Archive for the ‘KFC’ Category

How many chickens does Costco buy & sell each year?

December 14, 2018

According to CNBC

Costco is shelling out $440 million to open a Nebraska chicken farm.

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Why is Costco doing it?

“To partially escape the American chicken monopoly run by the likes of Tyson, Pilgrim’s Pride and Perdue.”

Technical note to CNBC: A monopoly has only one supplier.  A duopoly has two. When there are three, it’s a concentrated competitive market.

The self-operated farm provide Costco with 100 million chickens … 40 percent of its yearly chicken needs.

Doing the arithmetic, that means that Costco goes through about 250 million chickens every year.

That’s a lot of chickens but pales in comparison to KFC which reportedly goes through 3 or 4 times as many.

Personal note: Many, many years ago, I interviewed for a position at KFC as a chicken buyer. I was recruited because I had an economics degree and had worked for a large grocery store chain.

It wasn’t a good fit. (<= understatement)

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“We ain’t got no chicken”

March 12, 2018

Finally, I can tell one of my favorite stories.
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A couple of weeks ago, due to a “supply chain issue”, KFC ran short of chicken at many of it’s UK stores.

That’s a problem since:

1) The UK is KFC’s 5th biggest market – accounting for about 6% of company sales.

2) KFC is shorthand for Kentucky Fried CHICKEN !!!

That’s a big problem.

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OK, here’s my story ….

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What has 8 legs and 6 wings?

June 2, 2015

Answer: Definitely not a Kentucky Fried Chicken.

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When I heard a news blurb talking about KFC genetically raising chickens with 8 legs and 6 wings, I bought in.

I figured: smart move.

Kids devour drumsticks and wings are still one of the hottest bar foods around.

My thought: good operations move … improve the “yield” from each chicken.

Turns out that my read wasn’t the story at all …

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