KFC, On the Border, Domino’s
KFC unveils new menu innovations amid struggling sales for chain restaurants.
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KFC announced a series of updates including new menu offerings and modernized restaurants, starting in the UK and expanding globally, aiming to redefine its presence in a competitive market. On the Border has shuttered most of its locations, leaving just five U.S. restaurants after rapid contraction. Meanwhile, Domino's has introduced a new promotional offer to strengthen its competitive stance in the pizza segment during the FIFA World Cup.
Why It Matters
KFC's innovations may enhance its unit economics by attracting new customers, while On the Border's closures could signal potential territory availability in the Mexican dining segment.
In recent developments in the restaurant franchise sector, KFC, On the Border, and Domino’s have announced significant changes that reflect evolving business strategies amid a challenging market. KFC is initiating a substantial overhaul, launching new menu items and updating its brand identity. This change will kick off in the UK and Ireland before expanding to Australia and the U.S., with a goal of reaching over 34,000 locations worldwide. CEO Scott Mezvinsky highlighted that this transformation aims to position KFC as a leader in a competitive chicken market, introducing innovations like the “Dunked” menu featuring a variety of sauced tenders, wings, and sandwiches, alongside a focus on its beverage platform, Kwench.
Conversely, On the Border has made a drastic move by closing all but five of its company-owned restaurants in the U.S., reducing its footprint from 120 locations just a year ago. This closure follows its acquisition by Pappas Restaurants, which is now considering strategic options for the brand. The rapid downsizing raises concerns regarding its viability in the competitive casual dining space.
