Since 1952, KFC has been serving up Colonel Sander’s "finger licken' good" chicken diners to people all over the world. KFC is famous for its Original Recipe® fried chicken. The story goes that the recipe for their famous chicken that is still used today, was created and perfected by Colonel Sanders more than a half century ago.
KFC has grown into an international company that serves more than 12 million customers each day through a network of 22,200 restaurants in 109 countries and territories around the world.
Popeye's entered the market in 1972 and quickly became a favorite for their Louisiana style food. Popeye's distinguishes itself within the fast food franchise industry by having a unique "New Orleans" style menu that features spicy chicken, chicken tenders, fried shrimp and other seafood items. Today the company operates over 2,000 franchises worldwide.
These two companies own a good portion of the market share when it comes to fast food franchises that specialize in this type of food. If you are looking to get into this market, you have to decide between KFC vs. a Popeye’s franchise. So, which fast food franchise is the better investment? In my opinion, it’s Popeye's.
KFC’s Financial Troubles
In 2012, KFC was dealt a financial blow when it lost 29 of its franchise locations in the United States when the owner of the locations filed for bankruptcy. Popeye’s was quick to capitalize on the failing fast food franchises and presented a deal to purchase all of the recently closed locations for just about $14 million with the intent to reopen them as Popeye’s franchises. The deal was accepted by the bankruptcy court and the restaurants closed down, rebranded, redecorated and reopened as Popeye’s. While KFC is growing in popularity internationally, in the US, KFC is known as a brand that has been struggling as restaurants continue to close.
Taste and New Products
While I personally don’t eat at either KFC or Popeye’s, I have seen several reports that indicate that Popeye’s offers a better quality product than KFC. When comparing their biscuits, Carol Tice a contributor for Forbes.com said: "Take a biscuit from each chain and have a bite, and any questions you have will be resolved. KFC’s biscuit is a biscuit. Popeyes' biscuit is a buttery, melt-in-your-mouth little slice of pure buttermilky heaven. It doesn’t even need anything on it."
Another common complaint that I have heard is that KFC’s quality of chicken has declined and become greasy. Additionally, KFC has been criticized for not adding new items to their menu as frequently as other fast food chains do.
Let's not forget the PR nightmare that occurred in 2004 when KFC’s supplier was accused of animal cruelty. PETA filed law suits against them and still to this day has a website dedicated to boycotting their company. KFC has been at the center of bad PR for years and something like this can stick with a company indefinitely.
Popeye’s is a growing brand, while KFC seems to be losing popularity in the US. The bankruptcy of an owner that controlled 29 locations could be a red flag that their franchisees don't have the support that they need or that the proper training was not it in place to help franchisees remain successful in business. Years of bad PR pile on to the list and on top of everything I mentioned here, opening a KFC franchise requires an initial investment of $1.2 - $1.8 million while a Popeye’s franchise ranges between $306,000 and $371,000. When looking to buy a fast food franchise, if you are deciding between Popeye’s or KFC, in my opinion, Popeye’s is the better investment.
About This Contributor: Peter Siegel, MBA is the Founder & Senior Advisor (ProBuy & ProSell Programs) at BizBen.com (established 1994, 8000+ California businesses for sale, 500 new & refreshed postings/posts daily) working with business buyers, business owners/sellers, business brokers, agents, investors, and advisors). Phone him at 866-270-6278 or 888-212-4747 to discuss strategies regarding buying, selling, (or financing a puchase of) California businesses.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|William Park, Business Broker - Southern California
Highest Volume Broker in California, Simply Check our HUNDREDS of Listings! Over 25 Associates, Speaking Dozen Languages, Helping Buyers and Sellers of Small Business since 1982, Centrally Located between Los Angeles and Orange Counties, while Riverside & San Bernardino Counties are Very Accessible.
|Ron Hottes, Broker - Serving LA, Orange, Inland Empire Area
LINK Business is a business brokerage team of 28 highly skilled and seasoned professionals. Our business brokers have over 100 years of cumulative experience & the expertise to help you buy or sell a business in the LA County, Orange, Inland Empire areas. Call Ron for a consultation at 310-539-8300.
|Abdul Jobah, Business Broker, Central Valley, Kern County
As A Real Estate Agent, I offer my clients assistance with the sale or purchase of commercial properties and/or businesses. Please contact me if you are looking to sell or buy a Central Valley business. If at any time you have any questions please do not hesitate to call me at 661-703-3916.
