number of Texas KFCs into KFC Authentic places in 2025.
Different quick meals manufacturers have tried spinning off sibling manufacturers with combined success. Anybody bear in mind Chipotle’s spinoff Pizza Locale? KFC is betting that the take a look at ideas will mimic the success of McDonald’s CosMc’s spinoff. Launched as a single Chicago location in 2023, the beverage-based CosMc’s added six extra places in 2024. Solely time will inform if KFC’s take a look at ideas repeat that success.
KFC Was Slower To Undertake Tech Options
girl ordering from a KFC kiosk – frantic00/Shutterstock
The methodical strategy to rolling out adjustments could have made KFC slower to leap on the tech practice than its rivals. Quick meals manufacturers like McDonald’s and Wendy’s have relied on self-service kiosk tech since round 2017. Hen competitor Popeye’s rolled out a tech glow up in 2022. As talked about above, KFC made tech integration a serious a part of the brand new KFC Authentic model extension. It may very well be too little, too late; the tech-savvy buyer base could have already moved to different manufacturers.
Behind the scenes, KFC was gradual so as to add different cost-saving instruments like AI-enabled stock administration instruments and focused digital advertising. These instruments are much less seen to customers however enhance visitor expertise in innumerable methods. AI-enabled stock monitoring helps companies establish the perfect costs from distributors and supply options. This interprets to extra constant costs for patrons.
Focused advertising instruments routinely filter clients into teams primarily based on previous purchases. So clients expertise promotional messages which are related to their pursuits. Stock and AI-driven advertising instruments might create sufficient effectivity to scale back prices. Including extra background tech earlier may need helped keep forward of rivals. However with the sheer variety of places and large franchise operators which are a part of the KFC eco-system, it might merely be too huge an establishment to undertake change shortly.
KFC Lagged On Loyalty
KFC rewards app on a smartphone – KFC
Returning clients are the bread and butter of any meals enterprise. So loyalty packages are a no brainer for many manufacturers. Poultry powerhouse Chick-fil-A has supplied loyalty since 2013. The Chick-fil-A loyalty program made the genius transfer of beginning off as a VIP, invitation-only system, including the enchantment of FOMO to the combination. KFC did not provide a worldwide loyalty app till 2024 — two years after competitor Popeyes began its loyalty program.
Some KFC markets across the globe had varied schemes to reward returning clients. Within the some non-U.S. markets, clients might acquire stamps to redeem free menu objects. There was an enormous buyer outcry when KFC discontinued this program in 2022. KFC’s loyalty program, KFC Rewards, provides clients 10 factors for each greenback spent in retailer or by way of the KFC app. Clients can use factors to redeem particular gives out there within the app’s “Secret Recipe Vault.” They will additionally obtain personalised gives primarily based on order historical past. If customers are within the temper for gamification, they’ll additionally go for rotating in-app offers on particular menu objects.
Feedback within the KFC subreddit recommend the brand new loyalty app would not really feel, properly, rewarding. Clients had been initially enthusiastic. However a 12 months into the rollout, the final consensus appears to be that the promotions supplied do not do sufficient to decrease the general menu value for value-conscious diners.
New Management Is At The Helm
Org chart with positions crossed out – Erik AJV/Shutterstock
Since 2023, KFC has changed nearly all its model management, from chief monetary officer to chief advertising officer. In 2024 and 2025, KFC changed each its CEO and firm president, bringing in leaders from Taco Bell and selling a former KFC world advertising chief to KFC U.S. president. It additionally created a brand new position; chief digital officer, and staffed it with a Marriot alum with loyalty expertise. These huge strikes point out an understanding that the model must make huge adjustments to remain related.
The management transformation represents extra than simply C-suite musical chairs. KFC has intentionally sought executives with digital transformation expertise and monitor information for wonderful customer support. New CEO Scott Mezvinsky, who was appointed in March 2025, beforehand helmed sibling Yum model Taco Bell, which persistently delivers in buyer perceptions of worth.
Catherine Tan-Gillespie, the newly appointed KFC U.S. president, beforehand led the KFC Canada division. Below her management, KFC Canada turned identified for digital transformation and value-driven choices. These appointments, together with the creation of the chief digital officer position, sign a concentrate on technology-driven enhancements to the KFC buyer expertise. KFC clearly sees the problem forward of them, and hopes this new workforce understands their task.
It is Leaping On The Bowl Bandwagon
KFC Hen strips in a bowl with sides – Klymenko Mariia/Shutterstock
In 2025, KFC is banking on attracting clients with new bowl-based menu choices, hoping to lastly shift buyer notion that the model is just too expensive. The brand new bowls are $5 and have nuggets served in a heap of KFC sides. Clients can get their hen in both Authentic recipe or Nashville Scorching, served on a mattress of fries, mashed potatoes, or mac and cheese.
Different quick meals manufacturers have seen plenty of success with bowls. Quick meals juggernaut Sweetgreen’s status is constructed nearly totally on bowls. Any shift in Chipotle’s burrito bowls results in buyer backlash. Taco Bell’s veggie bowl is a serious purpose the chain is fashionable with vegetarian clients.
Bowls are a protected guess for plenty of causes. By combining a number of components in a single container, KFC can ship worth to clients with out extra value to the operation. Like so many KFC menu objects, although, these bowls are designed as limited-time gives. So there’s an opportunity they may disappear after clients discover their favourite. Will discovering a beloved bowl be sufficient to draw new KFC clients and persuade them to turn out to be regulars? Solely time will inform.
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