KFC® Expands $5 Value Menu to Offer Customers More Options - Choose from Three Taste of KFC Deals

Rhea-AI Summary

KFC is expanding its $5 Value Menu with new Taste of KFC Deals, offering customers more affordable options. The menu now includes:

• NEW: 8 Original Recipe Chicken Nuggets with fries and 2 sauces
• NEW: Famous Bowl with Chicken Nuggets
• Two-Piece Drum & Thigh meal

KFC continues to offer the $10 Tuesdays deal (8 pieces of chicken) and the $20 Family Deal. New digital-exclusive offers include a 40-Piece Saucy Nuggets Party Pack for $19.99, Sandwich + Nuggets Meal for Two at $15, and Five-Piece Chicken on the Bone Meal for Two at $15. Additionally, customers can enjoy 50% off Chicken Sandwiches and FREE DELIVERY on Thursdays during football season when ordering through KFC.com or the KFC app.

Positive

• Introduction of new $5 Taste of KFC Deals, expanding affordable options
• Continuation of popular $10 Tuesdays and $20 Family Deal offers
• Launch of digital-exclusive deals, including a 40-Piece Nuggets Party Pack for $19.99
• 50% discount on Chicken Sandwiches when ordering through KFC.com or app
• Free delivery promotion on Thursdays during football season

Negative

• None.

Insights

Market Research Analyst

KFC's expansion of its value menu is a strategic move in the highly competitive fast-food industry. This pricing strategy aims to attract cost-conscious consumers amid inflationary pressures. The introduction of new $5 deals and the continuation of existing value offers like "$10 Tuesdays" demonstrate KFC's commitment to maintaining market share.

The expanded menu, including digital-exclusive deals, shows KFC's focus on omnichannel growth. By offering app-exclusive discounts, KFC is likely aiming to increase digital adoption and gather valuable customer data. The $19.99 40-Piece Saucy Nuggets Party Pack and $15 meal deals for two are particularly noteworthy, as they target different consumer segments and occasions.

While these promotions may drive traffic and sales volume, they could potentially impact profit margins. However, the strategy may pay off if it leads to increased customer loyalty and higher-margin add-on purchases. The success of this approach will depend on KFC's ability to manage costs and operational efficiency.

Financial Analyst

KFC's aggressive value menu expansion could have mixed financial implications. On one hand, it may drive top-line growth by increasing customer visits and average ticket size. The $5 deals and family bundles are designed to appeal to budget-conscious consumers, potentially boosting sales volume.

However, this strategy could pressure profit margins in the short term. The 50% off promotion on chicken sandwiches and free delivery offers may significantly impact profitability if not offset by increased sales or operational efficiencies. The key will be KFC's ability to manage food and labor costs while driving sufficient volume to maintain overall profitability.

Investors should monitor KFC's same-store sales and operating margins in upcoming quarters to gauge the effectiveness of this strategy. If successful, it could lead to market share gains and improved financial performance in the long run, but there's a risk of margin erosion if the promotions don't drive sufficient incremental business.

KFC claps back in "Value Wars" with more deals for customers every day of the week this fall

LOUISVILLE, Ky., Aug. 12, 2024 /PRNewswire/ -- KFC is rolling out brand-new $5 deals to its Taste of KFC menu to deliver finger lickin' good value and make KFC affordable for everyone. Starting today, the Taste of KFC Deals menu features three $5 offers:

• NEW DEAL – KFC Chicken Nuggets: Enjoy eight chicken nuggets hand-breaded with KFC's Original Recipe, Secret Recipe Fries and your choice of two sauces.
• NEW DEAL – Famous Bowl with KFC Chicken Nuggets: Famous Bowls are made fresh to order with a foundation of creamy mashed potatoes, sweet corn, and KFC's 100% white meat chicken nuggets, layered together and drizzled with home-style gravy and topped with a perfect blend of three shredded cheeses.
• Two-Piece Drum & Thigh: Grab two pieces of hot, juicy fried chicken (drum and thigh), creamy mashed potatoes and gravy and a buttery biscuit.

"As customers are looking for more value from brands, we're expanding our Taste of KFC lineup with new KFC fan favorites like our nuggets and Famous Bowls, each for just $5," said Nick Chavez, CMO, KFC U.S. "These Taste of KFC Deals offer three choices – with something for everyone – at an incredible price."

