Yum Brands, the parent company of KFC, Taco Bell, and Pizza Hut, is betting big on a saucy new concept to revitalize its sales. Next week, the fast-food giant will launch a hot pink KFC spinoff called Saucy, focusing on one key element: sauces.
Customers can choose from 11 different sauces, including five variations of ranch, to pair with crispy chicken tenders. The first location will open in Orlando, with plans for more sites to follow. This move is part of Yum’s broader strategy to address the recent sales slump at some of its flagship brands.
KFC Struggles, Taco Bell Thrives
Yum Brands’ latest financial report showed a 5% decline in KFC’s same-store sales in the U.S. for the most recent quarter, marking the third consecutive quarter of falling sales for the fried chicken chain. Pizza Hut also saw a dip in sales, while Taco Bell continued its growth, reinforcing its position as the strongest brand in Yum’s portfolio.
The Price Squeeze on Fast Food
Rising prices have left many fast-food customers frustrated, pushing major chains like McDonald’s and Burger King to launch promotions and new menu items in a bid to attract more diners.
Chicken Takes Center Stage
At first glance, Saucy may seem like just another place to enjoy different sauces, but it also marks a fresh way to capitalize on the growing popularity of chicken in fast food. Chicken-based menu items have seen an 11% increase since 2019, with more fast-food chains adding poultry options to their menus. McDonald’s has even introduced a Chicken Big Mac, and Applebee’s now offers the Big Cluckin’ Chicken Sandwich. Competitors like Wendy’s and Shake Shack are in a fierce battle for dominance in the chicken sandwich wars.
Chicken’s Growing Appeal
While health concerns about red meat are likely contributing to the rise in chicken consumption, the price difference is perhaps the biggest factor. Last month, the price of whole chickens averaged $2 per pound, compared to $5.63 per pound for ground beef. This price gap, coupled with a U.S. cattle shortage and rising beef prices, has made chicken an increasingly attractive option for consumers.
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