trustyG:
Na wa o! We are in RECEPTION indeed.

RECESSION indeed..

math2001:
They are shifting down because you look at ambode cabinet, only 13 of 37 is a Yoruba person,

24 are not Yoruba. It mean they are stealing from the money and sending it to their own state, that why the law talk about state of origin.

It means 65% of the budget of Lagos is stolen by ambode cabinet. Because his cabinet has 64% non Yoruba. So they steal 65% of the money

Fake News. Search the internet you will find list of Ambode's cabinet. Don't use fake news to make whichever point you want to make.

Na wa o! We are in RECEPTION indeed.

Na wa o! We are in RECEPTION indeed.
@ SMH @ D BOLDED

Yomieluv:
Buhari is a failure personified.

Those eateries are overrated mehn!, they charge exhorbitantly over giving over-processed food that's not even healthy for the body system when consumed much. This would give way to our standard local restaurant to grow anyway.

When we tell them, they will tell you, people stole money.

The purchasing power of majority of people living close to these KFC is low. I expected them to strategize by creating meal packages that suit the majority of people in their vicinity. About 60% of Nigerians live below poverty line $2 a day, yet the average KFC meal is way above that price n the irony is that the numbers is what makes them money.

saintdennis:


Even in a buoyant economy, franchises fold up.

If KFC couldn't compete favourably it's not due to the recession... even mr biggs as at 2010 really a took a hit due to low patronage (it was perceived as an old school coy)

Blame the company mngt, like the report states other fast food chains are 'expanding' operations.

You also read where it's clearly stated they'll keep running outlets at shopping malls...shows u d direction the coy is headed.

are you sure you are in this country?

krisllins:

are you sure you are in this country?

this is about a fast food franchise using the economy as an excuse for very poor business outcomes...


The report was thorough, others are expanding operations, so the question is why is KFC performing badly?

We are all in this recession together bro lols things are hard.

But man must adapt na

quentin06:
Another evidence that we need to patronize our indigenous food vendors.

Whats wrong with mama cass, M Biggs, Kilimanjaro and the likes, does KFC do eba ,amala and ewedu.

I can't believe that people are sheeding tears because of KFC, like they ve not seen chicken before.

Tirii gbosa for you.

Some people still don't understand the workings of the restaurant business. Places like KFC and Domino's is where you eat occasionally while places like The place, sweet sensation, Kilimanjaro, Mega chicken et al is where you walk up to any time to eat a meal. Ultimately, the former would struggle with sales during the week and make money at weekends and festive periods.

Over time, this affects the break even time coupled with high operational cost. If you must know, it's actually cheaper running a restaurant at a mall, Airport or a location where facilities are shared. Despite the high cost of rent and service charges, business with exceptional products stand out as they'll always have repeat patronage from old customers as well as referrals which is what makes them survive.

Yomieluv:
Buhari is a failure personified.

You are foolishness personified.

The place and other outlets are booming!
Bukas are booming!

KFC should modify its menu.
The ones closing down have lousy menu that cater for less than 5% of the population

SalamRushdie:
Next stop dominoes pizza and cold stone creamery ....Sarrki Good morning bro ..how are you today boss

foreign sugar and fat

KFC is closing down some outlets when the likes of Sweet Sensation, Domino, Debonair Pizza and the likes are expanding.

Reason!
You cannot maintain the same processes, systems and strategies in all your markets and not lose out some key stakeholders and players, understand the UNIQUENESS in every market and play to their gallery while still maintaining international standards.

THINK GLOBAL BUT ACT LOCAL.

©Ayobami 2017

saintdennis:
Even in a buoyant economy, franchises fold up.

If KFC couldn't compete favourably it's not due to the recession... even mr biggs as at 2010 really a took a hit due to low patronage (it was perceived as an old school coy)

Blame the company mngt, like the report states other fast food chains are 'expanding' operations.

You also read where it's clearly stated they'll keep running outlets at shopping malls...shows u d direction the coy is headed.

