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Shining a light on PE ownership.

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KF

KFC

restaurants
PE-OWNED

Fast food chicken restaurant chain known for fried chicken and the Colonel's secret recipe.

PE-OWNED

Acquired by KKR1986-10-01

View PE Firm Profile

What Made It Great

“

Original recipe fried chicken with global brand recognition and secret spice blend

What PE Will Likely Do

Predictions

Portion sizes for KFC menu items will be reduced while prices remain the same or increase

HIGH LIKELIHOODBased on: KKR's track record of cost-cutting and brand management tactics in other acquisitions

KFC will substitute cheaper, lower-quality ingredients in their signature fried chicken and side dishes

HIGH LIKELIHOODBased on: The typical playbook used by private equity firms in the restaurant industry, including portion reduction, ingredient substitution, franchise squeeze, and menu engineering

KFC will increase fees and requirements for franchisees, leading to store closures and a smaller national footprint

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36, indicating that KKR's tactics are likely to be harmful to the customer experience

KFC will reduce the variety of menu items, focusing only on their highest-margin products

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36, indicating that KKR's tactics are likely to be harmful to the customer experience

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Minor changes to portion sizes and menu pricing begin, with some ingredient substitutions

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Noticeable reduction in portion sizes and quality decline in fried chicken, coleslaw, and other menu items

12-24 months

“12 to 24 months months”

Regular customers start noticing significant quality decline in the signature fried chicken and side dishes, with fewer menu options available

24-36 months

“24 to 36 months months”

Store closures accelerate as franchisees struggle with increased fees, leading to a damaged brand reputation and decreased national presence

Similar Cases

Other companies that followed a similar path after PE acquisition

Operating

TGI Friday's

Sentinel Capital Partners·2014

See full case study
Operating

P.F. Chang's

Centerbridge Partners·2019

See full case study
Operating

Outback Steakhouse

Bain Capital·2007

See full case study
Operating

Logan's Roadhouse

KKR·2006

See full case study
Operating

Friendly's

Sun Capital Partners·2007

See full case study

What You Can Do

Take Action

Actions

  • Expect to pay the same or more for smaller portions of KFC's signature fried chicken and side dishes

  • Be prepared for a noticeable decline in the quality and taste of KFC's menu items as they substitute cheaper ingredients

  • Consider supporting local, independent chicken restaurants that prioritize quality and customer experience over cost-cutting

Alternatives

Darden Restaurants (Olive Garden, LongHorn)SAFE

Publicly traded restaurant group

Local independent restaurantsSAFE

Support local businesses in your area

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"KFC is now PE-owned. Here's what that means for you."