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Chickening Out Hurts the Bottom Line
The Corner National Review ^ | August 19, 2010 | John Hood

Posted on 08/19/2010 6:22:26 AM PDT by La Lydia

The suits at KFC — the restaurant chain that used to be called, proudly, Kentucky Fried Chicken — have claimed that their 2009 decision to emphasize grilled chicken and sandwiches was based on “extensive consumer research.” I don’t find their assertion credible. I think they were trying to adjust the company’s direction and marketing strategy to their perception of the prevailing political and social attitudes about obesity. I don’t think the execs carefully considered how their consumers would react, particularly to ad campaigns that explicitly repudiated the fried-chicken brand of KFC.

I’m not alone in drawing these conclusions. KFC franchisees are livid about the resulting loss of business. They have sued the parent company to wrest control of KFC marketing from execs who fail to understand that, in the words of one franchisee, “by and large the general public doesn’t give a damn how many calories are in it.” After all, dieters and health-nazis are unlikely to make up a significant share of the KFC customer base in any event.

What’s the larger significance of KFC’s internal battles? In both the public and private sectors, far too many decisions are made on the basis of silly fads, partial glimpses of nebulous trends, a temptation to placate powerful interest groups, or a pathetic desire to be seen as enlightened. In the private sector, companies sometimes waste time and money on pointless public-relations exercises, senseless recycling programs, and the like.

But subjected to the rigors of competition, these firms tend to pay the price over time and adjust their behavior accordingly. In the public sector, however, politicians don’t have to worry as much about losing ground to competitors. Their absurdities persist. Their pretensions multiply.

Leaders who make hard-headed decisions on the basis of valid empirical evidence, logical reasoning, and sound priorities tend to do well. Leaders who chicken out and pander tend to fail in the long run — except in safe political districts, where they can afford to screw up, hang around, and accumulate rent-controlled apartments.


TOPICS: Business/Economy
KEYWORDS: kfc; marketing; pc
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Except in safe, well-gerrymandered political districts....
1 posted on 08/19/2010 6:22:28 AM PDT by La Lydia
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To: La Lydia
Not sure what the concern about KFC selling gluten free chicken parts was about ~ that's a "raw" 3.4% of the market, plus considering normal group behavior, it's probably more than 10%.

They were giving it away to the roasted chicken folks, and I much appreciated their effort to win me back.

2 posted on 08/19/2010 6:28:13 AM PDT by muawiyah
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To: La Lydia

The Colonel would be dismayed.


3 posted on 08/19/2010 6:30:39 AM PDT by ronnyquest (There's a communist living in the White House! Now, what are you going to do about it?)
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To: La Lydia
Count me in that bunch that has deserted them...since they changed their cooking oil to fall in line with the PC police, their chicken sucks.

There is nothing I liked more than their "original receipe" chicken...but now that they have changed the oil, the "original recipe" has the texture of their "crunchy" chicken.

Also, the last two I went to were being run by obama fans and service was nearly non-existant.

Sounds like corporate is doing to the franchisees what obama is doing to America....
4 posted on 08/19/2010 6:30:45 AM PDT by FrankR (It doesn't matter what they call us, only what we answer to....)
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To: La Lydia

I love fried chicken but KFC scares me. I’ve talked to too many people with horror stories about what goes on in those places.


5 posted on 08/19/2010 6:32:18 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: La Lydia
I say, I say I'd rather be grilled then fried any day.


6 posted on 08/19/2010 6:34:49 AM PDT by maddog55 (OBAMA, Why stupid people shouldn't vote.)
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To: La Lydia

Popeye’s chicken in better, anyway.


7 posted on 08/19/2010 6:35:21 AM PDT by Daveinyork
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To: La Lydia

In my town the deli section of most grocery stores sells fried chicken that is much better than KFC. KFC is a grease bomb - it makes White Castles look healthy.


8 posted on 08/19/2010 6:38:03 AM PDT by circlecity
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To: FrankR

Ditto.

I used to love KFC but I can’t eat it now it is so bad.

In our neck of the woods, Bojangles is king.


9 posted on 08/19/2010 6:42:56 AM PDT by NeilGus
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To: La Lydia

They “used-to-have” a good product.

The worst problem right now with KFC restaurants is...

KFC restaurants.

I have not been back to the one in my town since a couple of years ago when I went by to get a bucket and they told me they were out of chicken. I laughed, I thought I was on candid-camera or something... they were serious.


10 posted on 08/19/2010 6:46:13 AM PDT by JWinNC (www.anailinhisplace.net)
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To: La Lydia

Leaders who make hard-headed decisions on the basis of valid empirical evidence, logical reasoning, and sound priorities tend to do well. Leaders who chicken out and pander tend to fail in the long run — except in safe political districts, where they can afford to screw up, hang around, and accumulate rent-controlled apartments.”

