The KFC fast food chain is obviously most famous for its chicken. That is what they have built their entire name and reputation on. However, the chain has been reporting problems with their supply of chicken in recent days. Thus, some three percent of stores in the United Kingdom have had to temporarily close due to having no supplies says CNN Money.
Many things besides just the chicken were in short supply at the restaurant. Corn, lettuce, and other supplies were also out in many places. It was determined that the company should just close some stores rather than try to continue to operate in this environment.
Part of the problem for KFC has been that they switched to a new delivery supplier last month. Their new supplier is trying to keep up with all demand says the company. DHL is the name of the supplier, and KFC has said that the issues they are running into stem back to problems at DHL. Obviously, this is not the kind of start that DHL was hoping to have with KFC in this new partnership. However, this is where we are at this point.
Gravy has been short in many stores, but KFC insists that the brown goop is available in the vast majority of their locations. They are hopeful to have the stores that they have had to temporarily closed back up and running in the near future. For now it remains a public relations problem more than anything.
Last week KFC took out a full page ad in national newspapers in the UK to apologize for the shortages of chicken that it has had lately. They wanted to tell their customers that they would be back up and running as soon as humanly possible. The United Kingdom is a very important market for KFC given that it is the largest of their European operations at the moment.
All of this news may be welcome to the ears of competitors like Popeyes and Bojangles. They have not reported the same problems with their inventory. Perhaps the spotlight shines most brightly on DHL and their failure to deliver on even the most basic of orders. They certainly have had to clean up the mess that they have made when it comes to this deal with KFC. Considering this, it is vital to pay attention to how this one plays out. Just a minor snafu that is cleaned up quickly or an ongoing problem?