Although KFC led the effort to show that co-branding increased unit sales, Yum recently announced that its chicken concept would no longer be partnered with other brands until KFC's sales improved. According to this article from the Louisville Courier Journal, KFC has experienced same store sales declines for the last two years and expects another 1-2% drop for 2004. The company cited increased competition and what it called "self-inflicted wounds" as reasons for faltering sales. In revamping the system without the co-branding model, KFC plans to fashion its 2005 marketing after successful campaigns for its sister companies, Taco Bell and Pizza Hut, to achieve growth in same stores sales next year.
Posted by franchiselawblog at December 8, 2004 01:00 PM