Business

Why hasn’t the chicken crossed the road?

By February 21, 2018 No Comments
KFC Twitter update

KFC has closed over 500 of its UK restaurants after delivery problems meant it ran out of chicken.

According to the company’s website 575 of the fast-food chain’s 900 outlets in the UK and Republic of Ireland were closed as of 21:00 on Monday 19th February.

Last week, KFC switched its delivery contract to DHL, which has blamed “operational issues” for the supply disruption.

Until 13 February, KFC’s chicken was delivered by specialist food distribution group Bidvest.

 

Cutting business costs, but at what cost?

Mick Rix, GMB union’s national officer said it had tried to warn KFC that switching from Bidvest to DHL was a big mistake. The change led to 255 job losses and the closure of a Bidvest depot.

He said: “Bidvest are specialists – a food distribution firm with years of experience. DHL are scratching around for any work they can get, and undercut them.

“Three weeks ago, KFC knew they had made a terrible mistake, but by then it was too late.”

Some media reports say the crisis could be costing the chain £1m a day, but any such figure at this stage is likely to involve a large amount of guesswork.

It’s difficult to calculate the cost to the company because 80% of KFC’s outlets are run by franchisees.

 

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