KFC Changes the Way Americans Eat Roast Chicken

Contacts:
KFC Corporation: Laura Melillo (502) 456-8042
Jeannie Litterst (502) 456-8366

New York, March 28, 1996 / KFC (Kentucky Fried Chicken) is changing the way Americans eat roasted chicken with the introduction of new Tender RoastŽ chicken this week in its 5,100 restaurants in the United States.

With new Tender Roast chicken, KFC leads the way by offering roasted chicken-lovers what they've been asking for -- delicious roasted chicken by the piece. KFC is the first national restaurant chain to offer fresh roasted chicken in by-the-piece convenience. Marketing tests showed that customers preferred pieces of roasted chicken (57 percent) to roasted chicken quarters (31 percent.)

Three years ago, rotisserie chicken was the fastest-growing chicken category. Two rotisserie chicken chains have built their businesses on whole-bird rotisserie chicken. In 1993, KFC introduced Colonel's Rotisserie GoldŽ (CRG) - the first rotisserie chicken advertised on national TV.

When KFC introduced CRG, the new product successfully attracted customers who hadn't been to KFC recently. At its peak, CRG represented a $750 million brand. But soon restaurants and supermarkets on every street corner in America were selling whole rotisserie chickens. Nonetheless, even today, CRG accounts for almost 10 percent of total KFC sales. But today, Americans say they want their roasted chicken in pieces. So that's what KFC is giving them - Tender Roast chicken pieces.

"Have you ever tried to pick up a whole roasted chicken?" said David C. Novak, KFC president and CEO. "It's not easy. That's why now we're offering our roasted chicken by the piece - so customers can easily mix and match with our always-popular Original RecipeŽ and Extra Tasty Crispy^TM chicken."

KFC's new Tender Roast is fresh chicken pieces, marinated in the restaurant in a light herb seasoning, sprinkled with an herb coating and slowly roasted in a rotisserie oven. To assure a moist, delicious product, Tender Roast is prepared with the skin on. The result is pieces of juicy chicken with a mellow chickeny taste and a crispy, lightly herb-flavored skin.

"We're giving mom or dad or whoever is buying dinner the chance to bring home three different kinds of chicken by-the-piece to satisfy the tastes of every chicken-lover in the family," said Keith Chambers, a KFC franchisee and chairman of the KFC National Cooperative Advertising Program, Inc.

In the tradition of other KFC products, Tender Roast chicken is priced the same as Original RecipeŽ and Extra Tasty Crispy™ chicken, keeping it affordable for families. Prices may vary from region to region.

Network TV advertising for the new product begins April 1. The campaign from Young & Rubicam/NY includes four spots (two :30s and two :15s) with two themes.

The first features a mother who disregards her own rules and eats Tender Roast pieces with her fingers. The ad includes an introductory offer of two pieces of Tender Roast and two individual side items and a biscuit, all for $2.99. The second centers around a father who endears his finicky daughter by bringing home Tender Roast pieces along with the family's usual KFC chicken order.

The campaign continues the "Everybody Needs a Little KFC" theme launched a year ago.

Kentucky Fried Chicken Corp. (KFC), based in Louisville, Ky., is the world's most popular chicken restaurant chain specializing in both fried and roasted chicken pieces and homestyle sides. Since its founding in 1952 by Colonel Harland Sanders, KFC has been "America's Leading Kitchen For Convenient Meals," serving customers delicious, already-prepared complete family meals at affordable prices. Today, there are nearly 9,700 KFC outlets in 82 countries around the world serving more than six and a half-million customers each day. KFC is a subsidiary of PepsiCo, Inc., Purchase, N.Y. (PEP).

KFC Corporation and its franchisees have been testing various ways to improve the company's non-fried chicken product since early 1995. The overriding goal was to make Colonel's Rotisserie GoldŽ (CRG) or a similar non-fried product easier to prepare and serve as well as more convenient for customers to buy and eat.

Working hand-in-hand with franchisee operators, KFC's research and development and marketing departments have developed new Tender Roast™ chicken - fresh chicken pieces marinated in the restaurant and then roasted in special baskets in KFC's rotisserie ovens.

