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 925-785-3118 to discuss strategies regarding buying, selling, (or financing a puchase of) California businesses.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Ryan Clark, Business Broker, Southern California
The Veld Group provides a refreshing approach to Business Brokerage, Mergers & Acquisitions and Business Consulting and Valuations. From Your Street to Wall Street, we cater to Main Street Businesses as well as more complex Strategic Firms and Start-Ups. Phone Ryan at 310-652-8353.
|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.
|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.
|Steve Zimmerman: Restaurant Broker Specialist
Steve founded Restaurant Realty in 1996. He has personally sold/leased over 900 restaurants, bars & clubs, & completed over 3000 valuations. The author of "Restaurant Dealmaker - An Insider's Trade Secrets For Buying a Restaurant, Bar or Club" available on Amazon. Reach Steve direct at 415-945-9701.
|Manjit Singh: SF Bay Area - Business Broker
Assistance in the San Francisco Bay Area. Contact me about buying or selling a restaurant, liquor store, gas stations, markets, and c-store businesses. If you are looking to buy or sell a SF Bay Area liquor store, market, c-store, restaurant, etc phone me direct at 510-417-9429.
|Chris Seaman, Business Broker - San Diego County Area
Founded in 1994, First Choice Business Brokers has accelerated to become one of the most successful Business Sales Organizations in the world. Our team of agents have gone through extensive training to become experts in the field of business brokerage. Call Chris at 858-578-4111 for more info.
|Jack Oh, Business Broker - LA, Orange Counties
Business broker and real estate services in the Los Angeles and Orange County areas. 10 years experience with great negotiating skills. To sell a business or buy a business in the LA or Orange County Areas phone Jack and his team at 562-787-4989.
|Matt Sadati, Business Broker, SF Bay Area, Northern CA
I have Engineering and Law, JD degree, with over 30 years of experience in all phases of entrepreneurship. During the past 15 years my concentration has been in business of mergers and consulting. I have owned and operated over 33 businesses each having one to 30 branches.
|Related Articles, Events, Blog Posts, Discussions, Videos, Interviews|
|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.
|FREE Webinar: Buying Or Selling San Francisco Restaurants - Best Practices
This informative 40 minute interview/webinar about buying & selling restaurants in San Francisco with restaurant broker specialist Cheryl Maloney is a real eye opener for restaurant buyers and sellers. Cheryl gives great advice to both buyers and sellers from her years of experience in the industry.
|Liquor License Assistance - SF Bay Area - Jim Saxton
Jim Saxton - 20 years experience of local governmental requirements, such as Police Departments, Zoning / Planning Departments, ABC District Offices, my company Liquor Licenses of SF Bay Area is very qualified to resolve all of your concerns during the liquor license transfer process. 925-787-0770.
|Buying A Restaurant With Financing: 5 Options For Restaurant Business Buyers
In this Discussion, Peter Siegel MBA (Business Purchase Financing Advisor at 925-785-3118) discusses financing of purchasing a small to mid-sized restaurant business (with or without real estate). When it comes to financing a restaurant, potential restaurant buyers have many options to choose from.
|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 purchasing have good Karma? See Jeff's insights into this topic on restaurant karma.
|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!
|Buying A Pizza Restaurant, Pizzeria Tips: What Pizzeria Buyers Need To Know
Peter Siegel, MBA discusses buying pizza restaurant for sale tips and what to watch out for. Topics: Owner involvement in the business as pizzerias are most successful when the owner is onsite.
|Buying A Business: Why Is It Important To Look At Its Tax Filings?
Business tax filings are very important factor in determining the credibility of business financials. Just seeing those financials, you can't determine whether those values are overstated or not. Some business owners provide made up financials to buyers - so, that's where tax fillings come in.
|See All News, Tips And Events|