There is really an important epistemological point here. Getting to the truth of a social phenomenon is really best obtained through a means that is objective, non-emotional, and far-flung, ie, a price mechanism is the best thing in the economic context. If sales were good under “original recipe” then the rational thing would be to leave it alone if the company wants to profit (obviously, that is not the only goal of the shareholders....). Next to the price mechanism would be a reputable poll or focus group, but that has to be very, very hard-headed and done by a firm with no agendas other than arriving at some conclusions. That could then resemble their “extensive market research.” But that clearly wasn’t the case here, any more than it was in the 80s with “New Coke”.

In this regard, the epistemology of something like Hayek’s libertarianism and Burke’s conservatism are very similar - and very applicable.

In any event, listening to one person or loud interest group who has an agenda is clearly a way to get off into the weeds. All the time.


11 posted on 08/19/2010 6:46:39 AM PDT by ConservativeDude
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To: ConservativeDude

Get off in the weeds, and screw your franchisees.


12 posted on 08/19/2010 6:51:55 AM PDT by La Lydia
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To: Daveinyork

I love Popeye’s chicken but I can’t eat it because of the cooking oil they use. I don’t have anything against their oil, except that it disagrees with me. Since I really like their chicken, it bums me out.


13 posted on 08/19/2010 6:53:53 AM PDT by La Lydia
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To: circlecity

In my neighborhood, the Giant used to sell the best friend chicken around. Customers would hang around and stand in line to get it. Then the corporate people came in, rearranged the store and moved the chicken frying operation from the deli to the meat department. Now it just sucks, and the butcher tells me they are selling only 10 percent of what they used to sell. They did the same thing to their fried fish, with the same result.


14 posted on 08/19/2010 6:59:29 AM PDT by La Lydia
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To: FrankR

I used to like their chicken too, but now it just seems greasier and nasty. Like you, I’ve not been comfortable with the local franchise either. Last time we went, I had to ask the girl at the counter to repeat herself several times because I couldn’t understand her version of “minority-speak”. The service was also verrrrry slow. No thanks.


15 posted on 08/19/2010 6:59:59 AM PDT by Think free or die
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To: La Lydia
Oh for God's sake, people in the south have been frying everything under the sun for generations, including my family. We're not 500 lb behemoths. Every time we go to the doctor for our yearlies we always walk away with 'extremely healthy/fit' reports. This is one of the obesity-nazi claims that continues to get perpetuated; fried = fat. WRONG. Any reputable physician/anatomist will tell you that fat (ie. oil/grease) does not become fat in the body. Sugars (ie. glucose) becomes fat in the body. Where do those sugars come from? Carbs (ie. bread, pasta, cereal, rice). On top of that, we have whole generations sitting on their collective asses watching television for 15 hours a day. Go walk, ride a bike, take a hike, work in the damn yard, get a little sweat on your brow.

I'm sick and tired of ignorant people talking about things they don't know. My family and I have been eating fried foods for generations and we have never had health problems. STOP ATTACKING MY FRIED CHICKEN!

16 posted on 08/19/2010 7:14:48 AM PDT by LoneStarGI (Vegetarian: Old Indian word for "BAD HUNTER.")
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To: La Lydia

Yes. They deserve this lawsuit.

A franchise agreement is..well...a contract.

Seems like the greenie weenies / fat police are about to find that out. (At least I hope so....)


17 posted on 08/19/2010 7:16:37 AM PDT by ConservativeDude
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To: FrankR

Me too. KFC used to be my favorite fast food place; let alone “chicken” place.

I’ve been there a just handful of times over the last few years. Quality and taste is way down, the place is filthy, I haven’t gotten a correct order in years, and the staff latino/ebonics language in unintelligible.

I now go to Bojangles or Popeye’s for chicken (farther away and really out-of-the-way) and elsewhere in general.

Sad. I used to LOVE KFC.


18 posted on 08/19/2010 7:16:56 AM PDT by clee1 (We use 43 muscles to frown, 17 to smile, and 2 to pull a trigger. I'm lazy and I'm tired of smiling.)
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To: La Lydia

What’s completely missing from this article is a shred of evidence that KFC’s addition to its menu has hurt its bottom line.

A political analysis of what the author thinks or believes what went on in the boardroom tells us more about the author than what went on in the boardroom.


19 posted on 08/19/2010 7:17:28 AM PDT by dmz
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To: LoneStarGI

Sugars (ie. glucose) becomes fat in the body. Where do those sugars come from? Carbs (ie. bread, pasta, cereal, rice).”

You are SO right and it is pathetic as to how little this is realized!

There is a whole lot in this story to get pissed about!!!


20 posted on 08/19/2010 7:18:19 AM PDT by ConservativeDude
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