Bidvest crows with KFC back in nest
● KFC has switched the supply of 350 of its UK restaurants back to its original distributor, after a move to the German logistics group DHL last month prompted a chicken shortage at the fast-food group’s outlets that ruffled British customers’ feathers.
The fried-chicken chain said this week it had inked a new long-term supply agreement for more than a third of its UK restaurants with Bidvest, the delivery company that used to supply it before KFC overhauled its British supply chain last year, awarding the contract to DHL.
Last month, Yum Brands-owned KFC was forced to temporarily shut hundreds of its 900 UK restaurants after “operational issues” at DHL left a backlog of chicken at the delivery group’s sole UK warehouse in Warwickshire.
That led to a shortage of the chain’s key ingredient — as well as other menu items such as fries and coleslaw — and prompted questions as to why it had tried to implement the change to a new supplier with a single, new and untested distribution centre without better contingency plans in place.
A KFC spokesperson said the chain had been “working hard to resolve the present situation” with DHL and its logistics technology provider, QSL.
But the spokesperson said a decision had been taken “in conjunction with QSL and DHL to revert the distribution contract for up to 350 of our restaurants in the north of the UK back to Bidvest Logistics”, to avoid further disruption.
Bidvest Logistics confirmed it would “provide renewed supply” to KFC for the restaurants from March 26.
Bidvest’s Paul Whyte said: “We are delighted to welcome KFC back to Bidvest Logistics. As the UK’s leading food service logistics specialist we understand the complexities of delivering fresh chicken. KFC is a valued customer and we will provide them with a seamless return to our network.”
The KFC spokesperson said the company would continue to operate with QSL and DHL for the remainder of its restaurants in the country. “We’ve been working hard to resolve the present situation with QSL and DHL. This decision will ease pressure at DHL’s Rugby depot, to help get our restaurants back to normal as quickly as possible.
“As it stands, over 97% of our 900 restaurants are now open for business, although there will be some limited menus before we are back to business as usual.”
DHL acknowledged KFC’s move. A spokesperson said that, together with its partners, it remained “fully committed to delivering excellent service to KFC’s remaining 550 restaurants across the UK”.
Financial Times
We understand the complexities of delivering fresh chicken Paul Whyte Bidvest Logistics