You are right. My guess is this - combination of high rents, high food prices, poor procurement practices, high inventory, high energy costs, poor management practices, lots of wastage and loopholes, and maybe high fees paid to the Indian expatriates that manage some of their branches, contributed to their demise, not to mention high tax rates. Our local and state govts tax anything taxable, in their guise of making revenue.

They should have looked for experts to turn around their business and plug the loopholes, before they decided to close down their outlets.

Tantalizers & Tastee Fried Chicken (i.e. two of their competitors) took a decision to change their model of rental operations a few years ago. Now, they use beautifully designed 20ft and 40ft containers that have been converted to mini cafeterias, as outlets. They put them in petrol stations, close to universities, markets and other areas with high human traffic, unlike KFC that likes to open outlets in high-priced malls and expensive low density areas. It is much cheaper for them, as these containers cost less than the annual rent in some of these high-priced malls. Rent per square metre in a lot of these malls are really exorbitant.

Some other fast food outlets are now more focused on the 'take-away' model, where people just buy their pre-packaged food in packs, and take it home or to their offices to eat. That way, the amount of space required to house their operations & customers, is reduced. Amount of energy for cooling their food court, also drops as waiting/seating time spent by customers in their premises, goes down.

gabicon:
The purchasing power of majority of people living close to these KFC is low. I expected them to strategize by creating meal packages that suit the majority of people in their vicinity. About 60% of Nigerians live below poverty line $2 a day, yet the average KFC meal is way above that price n the irony is that the numbers is what makes them money.

You got that right! Chicken Republic offers a combo meal that is less than 1,000 naira in most of its outlets. This attracts people at the lower end of the spectrum, especially when they want to give themselves a treat at end of the month. I am not a fan of their meals, as their chicken is way too spicy for me, but it seems to work for them.

Just spoke to someone working at KFC outlet at Ikeja Under Bridge. They are not closing down there so the story is not accurate.

UjSizzle:

Fellowship

Through service

instead of folding up make them reduce their prices,honestly people will patronize them more.

When I passed by some eateries last week. The places were empty, security men looking dry and sleepy. I knew something was up.

Country don hard.

Na to soak garri do birthday remain.

manikspears:
[/b]instead of folding up make them reduce their prices[b],honestly people will patronize them more.

........ Including the cost of diesel.

laudate:


You are right. My guess is this - combination of high rents, high food prices, poor procurement practices, high inventory, high energy costs, poor management practices, lots of wastage and loopholes, and maybe high fees paid to the Indian expatriates that manage some of their branches, contributed to their demise, not to mention high tax rates. Our local and state govts tax anything taxable, in their guise of making revenue.

They should have looked for experts to turn around their business and plug the loopholes, before they decided to close down their outlets.

Tantalizers & Tastee Fried Chicken (i.e. two of their competitors) took a decision to change their model of rental operations a few years ago. Now, they use beautifully designed 20ft and 40ft containers that have been converted to mini cafeterias, as outlets. They put them in petrol stations, close to universities, markets and other areas with high human traffic, unlike KFC that likes to open outlets in high-priced malls and expensive low density areas. It is much cheaper for them, as these containers cost less than the annual rent in some of these high-priced malls. Rent per square metre in a lot of these malls are really exorbitant.

Some other fast food outlets are now more focused on the 'take-away' model, where people just buy their pre-packaged food in packs, and take it home or to their offices to eat. That way, the amount of space required to house their operations & customers, is reduced. Amount of energy for cooling their food court, also drops as waiting/seating time spent by customers in their premises, goes down.



You got that right! Chicken Republic offers a combo meal that is less than 1,000 naira in most of its outlets. This attracts people at the lower end of the spectrum, especially when they want to give themselves a treat at end of the month. I am not a fan of their meals, as their chicken is way too spicy for me, but it seems to work for them.

I love your analysis.

Gerrard59:
........ Including the cost of diesel.

I love your analysis.

Thanks. You are very right about the high cost of diesel having an impact on their revenue and cost of operations. I mentioned high energy costs earlier, too.

I have never liked this KFC....they prepare rubbish and fix high prices just to eat lil bullshit....d company shud go to hell!....mama put ti take over!!...