KFC takes a seat at the breakfast table

by Gemma Charles Marketing 13-May-08, 14:11

LONDON - A new era in fast-food retailing was ushered in last week in central London as KFC launched its A.M. breakfast menu. In a radical move, the chicken restaurant chain is planning to take a bite out of the lucrative breakfast market, which, according to Sandelman & Associates, accounts for 10% of all fast-food sales.

KFC's flagship Marble Arch restaurant is the first to introduce the eight-item menu but the plan is to trial it in the  Tyne-Tees region later this year before a full national roll-out takes place in 2009. Beyond that the intention is to take the concept global.

Jennelle Tilling, KFC's vice-president of marketing, describes the development, which has been a year in the planning, as 'the most important thing' for KFC in 2008. The target is to have breakfast contributing up to 15% of total sales, although she concedes it will not be an easy task.

'The average price is lower than the daytime menu so we do need to get quite a lot of traffic through to make money from it, but so far so good,' she says. Upgrading its hot and cold beverages by introducing Lavazza coffee and Tropicana smoothies will go some way toward pushing up ticket prices.

KFC A.M. will primarily be aimed at the 'white van man'. Tilling says the advertising will be based on the message that the breakfast 'sets you up to be a fully charged hero ready to tackle the day ahead' and will take an 'emotional rather than functional' approach.

However, commentators claim KFC faces an uphill task in terms of consumer perception in its quest to be fully accepted as a credible place to have breakfast.

Perhaps inevitably, David Kisilevsky, Burger King vice-president of marketing for EMEA, said he would be 'surprised' if the initiative takes off.

'I believe KFC will struggle to persuade UK customers to accept a breakfast offering - no matter how good the product - from a brand seen as having such strong roots in chicken,' he says. 'I remember Pizza Hut testing a breakfast menu about 10 years ago and it quickly sank without trace.'

After Marketing revealed KFC's plans last week, a number of rivals and interested parties flocked to the launch restaurant.

Penny Harris, senior inventor for innovation agency ?What If!, called in on day two and was impressed by the food, staff attitude and reaction from customers. 'What struck me is that it felt quite natural. People seemed to take it for granted that KFC was open at that time serving breakfast,' she says.

Nonetheless she also questioned its positioning. 'I would like to see KFC communicate a freshness message,' she says. 'The menu offers free-range eggs and smoothies but KFC doesn't seem to want to capitalise on that.'

A challenging task lies ahead but, if KFC does succeed, the burger giants will need to beware that their early-morning customers are not lured away when the initiative goes national. After all, KFC is increasing its number of outlets at a faster rate than either Burger King or McDonald's.

Consumer reaction:

Clara Mbachu

Mbachu, a 34-year-old holidaymaker, enjoyed her A.M. Wrapstar despite the fact she had gone in for chicken and chips. 'I would definitely have it again, I really liked it. I think it's a good idea,' she enthuses. She adds that the staff were very helpful and guided her through the menu.

Joseph Spencer

Spencer's first reaction to his A.M. Riser was 'it's not great' - he found the bun dry. Spencer, a 19-year-old stonemason, says he will 'probably never get it again' but is willing to give other items on the menu a go. He had actually gone in for the chicken which is one of his 'guilty pleasures'.

Judith Martina

Martina, a 22-year-old flight attendant, described her selection, the A.M. Loader, as 'really filling but in a good way'.

'I had it because I was walking past and saw the poster and thought I would try it. I also went in because I like KFC,' she says. She adds that she would have the breakfast again.

Sean Robertson

Bus driver Robertson, 28, is KFC A.M.'s target audience. He says his A.M. Riser was 'a bit dry' and that he prefers McDonald's Bacon & Egg McMuffin, but was keen on the 99p price tag. 'They're known for chicken but once they've done breakfast for a while people will change their minds,' he says.

Comments

mok mok

mok mok - 14/05/2008

i went in and was really impressed by the coffee - as good as at pret and starbucks but a third of the price. My waffle was delicious too - amazing from a fast food joint

 
 
mok mok

mok mok - 14/05/2008

i went in and was really impressed by the coffee - as good as at pret and starbucks but a third of the price. My waffle was delicious too - amazing from a fast food joint

 
 

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