KFC unveils 'chicken littles;' targets new business with 1-oz. sandwiches

Nation's Restaurant News, Feb 2, 1987 by Rick Van Warner

KFC unveils "chicken littles'

Targets new business with 1-oz. sandwiches

Kentucky Fried Chicken has unveiled miniature 39^ chicken sandwiches through a 45-store test here and in Dayton, Ohio.

The chain hopes individually wrapped, 1-oz. "chicken littles' will boost new sales at lunch, a daypart it has strived to build in recent months. KFC has bombarded the two test markets with extensive television and print advertising.

"We're going after the sandwich category to increase our lunch business,' said Richard Mayer, KFC chairman and chief executive. "It's an incremental opportunity.'

Reminiscent of White Castle, a chain that built its fortune on mini-burgers, KFC is the third major fast-food concern to introduce small economical sandwich products recently. Burger King is testing 1-oz. burgers, and Wendy's is looking at a 2-oz. size.

Concerned that rising fast-food ticket averages may be driving low-end customers away, the burger chains have apparently scrambled for low-cost menu options. KFC, with an overall check average of about $5, seems to be expanding its product base to include such patrons. Newspaper ads tout, "They cost just a little. People love "em a lot.'

WHILE ENTICING new customers could fatten sales, KFC runs the risk of cannibalizing existing higher-priced menu items with the new low-cost product. Mayer would not disclose whether the profit margin on the mini-sandwich might offset that hazard.

"It's a key question we'll be looking at throughout the testing,' he said.

The square, 1-oz. breaded chicken pattie contains the Colonel's 11 secret herbs and spices and is served on a small bun with or without mayonnaise. Although several other toppings were offered in a preliminary, one-unit operations test, mayonnaise is the only one available in test marketing.

Mayer said that although the full-size chicken sandwiches have been available in select KFC markets for a few years, the smaller size shows more promise of widespread popularity. The full-size sandwiches have failed to perform well on a systemwide basis.

While the 1-oz. pattie seems to be the size customers most prefer so far, he noted, "we've tested and are continuing to test different sizes.'

KFC IS evaluating an equipment package anchored by a special open fryer to accompany a possible rollout of "chicken littles,' Mayer said. The chain anticipates that additional equipment primarily will be needed to handle significantly increased volumes, he stressed. KFC uses open fryers to produce its "extra crispy' chicken, nuggests and French fries. No final decisions have been made, and "equipment will vary by store,' he added.

With 61% of KFC's sales occurring at dinner, the chain is predominantly an evening destination and take-out stop.

KFC appears poised for a major thrust into the lunch segment. A facilities upgrading program has increased seating in many units. Chef and side salads are being tested in Knoxville, Tenn., and Las Vegas, which is also host to a roasted chicken test.

After a period of several years during which no new products were introduced, KFC rolled chicken nuggets and scratch-made buttermilk biscuits.

Some industry sources feel that PepsiCo's recent acquisition of the chicken giant will put further emphasis on new products. PepsiCo's other restaurant holdings, Pizza Hut and Taco Bell, have enjoyed successful results from new product introductions.