KFC opens new ‘Saucy’ restaurant focused on tenders, sauces
KFC is bringing a different flavor to the table, 11 flavors in fact, with its new concept, “Saucy.” The restaurant opened in Orlando, Florida, on Monday, Dec. 23.
While KFC, known for its fried chicken, is behind this new location, “Saucy” is all about chicken tenders and the sauces that come with them.
Customers can order the sauces individually or on a flight of four. There are 11 sauces to choose from, a nod to the 11 herbs and spices in “KFC’s Original Recipe.”
Some of the flavors are smokey bacon ranch, spicy mango chutney, sweet teriyaki, creole honey mustard and Saucy’s sauce. According to KFC, there seem to be over 4,000 different ways to order.
Beyond the sauces and tenders, Saucy offers sandwiches like the spicy queso crunch, desserts like the chocolate mousse cake and beverages like a blue raspberry freeze.
KFC said the restaurant’s design is meant to “delight the boldest generations of diners” by giving them a “tech-forward customer experience.” Customers can order their meals at kiosks. They’re also encouraged to hang out and enjoy live entertainment at the restaurant.
KFC chose Orlando due to its diverse demographic, according to officials. They said more “Saucy” restaurants are on the way. KFC’s “Saucy” joins legacy fast food chains creating innovative concepts.
McDonald’s has opened several of its “CosMc’s” restaurants across the country. This small-format brand’s bread and butter is beverages, though like “Saucy,” it also offers a spicy queso sandwich, among other items.
Taco Bell chose to focus on speed of delivery and drive-thru efficiency with its “Defy” concept. Burger King opened a similar concept with its “Sizzle” locations.
With an industry that generated nearly $400 billion in revenue in 2023, fast food companies are looking to find new ways to make that number grow bigger and bigger, whether it be with new restaurant designs, new drive-thru layouts or a bunch of new sauces.
White Castle becomes latest restaurant to join value meal wars
White Castle is latest chain to join the value meal wars as restaurants try to attract inflation-worried customers who might be thinking of dining at other places or just staying at home. The company has cut the cost of its burgers by more than 30%.
For a limited time, the Ohio-based chain is selling shareable sacks of 10 cheese sliders for $7.99 — that’s less than 80 cents per burger. The last time White Castle burgers were available for that price was in 2011.
“Customers are making leftovers last longer as food prices have gone up,” White Castle Vice President Jamie Richardson told The New York Post. “We are known for value. We are leaning into it more now.”
White Castle is flipping prices at its 335 stores to compete with the competition, including its larger rivals like McDonald’s, Burger King and Taco Bell who each have unveiled a value meal of their own.
As McDonald’s fought back against what it called “inaccurate” reporting about its pricing earlier this year, the fast-food giant introduced its $5 value meal. The meal includes a choice of a McChicken or McDouble, and four-piece Chicken McNugget, small fries and a small drink.
The deal is staying around through August, which is longer than originally planned. In an internal memo obtained by multiple news outlets, McDonald’s executives wrote, “When our customers are ordering the $5 Meal Deal, they aren’t visiting the competition, and early performance shows this deal is meeting the objective of driving guests back to our restaurants.”
The competition is also bringing on the value. Burger King’s $5 Your Way meal offers three different sandwich options, Taco Bell’s Luxe Cravings Box includes two different types of tacos, a burrito and more for $7. Starbucks’ Pairing Menu gives customers the option of buying a drink and a breakfast item for $5 or $6.
Other chains like Wendy’s, Popeyes, Jack in the Box and Sonic have all launched new deals. But these companies now not only have to compete with each other but also with restaurants from outside the fast-food space.
Fast casual chains like Applebee’s and Chili’s have called out their fast-food rivals, even in their commercials. These restaurants, no matter the category, are all trying to hold onto their place in the dinner conversation of cost-conscious Americans.
US restaurant chains feeling impact of Middle East war, protests
Major U.S. restaurant chains are seeking innovation in 2024 to grow their brands as they say sales have taken a hit by the ongoing war in the Middle East. McDonald’s, Starbucks, Taco Bell and Burger King have released quarterly reports, showing the Israel-Hamas conflict has impacted their bottom line.
Yum Brands — which owns Taco Bell, Pizza Hut and KFC — missed Wall Street estimates, with revenue coming at $2.04 billion as opposed to the expected $2.11 billion.
“Before I discuss our results, I want to express our continued concern for those impacted by the ongoing conflict in the Middle East,” Yum CEO David Gibbs said to the company’s regional workers in a Feb. 7 investor call. “We continue to prioritize the safety and well-being of our franchisees and employees in the region.
“During the quarter, top line sales were impacted by the conflict in the Middle East region with varying degrees of impact across markets in the Middle East and Malaysia and Indonesia. This represented a low single-digit headwind to Yum’s overall sales growth.”
Yum’s Pizza Hut division was the target of a boycott after Pizza Hut Israel posted a now-deleted Instagram story appearing to show employees handing out free pizzas to Israel Defense Forces soldiers. The hashtag #BoycottPizzaHut became a trending topic on X.
Israeli soldiers expressing gratitude to Pizza Hut franchises in Israel for providing free meals to military bases. pic.twitter.com/kTYp1I7hNW
McDonald’s is facing a similar situation in the Middle East. While the company’s global same-stores sales grew last quarter by 3.4%, it was short of estimates of 4.7%.
