Popeyes Louisiana Kitchen Inc., also referred to as Popeyes, is an American chain of fried hen fast-food eating places that was based by Alvin C. Copeland Sr. in New Orleans in 1972. What began with one small restaurant has now swept america and the remainder of the world with its sensational style from the corporate’s 3,400 areas worldwide.
But it surely wasn’t a easy crusing journey proper from the start. Founder Copeland really began with a donut enterprise however determined to shift to fast-food hen when KFC first opened its retailer in New Orleans. Initially, Copeland named his hen enterprise “Hen on the run” however needed to shut it down when it wasn’t producing sufficient gross sales and attracting clients in any respect. Afterward, he re-opened the enterprise together with a brand new recipe by including a novel mix of spices to the combination.
At the moment, Popeyes has stood its floor as a good and well-loved fried hen fast-food chain, boasting $143 million income within the third quarter of 2021, up by 1.2% from the prior-year quarter.
To reply the query, ‘Popeyes VS KFC: Who’s successful?’, let’s check out Popeyes SWOT evaluation and see the place the model is missing and has helped the corporate acquire market share over the past 24 months. I additionally share my concepts on what administration can do to enhance enterprise efficiency even additional.
SWOT Evaluation:
Strengths
Popeyes is thought for fried hen.
Constructing the model to the place it’s at this time isn’t any simple feat. However what makes Popeyes one of many well-known fried hen fast-food chains not simply within the US however in the remainder of the world is the corporate’s consistency in providing high quality services and products to its clients.
Product high quality and innovation – Quick-food chains usually compromise high quality to make sure quicker service however not Popeyes that prioritizes high quality over the whole lot else. That is evident of their meal prep course of as they marinate hen for 12 hours with a novel mix of seasonings. The identical will be stated with the Popeyes Hen Sandwich that resulted in lengthy strains and offered out inventories.
International enlargement – Popeyes is aware of the trail to progress is thru enlargement. After opening shops in Brazil, Spain, and different international locations in Europe and South America, Popeyes opened its flagship retailer in Shanghai, China, on the peak of the worldwide well being disaster.
Their China debut marked their most profitable grand opening but as clients waited exterior in line to come up with their hen and hen sandwich. They plan to open over 1,500 eating places in China over the following decade.
Digital concentrate on the cell app and supply channels – To cater to the youthful clients and proceed the model’s innovation, Popeyes launched its first loyalty program referred to as Popeyes Rewards. This system goals to drive extra clients by providing unique offers and an opportunity to earn and redeem factors utilizing the Popeyes app.
Because the launch of the app, the corporate’s digital gross sales accounted for 17% of the full gross sales within the US within the first quarter of 2021. Beginning 2018, Popeyes provides supply by means of Uber Eats which reported that orders for fried hen elevated by 54% over the previous yr.
Weaknesses
Whether or not you reside within the East or West… Everybody loves fried hen.
Whereas it’d really feel like Popeyes is firing on all cylinders there are some uncovered flanks.
Weak on-line presence on social media – At the present time, having a social media presence is essential for any enterprise. With Popeyes, they haven’t gotten the hold of it simply but. With lower than 1,000,000 followers on Fb as in comparison with over 57 million KFC followers, we all know fairly nicely Popeyes isn’t doing a lot within the digital world. The identical is true with their Twitter account with simply over 250,000 followers whereas KFC has 1.5 million of its personal.
Franchises are largely at gasoline stations – Contemplating Popeyes shouldn’t be a startup firm, you’d anticipate greater than having franchises which are largely at gasoline stations. Not solely does this imply there’s much less buyer site visitors but additionally the truth that there aren’t sufficient clients who’re prepared to purchase and dine at correct retailer areas. This may additionally paint a unfavourable impression of the model provided that it’s been round for years but we’re seeing that franchises don’t appear to be doing in addition to they may very well be.
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Retailer areas are extremely concentrated within the South – Given the restaurant chain originated within the South, analysts discover how most of Popeyes retailer areas are extremely concentrated within the South space (Tennessee and Louisiana). The corporate nonetheless has loads of work forward of them to win over clients within the Midwest.
Unhealthy customer support – They could have targeted an excessive amount of on product high quality and have made a reputation off it, however Popeyes must get their act collectively on the subject of their customer support. Again in 2016, Popeyes lastly admitted their customer support sucks. This admission got here after fixed complaints on social media from very dissatisfied clients.
Restricted menu selection – Whereas Popeyes’ hen sandwich made a huge effect on clients and turned the fast-food phenomenon in 2019 because it continues to do till at this time there have been loads of complaints relating to the model’s lack of different meals choices. Additional menu innovation and exploration is suggested for this restaurant.
Alternatives
May deep fried hen strips be a possibility for this chain?
