Taking The Chicken Out Of KFC

February 11, 2013 in Daily Bulletin

KFC’s plans to expand into African countries are facing one big hurdle: chickens. Drew Hinshaw writes:

  • Chicken farmers in Ghana don’t meet KFC’s professional standards and so chains are forced to import their chicken from other countries.
  • However Ghana’s currency is depreciating which makes imports more expensive, menu prices higher, and sales lower.
  • To cut costs KFCs in Ghana are encouraging patrons to use shito – a local hot sauce – instead of more expensive imported ketchup.
  • Nigeria doesn’t allow the import of chickens. This has driven Nigerian KFCs to add fish to the menu.
  • Kenya doesn’t allow chicken imports either. There is just one local supplier who meets the chain’s professional standards and they charge a large premium for it.

To read more about the struggles for KFC and what chain owners have to say about it, as well as why developing a professional domestic chicken industry will be difficult for African countries click here.

Source: The Wall Street Journal

Via: Marginal Revolution