The company faced boycotts from Muslim-majority countries late last year after an Israeli licensee offered discounts to IDF soldiers. McDonald’s shut down some locations temporarily for the safety of its employees.
In a message posted to LinkedIn last month, McDonald’s CEO Chris Kempczinski said he recognized “several markets in the Middle East and some outside the region are experiencing a meaningful business impact due to the war and associated misinformation that is affecting brands like McDonald’s.”
Kempczinski continued, calling the effects “disheartening and ill-founded.”
He echoed those sentiments during the most recent investor call.
“We recognize that families and their communities in the region continue to be tragically impacted by the war and our thoughts are with them at this time,” Kempczinski said. “McDonald’s has always been a beacon in our communities around the world, led by local franchisees who work tirelessly to serve and support. The ongoing impact of the war on these franchisees’ local businesses is disheartening and ill-founded. As our values state, McDonald’s will always proudly open our doors to everyone.”
Like McDonald’s, Starbucks’ global same-store sales increased in the last quarter, though only by 5%, short of estimate the 7.2% estimate.
Starbucks CEO Laxman Narasimhan said the coffee chain is experiencing the effects of “misperceptions” about the company’s stance on the war as well as a slowdown in foot traffic in U.S. stores.
“We saw a negative impact to our business in the Middle East. Second, events in the Middle East also had an impact in the U.S., driven by misperceptions about our position,” Narasimah said during the conference call. “Our most loyal customers remain loyal and in fact, increased their frequency of spend in the quarter. But we did see a softening of U.S. traffic. Specifically, our occasional U.S. customers, who tend to visit at the afternoon, came in less frequently.”
The controversy surrounding Starbucks began just two days after the October terrorist attack by Hamas, when Starbucks Workers United — a union representing hundreds of workers — posted “Solidarity with Palestine” on X.
While the post was taken down 40 minutes later, Starbucks said it led to more than 1,000 complaints and acts of vandalism at stores. The company sued the union for trademark infringement.
“Our position remains unchanged,” Starbucks said in a December 2023 statement. “Starbucks stands for humanity. We condemn violence, the loss of innocent life and all hate and weaponized speech. Despite false statements spread through social media, we have no political agenda. We do not use our profits to fund any government or military operations anywhere and never have.”
The week of Feb. 18, Restaurant Brands International — the parent company of Burger King — released its latest quarterly figures. Despite beating Wall Street estimates, the Middle East war still left a mark on the company’s overall business. CEO Josh Kobza said the impact was felt in “upward of a dozen countries.”
“We are not going to speculate on how long this headwind may last,” Kobza said on the conference call. “In the impacted countries, our entire focus is on the safety of our team members and partners.”
The war is now in its fourth month, and with no cease-fire plan in place, these U.S. restaurant chains are turning to new ideas and products to keep their sales from slipping at home and abroad. McDonald’s is planning to open more than 2,100 new U.S. locations this year and has recently released an updated version of its famous hamburger.
Burger King is set to remodel nearly 400 of its locations — some with what the company calls the “Sizzle” prototype — as it tries to freshen up its brand’s image. Starbucks is thinking beyond the coffee cup and adding new food items to its menu.
Yum Brands is looking to combat sales softening at its restaurants through new food offerings and loyalty rewards programs.
Taco Bell is planning to release one new product every five weeks. It unveiled this year’s upcoming menu items at an event in Las Vegas during Super Bowl week dubbed “Live Más Live,” in the vein of Apple’s product announcements.
Yum also spent money for a Super Bowl commercial advertising Pizza Hut’s new hot honey pizza and wings.
Other brands who have experienced backlash amid the war — Domino’s and Papa John’s — will release their quarterly earnings later in February.
Judge rejects Burger King bid to dismiss lawsuit over Whopper size
A judge rejected Burger King’s bid to dismiss a lawsuit claiming the company makes its signature Whopper appear larger than it actually is. The class-action suit claimed Burger King’s depiction of the Whopper on in-store menu boards misleads customers, amounting to a breach of contract.
The lawsuit accuses Burger King of portraying the Whopper as containing ingredients that “overflow the bun,” making the burger look 35% larger with more than double the meat. The company countered, saying it wasn’t required to deliver burgers that look “exactly like the picture.”
“The plaintiffs’ claims are false,” Burger King said in a statement on Tuesday, Aug. 30, according to Reuters. “The flame-grilled beef patties portrayed in our advertising are the same patties used in the millions of Whopper sandwiches we serve to guests nationwide.”
It’s not just Burger King being targeted with lawsuits over false advertising. McDonald’s and Wendy’s were also sued over burger sizes in 2022. On Monday, Aug. 29, lawyers for the plaintiffs in that case cited the Burger King ruling to justify letting the case continue.
In July of 2023, Taco Bell was sued over its Crunchwraps and Mexican Pizzas. Each lawsuit seeks at least $5 million in damages.
“Taco Bell does not adequately disclose the weight of the beef or filling,” Anthony Russo, a lawyer in both the Burger King and Taco Bell lawsuits, said in an email. “Plaintiff did not make any purchases of the product based on any weight disclosure but solely based on the picture of the product, as we believe most consumers do.”