|Rick Carlson, Business Broker - Southern California
You Will Never Feel Lost In The Shuffle. Many Brokers Simply Send Out An NDA And That's The End Of Communication. All Buyers Receive A Personal Meeting With An Ace Acquisition Specialist So They Can Recommend The Perfect Business For You. Phone Rick direct at 800-985-4939.
|Harry Sidhu, CBB, Broker - SF Bay Area, Central Valley, SAC Region
Assisting both sellers and buyers of businesses - dealing mainly with Liquor Stores, Grocery Markets, Gas Stations, Smoke Shops, Restaurant Related, Retail Related, Service Related. Serving SF Bay Area, North Bay, Sacramento area. Call Harry Sidhu, CBB for assistance at 510-366-6130.
|Peter Siegel, MBA - SBA Loans, Non SBA Financing Assistance
For over 25 years I have provided niche business purchase financial advisory and loan placement services with SBA and Non-SBA Loans, Retirement Plan Conversions, Private Investors, etc. Financing amounts available: $20K to $7MM. Call today to get pre-qualified or receive financing: 866-270-6278.
|Jeff Back, Broker: Restaurant Specialist - SF Bay Area
J. Back & Associates Restaurant Real Estate was founded in 1988 as the first bay area real estate company to specialize exclusively in restaurant real estate. I am the past President of Charley Browns restaurants and have been involved in the restaurant business for over 35 years. 925-736-8200.
|Lee Petsas, Business Broker - Orange, San Diego Counties, Inland Empire
UBI Business Brokers has been successfully selling businesses in Southern California since 1965. Our Agents have over 100 years of experience in selling small to medium size businesses throughout Southern California. We service Orange County, Inland Empire, San Diego. Phone Lee at 714-363-0440.
|Related Articles, Events, Blog Posts, Discussions, Videos, Interviews|
|Why Restaurant Buyers Typically Fail: Best Pro Tips For Buying A Restaurant
Buying a restaurant (no matter what type) can have many pitfalls, and potential restaurant buyers should know how to avoid getting burned! Several restaurant intermediaries and advisors weigh in on this BizBen Discussion about the best way to find, purchase and run a restaurant successfully!
|Specialty Restaurant Broker Discusses Liquor Licenses & Working With The ABC
What you will read in this BizBen blog post you will probably not find in any manual or set of instructions provided by the ABC (liquor licenses in California). This blog post by Jeff Back (SF Bay Area Restaurant Broker Specialist) at 925-736-8200 discusses this topic of liquor licenses in detail.
|Tips From A Restaurant Broker - Check A Restaurant For Karma Before You Buy
Jeff Back (925-736-8200), a SF Bay Area broker specialist who specializes in selling restaurants discusses what he looks for when sizing up a potential restaurant for sale. Do the restaurants you're thinking of puchasing have a good Karma. See Jeff's insights into this topic on restaurant karma.
|Financing The Purchase Of A Frozen Self-Serv Yogurt Shop - Tips For Buyers
Financing a frozen self-serv yogurt shop for can be challenging. Here, you'll learn the real scoop behind financing a yogurt shop purchase to help it be profitable from the start. Peter Siegel at BizBen.com
|Business Purchase Financing Help - Expert Tips For Faster SBA Loan Approvals
Business purchase financing advisor Peter Siegel, MBA shares his views on SBA loan financing. He explains the nuances of the SBA loan process when considering business purchase financing or getting pre-qualified. Reach Peter Siegel, MBA direct at 866-270-6278 regarding SBA & Non SBA Loan Financing.
|Don't Buy A Restaurant Without Checking The Competition - Key Buying Tips
Looking to buy a restaurant business? Check out these tips first to avoid getting blindsided when you buy any type of small or mid-sized California restaurant. Peter Siegel, MBA (BizBen's ProBuy & ProSell Programs & Restaurant Purchase Financing Expert) at 866-270-6278 covers this topic for buyers.
|Preparing Your Bay Area Business For Sale: Accounting & Financial Statements
The first thing you should start working on when selling your business is getting your financial statements in order. Having correct, easy to read, simple financial statements Is key in showing interested buyers. Craig Osterhoudt (SF Bay Area Business Broker at 650-995-2644) shares his experience.
|5 Dangerous Trends Small Business Seller/Owners Should Consider When Selling
Craig Osterhoudt (SF Bay Area Business Broker) at 650-995-2644 discusses 5 key areas small business SF owners should think about before they sell their small to mid-sized business. Topics include: Commodization, Amazon, Big Box Stores, Rules and Regulations, and Baby Boomers. Great info for owners.
|See All News, Tips And Events|