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Delivery troubles hurt KFC bottom line

Fast-food chain KFC has revealed the impact its distribution crisis had on the company’s profits in its latest financial results.

The group said that same-store sales growth over the whole of 2018 fell -6.8%, compared with growth of 3.8% the year before as a result of the shortage of chicken brought about by switching its delivery company.

On 14 February 2018, the firm introduced two new distribution partners, QSL and DHL. Widespread supply issues resulted, with stores having to close or offer a limited menu for weeks afterwards.

But KFC said it recovered transactions, and by the year-end had returned to positive sales growth.

Overall sales were down to £207m, compared with £445m the year before, and pre-tax profits were £138m, compared with £186m in the previous period.