KFC has unveiled plans to create 7,000 new jobs in the UK and Ireland over the next five years, investing nearly £1.5 billion to expand its restaurant footprint. This announcement comes as the fast-food chicken market becomes increasingly competitive, with brands like Wingstop and Popeyes gaining market presence.
Expansion Plans
The fried chicken giant intends to invest approximately £500 million in the establishment of 500 new locations, alongside renovations of existing restaurants. KFC currently operates over 1,000 outlets across the UK and Ireland, most of which are run by franchisees. This move underscores its commitment to maintaining its position as the leading fried chicken chain in Britain, amidst threats from growing rivals.
Consumers in the UK and Ireland contribute billions to the fried chicken market every year, making it a lucrative sector. Market research firm Kantar reports that Britons spent around £2.8 billion on fried chicken from fast-food outlets within the year ending in April.
Competitive Landscape
KFC’s decision to expand is partly driven by the increasing popularity of competitors. Brands like America’s Wingstop and Popeyes are intensifying their presence. Last December, Wingstop sold its UK franchise operations for £400 million and is set to open an additional 20 locations. Popeyes has also surged in growth, recently establishing 33 new outlets and now boasting a total of 65 locations across the UK and Ireland.
The competitive landscape is additionally underscored by the emergence of other brands such as Dave’s Hot Chicken, backed by high-profile figures including rapper Drake. The US-based chain opened its first UK restaurant last year and plans to launch 60 more across the region.
Recruitment Outlook
Rob Swain, General Manager of KFC UK and Ireland, expressed confidence in the recruitment plans, noting that fast food jobs are a popular choice for younger individuals seeking entry-level employment. However, he acknowledged the challenges posed by rising employment costs. As of April, the UK saw an increase in the National Minimum Wage for younger workers and the National Living Wage for those over 21, alongside a rise in National Insurance Contributions for employers.
Despite these challenges, KFC receives approximately half a million job applications annually and promotes around 2,000 staff members into management positions each year. Swain indicated that while the current landscape in hiring is competitive, there is a sufficient applicant pool to meet the company’s expansion needs.
Contexto Económico
While KFC’s expansion reflects optimism within the fast-food sector, the backdrop of rising joblessness among youth remains a concern. According to the Office for National Statistics, approximately 923,000 individuals aged 16 to 24 were classified as “not in education, employment or training” (NEET) between January and March 2023. This statistic highlights a persistent challenge, though the percentage of NEETs has shown signs of improvement.
Looking ahead, KFC’s growth strategy highlights its dedication to adapting and thriving in an evolving market while contributing to job creation in the UK and Ireland. The company is poised to leverage its brand strength and existing customer loyalty as it addresses the competitive pressures from new entrants in the fried chicken space.
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