KFC runs out of chicken

Author
Discussion

V8mate

45,899 posts

189 months

Thursday 22nd February 2018
quotequote all
If you see any 2-for-1 special offers at your local 'chicken shop' this weekend, you know that the independents are picking up all the out of date chicken from KFC's distribution centre.


KTF

9,805 posts

150 months

Thursday 22nd February 2018
quotequote all
techguyone said:
Who will foot the "£1 million/day" cost?
I would imagine there will be some sort of insurance policy in place rather tan DHL paying the penalties themselves.

speedchick

5,173 posts

222 months

Thursday 22nd February 2018
quotequote all
KTF said:
techguyone said:
Who will foot the "£1 million/day" cost?
I would imagine there will be some sort of insurance policy in place rather tan DHL paying the penalties themselves.
gonna be interesting on the insurance renewal..... 'Have you made any claims in the last year?'

Super Slo Mo

5,368 posts

198 months

Thursday 22nd February 2018
quotequote all
KTF said:
techguyone said:
Who will foot the "£1 million/day" cost?
I would imagine there will be some sort of insurance policy in place rather tan DHL paying the penalties themselves.
DHL tend to self-insure in my experience, so quite possibly it comes straight out of their bottom line.

vikingaero

10,329 posts

169 months

Thursday 22nd February 2018
quotequote all
I've done work for DHL.

They will undercut and cut their own throats to get a foot in the door. As an example they got a NOMS Prison Canteen contract so that they could take over the gate, stores and works departments. They lost stores to Mitie Group and the fabled Carillion took over works. They saw expansion with 500 more KFC stores forecast to be open. KFC UK is owned by Yum! who also operate Pizza Hut, so they probably looked long term to take over that.

It's a company. Nothing is owned. Warehouse leased, vehicles leased, everything they can lease they will. If they could get away with leasing paperclips they would. There are relatively few DHL employees - managment and FLM. Everything else will be farmed out - HR etc. Most others will be agency. Some ye olde school drivers will be DHL but most are agency.

Are they that bad? Not really. They are the largest distribution co in the UK with 8% of the market. No-one else comes close. The nearest competitor is Keune & Nagel with 1.5%. People don't realise how much delivery DHL does for the UK. We only see the DHL Courier side, yet they ship JLR and other automotive, Argos, Boots, Best-One, NHS Supplies, The Range, etc etc etc

Vaud

50,471 posts

155 months

Thursday 22nd February 2018
quotequote all
vikingaero said:
It's a company. Nothing is owned. Warehouse leased, vehicles leased, everything they can lease they will. If they could get away with leasing paperclips they would.
Many large businesses lease premises, laptops, servers, vehicles, etc...

Shakermaker

11,317 posts

100 months

Thursday 22nd February 2018
quotequote all
Vaud said:
vikingaero said:
It's a company. Nothing is owned. Warehouse leased, vehicles leased, everything they can lease they will. If they could get away with leasing paperclips they would.
Many large businesses lease premises, laptops, servers, vehicles, etc...
Exactly. Extremely common and sensible business practice.

Pebbles167

3,442 posts

152 months

Thursday 22nd February 2018
quotequote all
I had a KFC today for the first time in years. Got the 'Mighty bucket for one'.

I have to say, I can see why everyone is going nuts about the closures. That was without doubt, the tastiest chicken I can ever remember eating.




Robertj21a

16,477 posts

105 months

Thursday 22nd February 2018
quotequote all
Vaud said:
Many large businesses lease premises, laptops, servers, vehicles, etc...
You just beat me to it. I was going to suggest that there are many reasons for companies to lease rather than buy - and outsource rather than employ.

Digga

40,317 posts

283 months

Thursday 22nd February 2018
quotequote all
Shakermaker said:
Vaud said:
vikingaero said:
It's a company. Nothing is owned. Warehouse leased, vehicles leased, everything they can lease they will. If they could get away with leasing paperclips they would.
Many large businesses lease premises, laptops, servers, vehicles, etc...
Exactly. Extremely common and sensibleshort term business practice.
On a long enough timeline, you will easily pay more rent, let alone reparations, on rented buildings.

However, we all know how most firms are run - maximising dividend and perks for the management.

HTP99

22,547 posts

140 months

Thursday 22nd February 2018
quotequote all
Pebbles167 said:
I had a KFC today for the first time in years. Got the 'Mighty bucket for one'.

I have to say, I can see why everyone is going nuts about the closures. That was without doubt, the tastiest chicken I can ever remember eating.
Give it an hour.

