KFC, the traditional incumbent in the fast-food industry, is busy closing down bankrupted stores currently. On the contrary, Popeyes is embarking on an aggressive expansion plan, opening new stores and even buying former bankrupted KFC restaurants. Their respective competitive strategies and operational effectiveness play a key role here.
KFC, although still drastically outnumber Popeyes in terms of number of stores both domestically and internationally, is lagging behind the competition due to old menus and many uninviting stores in poor locations. Because of its mega scale of business, managing all stores equally well is proven to be logistically difficult. Popeyes, however, is equipped with menu innovation, more widespread media promotions and improved relationships with its franchisees, contributing to store renovation efforts. Also, Popeyes does not offer salads in an attempt to follow the health-conscious trend, unlike KFC and many other fast-food restaurants. Personally I think it is a brilliant move as it allows Popeyes to stand out and focus more on its flagship fried chicken.
In all, Popeyes’s resurgence and KFC’s decline are a testament that leading companies need to vigilantly watch over their businesses while actively engaging in innovation and improving operational effectiveness. Otherwise, they will risk of being overtaken by strong rivals.
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