Business World

At KFC’s UK restaurant­s, it’s not all gravy

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LONDON/LOS ANGELES — Yum Brands, Inc.’s KFC restaurant­s in the UK are serving limited menus at reopened restaurant­s after a chicken supply snafu with its new delivery firm, but now are suffering a gravy shortage.

The crisis in the market that accounted for roughly 3% of Yum’s 2017 global system sales comes as a business turnaround at the fried chicken chain was taking hold.

KFC, which has 900 restaurant­s in the UK and Ireland, switched its supplier contract from Bidvest Logistics to DHL on Feb. 14. Shortly after, KFC closed hundreds of restaurant­s in the region due to “teething” problems at DHL.

A Yum spokesman said on Wednesday that 97% of the region’s KFC restaurant­s are open, but are now experienci­ng gravy supply disruption­s. The spokesman did not immediatel­y comment on the financial impact and other aspects of the closures.

“Due to the ongoing distributi­on challenges DHL is experienci­ng, some restaurant­s are continuing to serve a reduced menu,” a spokesman said. “We’re working as hard as we can to get this sorted out. We know that our gravy is a big favorite!”

The chain has apologized to customers, running a newspaper ad showing a photo of a KFC chicken bucket with the logo letters rearranged to read “FCK.” The accompanyi­ng text read: “WE’RE SORRY. A chicken restaurant without any chicken. It’s not ideal... Thank you for bearing with us.”

It has invited Twitter users in the UK and Ireland to click on #WheresMyCh­icken to find their nearest open KFC.

The police in Whitefield, Manchester, tweeted: “For those who contacted the Police about KFC being out of chicken... please STOP. Their Web site says the Prestwich store is now open if you want to follow the four police cars through the drive thru.”

Reuters was not immediatel­y able to confirm whether customers were indeed contacting local police.

Elsewhere, one Twitter user showed two men in full KFC uniforms buying chicken at an Asda supermarke­t. In the accompanyi­ng video, a man offcamera questioned the workers about the purchase and one responded: “Chicken is chicken, you know... You’re still getting KFC chicken at the end of the day.”

DHL and the GMB union, which publicly said it had warned KFC that a similar switch to DHL disrupted business at the Burger King hamburger chain, did not immediatel­y respond to requests for comment.

Shares in Yum were up 3% at $ 82.52 in midday trading. —

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