The development started even before Colonel's Rotisserie GoldŽ rolled out in mid-1993. Little Rock, Ark., franchisee Jerry Haynie had been working on ways to prepare rotisserie chicken in pieces so he could offer the chicken on his buffet along with Original RecipeŽ and Extra Tasty Crispy™.

Work on roasted pieces was suspended while CRG rolled out and took off. The response to CRG was extremely positive, but sales in many restaurants were dependent upon the amount of advertising devoted to the product. Though customers were extremely enthusiastic about CRG, it was more complex than fried chicken to prepare, serve and eat.

In early 1995, work on simplifying the non-fried chicken process began. Nearly 100 product variations were tested with consumers, with three product formulations making it to full-market tests.

In June 1995, Jerry Haynie designed baskets which could be used in retrofitted rotisserie ovens for roasting pieces of chicken. He was able to cook the product fast and efficiently enough to put it on his buffet. Sales of non-fried chicken in his three test restaurants nearly doubled, from 10 percent to nearly 20 percent, all without advertising.

That next month, franchisee Fred Bauer put Tender Roast pieces in four of his restaurants in central Ohio. Without advertising, sales of non-fried chicken in Bauer's restaurants increased 25 percent.

In October, Bauer's test was expanded to 12 company and 23 franchised restaurants in and around Dayton. The number of chickens sold nearly doubled in company restaurants, while tripling and quadrupling in the franchised restaurants, which traditionally had sold less Colonel's Rotisserie Gold than company restaurants. Findings also showed that customers preferred pieces (57 percent) to quarters (31 percent).

During this time, research guidance tests (RGTs) showed that 75 percent of customers said they would buy Tender Roast pieces again.

Early in 1996, KFC tested new Tender Roast pieces in San Antonio, Texas. Results confirmed that Tender Roast chicken, prepared by the piece, is the way to go. Sales of non-fried chicken quadrupled in some restaurants; and even more interestingly, fried chicken sales doubled in others. Customer counts also went up 50 percent.

KFC's new Tender Roast is fresh chicken pieces, marinated in the restaurant in a light herb seasoning, sprinkled with a mild herb coating and slowly roasted in specially designed rotisserie oven baskets.

To assure a moist, delicious product, Tender Roast is prepared with the skin on. The result is pieces of juicy chicken with a mellowy chicken taste and a crispy, lightly herb-flavored skin.

For those consumers who count calories and fat, nutritional information for Tender Roast includes data on breast, thigh and leg as served with the skin on as well as when skin is removed by the customer:

Breast 4.9 oz/139 grams 251 calories 10.8 grams fat 151 mg cholesterol 830 mg sodium	Breast (w/o skin) 4.2 oz/118 grams 169 calories 4.3 grams fat 112 mg cholesterol 797 mg sodium
Thigh 3.2 oz/90 grams 207 calories 12.0 grams fat 120 mg cholesterol 504 mg sodium	Thigh (w/o skin) 2.1 oz/59 grams 106 calories 5.5 grams fat 84 mg cholesterol 312 mg sodium
Leg 1.9 oz/55 grams 97 calories 4.3 grams fat 85 mg cholesterol 271 mg sodium	Leg (w/o skin) 1.2 oz/38 grams 67 calories 2.4 grams fat 63 mg cholesterol 259 mg sodium
Wing 1.8 oz./50 grams 121 calories 7.7 grams fat 74 mg cholesterol 331 mg sodium

* Last year, the National Broiler Council reported that 68 percent of chicken prepared at home has been baked or roasted. Grilled and barbecued chicken is second, with 42 percent. Fried chicken remains a standard favorite in 38 percent of U.S. homes.

* In 1994, sales of whole chickens in grocery stores and restaurants accounted for just 20 percent of the U.S. market. According to the National Broiler Council, whole chicken sales are estimated to drop even further by the year 2000.

* According to the National Broiler Council, since 1970, per capita consumption of chicken has grown 44 percent - from 40 pounds to 72 pounds. In contrast, beef consumption is down 25 percent - from 84 pounds to 67 pounds in 1995.

* Over the last 20 years, Americans increased per capita consumption of all poultry (chicken, turkey, etc.) by 68 percent, with chicken accounting for about three-fourths of that increase.

* From 1991 to 1994, sales of non-fried chicken on the bone have grown 25 percent. Over the same period, sales of fried chicken fell 5 percent.