In addition to the suite of $5 deals, KFC continues to offer its popular "$10 Tuesdays" deal: get a bucket full of eight pieces of hot, juicy drums and thighs at KFC for just ten bucks. Every day of the week, customers can also enjoy the $20 Family Deal – six pieces of mouthwatering chicken on the bone (two drums, two thighs, one breast and one wing), four individual sides of your choice, and four buttery biscuits.

Along with the Taste of KFC Deals, KFC's value menu available in restaurants and via online orders, KFC has more new finger lickin' good digital exclusive deals:

• 40-Piece Saucy Nuggets Party Pack: Your choice of four Saucy Nuggets flavors (options include NEW Honey Garlic, Chipotle Ranch and Mango Habanero, or returning favorites Korean BBQ and Honey BBQ) for just $19.99.**
• Sandwich + Nuggets Meal for Two: Table for two! Indulge in your choice of two sandwiches (Classic or Spicy) along with a 10-piece of KFC's 100 percent white meat nuggets, your choice of two individual sides and two medium drinks – all for just $15!***
• Five-Piece Chicken on the Bone Meal for Two: For the pair craving KFC classics, this is for you. Customers get a deal on five pieces of chicken, your choice of two individual sides, two medium drinks and two buttery biscuits – again for just $15!***
• 50% Off Chicken Sandwiches: Enjoy 50% off your choice of the KFC Chicken Sandwich when ordering on KFC.com or the KFC app. Choose from Classic, Spicy or the new Saucy Sandwich.****

For over 70 years, KFC has been bringing families together through its Original Recipe^® fried chicken during weeknights, family gatherings and game days. This football season (starting Sept. 5), score on Thursdays with FREE DELIVERY on any orders on KFC.com and the KFC app.*****

*Prices, participation and product offering may vary. Prices higher in AK, HI, CA and third-party ordering websites. Tax, tip and fees extra.

**Only available on kfc.com or the KFC app for participating stores. Prices higher in AK, HI, CA. Tax, tips and fees extra. Allow extra cook time for large orders.

***Only available on KFC.com or the KFC app for participating stores. Prices higher in AK, HI, CA. Tax, tip and fee extra.

****Only available on KFC.com or the KFC app for participating locations (before taxes, tips & fees). Excludes Chicken Little sandwich. Must redeem offer via applicable banner prior to checkout. Customer responsible for all taxes, tips and fees. Cannot be combined with other offers. Limit 1 per transaction.

*****Free delivery available only on KFC app and kfc.com at participating locations only on Thursdays from 9/5/24-1/5/25. Delivery availability and hours may vary. Not available for orders placed on third-party delivery platforms. Taxes, tips, fees extra.   

About KFC
KFC Corporation, based in Louisville, Ky., has been serving up Finger Lickin' Good Original Recipe fried chicken since 1952. Beyond the top secret 11 herbs & spices, KFC specialties include the KFC Chicken Sandwich, Extra Crispy chicken and Extra Crispy Tenders, KFC Famous Bowls, Pot Pies, Secret Recipe Fries, biscuits and homestyle sides. There are over 30,000 KFC restaurants in nearly 150 countries and territories around the world. KFC Corporation is a subsidiary of Yum! Brands, Inc., Louisville, Ky. (NYSE: YUM). For more information, visit www.kfc.com. Follow KFC on Facebook, Twitter, Instagram and TikTok.

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SOURCE Kentucky Fried Chicken

FAQ

What new items are available on KFC's $5 Value Menu?

KFC has added two new items to its $5 Value Menu: 8 Original Recipe Chicken Nuggets with fries and 2 sauces, and a Famous Bowl with Chicken Nuggets.

What is KFC's $10 Tuesdays deal?

KFC's $10 Tuesdays deal offers customers a bucket of 8 pieces of hot, juicy drums and thighs for $10.

What digital-exclusive deals does KFC offer?

KFC offers digital-exclusive deals including a 40-Piece Saucy Nuggets Party Pack for $19.99, Sandwich + Nuggets Meal for Two at $15, and Five-Piece Chicken on the Bone Meal for Two at $15.

When does KFC offer free delivery in 2024?

KFC offers free delivery on Thursdays from September 5, 2024, to January 5, 2025, when ordering through KFC.com or the KFC app.