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Franchisees sue KFC over grilled chicken ad focus
January 10, 2010
KFC seems to be putting all of its eggs in its grilled chicken basket, a move that hasn't sat well with a group of franchisees.
KFC National Council and Advertising Cooperative, which represents KFC franchise owners in the company's marketing decisions, has filed suit against the company because its advertising has focused on the grilled chicken line over its fried offerings, according to The Washington Post.
Since the launch in May 2009, Kentucky Grilled Chicken has been the star of the company's marketing. At the time of its launch, KFC president Roger Eaton said the better-for-you product was intended to boost falling sales caused in part by consumers looking for healthier food choices.
While the grilled offerings have added to the sales mix — KGC is on track to bring in $1 billion in sales in its first year, according to company estimates — the brand's fried offerings remain the primary driver.
According to The Washington Post, the cooperative said in its suit that the company's advertising focus demonstrates that management "appears to believe that the future of KFC lies with grilled chicken rather than fried Original Recipe or Extra Crispy chicken products." The suit also claims that Eaton has ignored franchisee input in the matter.
Jonathan Blum, Yum! Brands senior vice president, responded with the following statement:
"This is a baseless lawsuit over a U.S. franchise contract. Yum! Brands fully expects to win the suit and minimize the waste of time and money spent on it so that we can continue to satisfy our customers and grow the business."We have a tremendous leadership team driving the major changes needed to turnaround KFC in the U.S., including last year's successful introduction of Kentucky Grilled Chicken, which will generate nearly $1 billion in sales in its first year."
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