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fast food business-kenchic
gold
#1 Posted : Monday, February 05, 2018 6:11:20 PM
Rank: Hello


Joined: 2/5/2018
Posts: 1
Hi. Why did Kenchic fail in their fast food business and yet other international brands are opening shop right left and center? Their prices were way better than what the international players are offering. They also had the financial muscle ( i think) and had a dominance in the fast food business. What really happened? did our tastes and preference change? did they fail to adapt to this quick enough?
Swenani
#2 Posted : Monday, February 05, 2018 6:35:33 PM
Rank: User


Joined: 8/15/2013
Posts: 12,510
Location: Vacuum
gold wrote:
Hi. Why did Kenchic fail in their fast food business and yet other international brands are opening shop right left and center? Their prices were way better than what the international players are offering. They also had the financial muscle ( i think) and had a dominance in the fast food business. What really happened? did our tastes and preference change? did they fail to adapt to this quick enough?

They were unable to guarantee/enforce quality on franchise holders
Marry a woman who can cook or a man who can provide food.Don't marry for love or beauty, because love dies,beauty fades but hunger stays
Chaka
#3 Posted : Wednesday, February 07, 2018 10:32:42 AM
Rank: Veteran


Joined: 2/16/2007
Posts: 1,960
If I recall,some franchise holders were getting the broilers from elsewhere i/o Kenchic as per agreement..

[/quote]
They were unable to guarantee/enforce quality on franchise holders
[/quote]
kawi254
#4 Posted : Wednesday, February 07, 2018 11:53:01 AM
Rank: Member


Joined: 2/20/2015
Posts: 213
Location: Nairobi
Swenani wrote:
gold wrote:
Hi. Why did Kenchic fail in their fast food business and yet other international brands are opening shop right left and center? Their prices were way better than what the international players are offering. They also had the financial muscle ( i think) and had a dominance in the fast food business. What really happened? did our tastes and preference change? did they fail to adapt to this quick enough?

They were unable to guarantee/enforce quality on franchise holders



Kenchic is focusing on big business i.e supplying chicken to KFC Kenya &Uganda and other multi-national fast food business that have setup in Kenya. They so no need of competing with their largest Customers (i.e KFC). They are also big on day old chicks. I believe the margins are bigger on selling day old chicks and supplying to KFC and others.
Swenani
#5 Posted : Wednesday, February 07, 2018 4:18:54 PM
Rank: User


Joined: 8/15/2013
Posts: 12,510
Location: Vacuum
kawi254 wrote:
Swenani wrote:
gold wrote:
Hi. Why did Kenchic fail in their fast food business and yet other international brands are opening shop right left and center? Their prices were way better than what the international players are offering. They also had the financial muscle ( i think) and had a dominance in the fast food business. What really happened? did our tastes and preference change? did they fail to adapt to this quick enough?

They were unable to guarantee/enforce quality on franchise holders



Kenchic is focusing on big business i.e supplying chicken to KFC Kenya &Uganda and other multi-national fast food business that have setup in Kenya. They so no need of competing with their largest Customers (i.e KFC). They are also big on day old chicks. I believe the margins are bigger on selling day old chicks and supplying to KFC and others.


Quote:
Kenchic, in a statement to its franchisees, said it had decided to exit the agreement “due to Kenya’s rapidly evolving local fast food market”.
International fast-food chains such as Kentucky Fried Chicken (KFC), Subway and Pizza Hut have recently opened shop in Kenya, offering an expanded market for Kenchic whose core business is to hatch and sell chicken.
The franchisees are accused of disregarding quality standards at their restaurants, which Kenchic feared would impact negatively on its brand and possibly hurt its sales.
“Effective March 31, Kenchic will discontinue the use of the brand Kenchic Inn,” Philip Carolan, Kenchic’s processing and sales distribution operations manager said in the letter.
“At the end of the period, the Kenchic Inn brand will no longer be used nor will any of the Kenchic-associated logo’s brands or colours.”

Marry a woman who can cook or a man who can provide food.Don't marry for love or beauty, because love dies,beauty fades but hunger stays
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