Popeyes has the potential to develop additional and increase deeper into completely different markets.
Introduce a wholesome menu choices – In line with the Worldwide Meals Data Council’s survey, 85% of People have modified their weight-reduction plan or the way in which they put together their meals through the pandemic. For a quick-food chain like Popeyes, a method they will entice extra clients is by introducing a handful of wholesome menu objects.
Use Popeye the sailor man to boost the model picture – Popeye the sailor man is a fictional character that made its debut within the day by day King Options sketch referred to as Thimble Theatre on January 17, 1929, which afterward additionally appeared in theatrical and tv animated cartoons. Given Popeye’s recognition and having the identical title as Popeyes Louisiana Kitchen, it could give the fast-food chain a lift of their model picture in the event that they used Popeye the sailor man as a part of their branding and advertising efforts.
Entry into the rising Asian markets – As an American model, it’s not all the time simple to increase internationally the place style preferences and consuming habits will be very completely different. However this doesn’t imply one shouldn’t even attempt to make a transfer. After Popeyes’ profitable launch in China, the corporate ought to attempt to additional deepen its footprint and proceed opening its shops in additional Asian markets corresponding to Singapore, Malaysia, Hong Kong, and the Philippines.
Threats
It’s sensible for companies to grasp the menace to their enterprise mannequin. This helps administration put together for adjustments in market dynamics.
Rising value of components – If there was one constant menace that all the time hit eating places, it’s the rising value of components. Restaurant homeowners have accepted the truth that there’ll all the time be an increase in the price of components however with the pandemic hitting laborious and prompted a wide range of provide chain points, even large fast-food chains like Popeyes are dealing with a troublesome time coping with it. The one means out is that if Popeyes can both lower prices or go these bills onto the shopper by means of menu worth will increase.
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Extremely aggressive business – With over 200,000 fast-food eating places within the US, saying that the competitors on this business is hard is an understatement. Plus the truth that Popeyes’ direct competitors consists of KFC, McDonald’s and Burger King – a number of the nation’s main world fast-food chains. Consistency in product high quality and repair ought to stay as Popeyes’ fundamental precedence in the event that they need to proceed swimming ahead and never simply treading water.
Rising well being acutely aware people – Weight problems has lengthy been thought of a significant well being difficulty in America the place 42.5% of adults aged 20 and over are affected by weight problems. This opened the eyes of many people who’re beginning to rethink the gas they put into their our bodies. As a well-liked fast-food chain, it could be troublesome for Popeyes to maintain attracting clients if a giant share of their target market are beginning to eat wholesome or are well being acutely aware.
Popeyes VS KFC: Who’s successful?
What hen restaurant do you like?
Now that we’ve taken a take a look at Popeyes’s SWOT evaluation, let’s return to the query of who’s successful between Popeyes and KFC? With each fast-food chains being two of the nation’s well-loved within the business and every having their very own share of devoted followers by means of the years, it is likely to be troublesome to know who precisely is successful with out wanting on the chilly laborious numbers.
When it comes to the variety of retailer areas, it’s a landslide win with KFC’s 3,984 areas within the US solely, plus 5,200 shops in China versus Popeyes’ 3,400 areas worldwide. On condition that KFC has extra areas within the nation and worldwide, one can assume that KFC would generate extra income than Popeyes. So how a lot is it precisely?
It’s reported that in 2020, KFC was valued at $5.4 billion whereas Popeyes’ income within the 3rd quarter of 2021 is $143 million, up 1.2% from the earlier yr.
Now, let’s discuss an important factor – the meals. Each Popeyes and KFC serve comparable merchandise like fried hen, hen tenders, fries, mashed potatoes, biscuits and extra. However who has higher meals? Is KFC successful with their years of expertise and confirmed secret mix of herbs? Or is Popeyes on the lead with their further crunchy, delicate and spicy hen choices?
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Followers say that Popeyes is successful on the subject of crunch and it leveled up much more because of KFC hen’s dryness. Some individuals additionally shared that on the subject of slides, Popeyes is on the lead. However I feel that on the subject of style, it’s just about private desire as one would debate KFC has higher meals in the event that they don’t actually just like the Cajun strategy from Popeyes or vice versa, somebody saying that Popeyes has leveled up the fried hen strategy with their further crisp and taste.
I feel we will all agree that the controversy between the perfect fried hen chain will proceed to rage on for the foreseeable future. One factor is for positive, Popeyes nonetheless has loads of progress potential.
Having seven occasions much less retailer areas as KFC however gaining over $100 million in income final yr, Popeyes clearly is aware of what they’re doing and in the event that they concentrate on enhancing their customer support which has been extremely criticized for years. The hen chain appears poised to make a fortune within the years, particularly if they will replicate the discharge of their now well-known hen sandwich that took American’s style buds by storm in 2019.
