NCAC Report

STAYING STRONG IN 2021 AND BEYOND

By Tom Broome, NCAC Vice Chair

In my last article, I said that 2021 promises to be interesting, and it has been every bit of that and more. We have seen many change across the country and in our own businesses. If 2020 and the first half of 2021 have taught us anything at all, it is that change is the “new normal.”

Much already has happened this year. We launched our new Chicken Sandwich with tremendous success, thanks to each of you and your teams! The KFC Marketing and Food Innovation teams did such an incredible job with this delicious sandwich, drawing more customers to our restaurants and increasing trial and frequency. The results were so good that we had to temper our marketing efforts as we faced industry-wide chicken supply challenges. You have done a phenomenal job of keeping up with the fast-paced, supply-related changes to our marketing efforts. Hopefully, we all will see relief on both the chicken and labor fronts as we finish out the summer and the year.

We also have seen a dramatic change in how consumers are engaging with KFC, specifically in the social and digital space. Before this year, I could not really tell you what TikTok was — now I know that it is basically a digital talent show for everyday people. KFC Marketing and our agency partners are working with some big KFC fans. For example, Lili Hayes (known as TikTok’s Grumpy Grandma) repeatedly asks “Do you like chicken” and shows off our sandwiches while dressed as the Colonel. There have been KFC chicken songs, and our Nashville Hot Chicken Tenders rose to their own fame as one video alone was viewed over 21 million times! We all should appreciate the continued focus on keeping KFC relevant and engaging for our consumers who keep us top-of-mind.

As our local communities and the country emerge from the pandemic, and as COVID-19 restrictions are lifted, our sales continue to remain strong. With the supply-related challenges, we have had to make changes in our TV and digital media approach. As a result, we will see heavier year-end media spending as we look to restart our sandwich promotion along with high-end promotions of COB, beverages, and sides. Once we have a steady tenders supply, we can look to promote them as well. Thanks to the work of KFC Marketing, our agency partners, and our Marketing Subcommittee, our “war chest” of funds remains full. We will be ready to go out loud and strong when supply pressures ease. We WILL remain competitive and keep the love for KFC going strong. Last year, our beverage business took a big hit, as we sold fewer lowend meals and combos. With beverages playing such an important role in what we offer our customers, we have brought back an official Beverage Subcommittee. Joan Bowling is leading that subcommittee that

The KFC Marketing and Food Innovation teams did such an incredible job with this delicious sandwich, drawing more customers to our restaurants and increasing trial and frequency.

includes strong franchise family representation (longtime beverage veteran Kevin Schlutz, Bill Byrd, David Sparks, Justin Stewart, Pete Wasilevich, Jeremy Dimick, Anthony Gianino, and Raziel Valiente), along with KFC Marketing and Pepsi, Dr Pepper, and Tetley partners. By now, you have seen new, refreshed beverage merchandising focusing on Beverage Buckets. The Subcommittee is focused on the marketing and operations side, paying close attention to the competitive landscape and what our customers are telling us they want from KFC. Look forward to more beverage news in the future.

The last bit of change I wanted to mention is our NCAC Executive Director leadership change. Cynthia Koplos officially retires at the end of June; she has left an indelible mark on the KFC Family. Her commitment to partnership, transparency, communication, and overall excellence was shown not only in her leadership of the NCAC office and the team, but in her working relationship with the NCAC Board, franchisees, KFCC teams, agency partners, and the list goes on. She has spent her last few months training Karen Sherman, who has stepped into the role. I look forward to working with Karen and appreciate her partnership and that of the entire NCAC team of Holly (Goode) Winkel, Denise Medlock, Emily Gaddie, and Ron Gardner.

Change is our new normal, but I know the “Power of the People” in this great system has proven that change continues to make us stronger and better. Thank you for your continued support and partnership. n

Before this year, I could not really tell you what TikTok was — now I know that it is basically a digital talent show for everyday people.

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Don Alwood | donald.alwood@welbilt.com | 989-205-6739 welbilt.com