Top 100 partial analysis - KFC Germany

In the first quarter of '21 with 7% increase in turnover

Marco Schepers, General Manager KFC DACH and Denmark, successfully leads the brand through the pandemic.
Marco Schepers, General Manager KFC DACH and Denmark, successfully leads the brand through the pandemic.

Gretel Weiß, publisher of foodservice, annually compiles the Top 100 ranking of the gastro players/brands with the highest turnover in Germany. In this detailed analysis she looks at the Yum! brand KFC in the pandemic year 2020 as well as in Q1 2021. It is about sales and distribution channels, about the outstanding importance of Drive and Delivery.

Measured against the revenues of the 1st quarter of 2020 (predominantly pre-Corona time), the revenues of KFC Germany increased by 7 percent in the months of January to March 2021. An outstanding development far above the average of the complete QSR category, which, according to npd market research, suffered a 12 percent drop in revenues. Yes, besides delivery services, KFC was the only brand among the top 25 QSR chains to manage a sales increase. Central growth channel as expected: the chicken brand's auto counters. Their share of the total volume increased from 20 to 59 percent.

Lots of exciting success details - before that, a look back at the KFC figures in Covid-19 year 2020 (excellent case study in distribution channels and shifts in importance due to Corona).

KFC Germany managed sales of €243.1 million in 2020 at 175 restaurants, 110 of which had Drive. That was only 8.8 percent less on existing space than in the peak year 2019.

KFC Germany: Share of distribution channels in sales.
KFC Germany: Share of distribution channels in sales.

The sales structure before the pandemic:

  • 52% dine-in
  • 30 % take-away
  • 17% drive and
  • 1% Delivery.

Then in the first lockdown.

  • an insignificant 3% dine-in
  • 17% take-away
  • 75% Drive and
  • already 5 % Delivery.

Now the summer and autumn months (without lockdown)

  • Again 33 % Dine-in
  • 28 % Take-away
  • 35 % Drive and
  • 4% Delivery.

So pretty much an even split of the 3 strong distribution channels: Dine-in comes back, Drive drops again a bit.

And now the structure in the 2nd lockdown - i.e. November/December 2020.

  • 0 % Dine in
  • 35 % Take away
  • 57 % Drive and
  • 8% Delivery.

All figures always related to all 175 stores in Germany. So a breathtaking shift from indoors to outdoors - carried by the striking Corona strength of the car counters. In addition, a strong relative growth in the delivery business - partly with its own logistics.

Strong development in 2021

Now for the latest numbers on the overwhelmingly positive performance in Q1 2021 - measured against the same period last year. "We are at a higher level than 12 months ago," said Marco Schepers, General Manager Yum! Restaurants International in Ratingen. Up 7 percent, he says, makes him justifiably proud of the performance community of brand and franchise partners.

In the channel view, one sees once again the force of the auto counter and the outstanding relative development of Delivery:

Channel Q1 2020 Q1 2021 Var. %
Dine-in 50 % 0 % -100 %
Take-Out 29 % 32 % 12 %
Drive-through 20 % 59 % 191 %
Delivery 1 % 8 % 843 %

Average receipt Q1 2020: €11.40
Average receipt Q1 2021: €15.77

Yes, it succeeded in giving people the feeling: The brand is there for them. Is supply solution and experience moment in the hard Corona everyday life. And of course, the Chicken Buckets are perfect for home. For the individual or the whole family. Highly relevant to success: clever offers - daily and on special days of the week. Strongly priced, but not discounted!

Social media for young target group

By the way, 30 percent of all KFC customers are under 20 and 70 percent are under 40, so it's a decidedly young digital clientele.

It also succeeded in reaching new audiences across the full spectrum of social media - Google, Facebook, Instagram, TikTok - a big asset for the coming months/years when the restaurants will be open again with their outdoor and indoor seating capacities.

Schepers then expects overall revenues to be significantly higher than before the pandemic. "Our traditional dine-in business will come back relatively quickly. At the same time, drive will remain strong. And delivery is now generally learned."

What's also learned is that there are a lot of new customers among Delivery customers.

Big challenge in summer 2021 compared to summer 2020: the three Gs make day-to-day operations complex. Healthy. Vaccinated. Tested: Employees have to control all that, too!

In 2021/22, KFC wants to expand significantly again - even with stores completely without dine-in capacity. The brand has gained significant traction in this country during the pandemic. The Yum! group wants to take advantage of this.

Worldwide: With consistently positive numbers in Q1 2021, massive expansion has been announced. Especially in Europe and Asia.