KFC (formerly Kentucky Fried Chicken) is the category leader in the fast food chicken category, and they are slipping. They have lost about 6 points of market share in the last five years. Who’s coming on strong? Focused, differentiated competitors like Chick-fil-A (my favorite), as well as Popeye’s and Church’s. What makes these chains successful while the category leader is slipping?
Getting back to the basics of focusing on what makes you different. For Chick-fil-A its keeping the product on target and providing what their CEO calls “second mile service.” For a company whose stores are only open six days a week (never on Sunday) they average about $3M per store in revenue (better than the average McDonald’s).
And Popeye’s? Their Chief Marketer decided they should focus on the food, which is what their heritage of difference was all about. They have a Louisiana heritage and he decided it was time to re-leverage that. Including changing their name to Popeye’s Louisiana Kitchen.
Meanwhile KFC is shrinking while losing its mojo. Can they fix it. Sure. Established brands have a big head start (look at the sales recovery Toyota is making despite its negative publicity). Will they fix it? Don’t know.
My message to you is the same as it has been in all of these posts about focus. Get some, make sure it matters to your customers, and then stick to it.