Fermit The Krog and Sexy Sarah

12,946 posts

100 months

Thursday 22nd February 2018
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DHL have done more for child obesity in two weeks than Jamie Oliver has done in 10 fking years.

techguyone

3,137 posts

142 months

Thursday 22nd February 2018
quotequote all
HTP99 said:
Pebbles167 said:
I had a KFC today for the first time in years. Got the 'Mighty bucket for one'.

I have to say, I can see why everyone is going nuts about the closures. That was without doubt, the tastiest chicken I can ever remember eating.
Give it an hour.
Lol take no notice, KFC is perfectly fine, well usually... must admit, I'd pass for a bit - just to be safe. biggrin

Cold

15,246 posts

90 months

Thursday 22nd February 2018
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The surplus/undelivered chicken is still at Rugby and they (KFC) are having trouble even giving it away. Thousands of tonnes of the stuff may well simply go to waste, although perhaps not automatically into landfill straight away.

“There is a food waste hierarchy: you give to people first, then you give to animals, the next layer down is anaerobic digestion, when it is sent to a digester that will ferment the food and turn into energy, then there’s composting and then you are at landfill. There is plenty to do with food before you just throw [it] in the ground.”

Guardian link

The Surveyor

7,576 posts

237 months

Thursday 22nd February 2018
quotequote all
Digga said:
On a long enough timeline, you will easily pay more rent, let alone reparations, on rented buildings.

However, we all know how most firms are run - maximising dividend and perks for the management.
Its a price most businesses are happy to pay, leasing gives flexibility which you don't get with big capital expenditure commitments. For a company like DHL who are dipping in (and out) of individual sectors, making long-term financial commitments is restrictive.

Spend millions to build a new chicken distribution centre for the KFC contract, or lease one?

techguyone

3,137 posts

142 months

Thursday 22nd February 2018
quotequote all
they ought to lease a few more centres from the look of things...

Vaud

50,471 posts

155 months

Thursday 22nd February 2018
quotequote all
The Surveyor said:
Its a price most businesses are happy to pay, leasing gives flexibility which you don't get with big capital expenditure commitments. For a company like DHL who are dipping in (and out) of individual sectors, making long-term financial commitments is restrictive.

Spend millions to build a new chicken distribution centre for the KFC contract, or lease one?
Quite. What is the business case to own land and build a dedicated facility? 25 years? 40 years?

With contracts at 3-5 years (?), why take that business risk...

HTP99

22,547 posts

140 months

Thursday 22nd February 2018
quotequote all
techguyone said:
HTP99 said:
Pebbles167 said:
I had a KFC today for the first time in years. Got the 'Mighty bucket for one'.

I have to say, I can see why everyone is going nuts about the closures. That was without doubt, the tastiest chicken I can ever remember eating.
Give it an hour.
Lol take no notice, KFC is perfectly fine, well usually... must admit, I'd pass for a bit - just to be safe. biggrin
I actually like KFC; standard boned stuff and I love the BBQ beans, however within the hour my lips are dry and I'm as thirsty as an Etheopian, it's all the bloody salt!


vikingaero

10,329 posts

169 months

Thursday 22nd February 2018
quotequote all
Digga said:
Shakermaker said:
Vaud said:
vikingaero said:
It's a company. Nothing is owned. Warehouse leased, vehicles leased, everything they can lease they will. If they could get away with leasing paperclips they would.
Many large businesses lease premises, laptops, servers, vehicles, etc...
Exactly. Extremely common and sensibleshort term business practice.
On a long enough timeline, you will easily pay more rent, let alone reparations, on rented buildings.

However, we all know how most firms are run - maximising dividend and perks for the management.
Exactly in some cases leasing makes sense. But my view of that is changing more and more. Did some work for a cash and carry last year. They've been on the site for 30 years+. They lease and fully repair. Current rent for the last 5 years is around £1m. Freehold of the site was sold to an investment firm for £12m. They could have bought it for peanuts years ago and for the last x years have effectively been trading rent free. Except to the wky beanies that's an asset that could be exploited. But more and more UK/Euro firms think like that. And the Middle Eastern and Asian investors are snapping them up.

Same with restaurants. In ye olden days, guy buys an Italian restaurant, runs it himself/with family, food is good, makes a steady living, freehold going concern when he retires. Now we have cocaine raddled turtle necked jumper marketing execs creating a restaurant brand, leasing premises/equipment, standard Bidfood portion control, high staff turnover, deputy manager, manager, regional manager, UK manager, board of directors, PR companies, brand licencing, all being paid from that same bowl of pasta. Restaurant closes.

SeanyD

3,375 posts

200 months

Thursday 22nd February 2018
quotequote all
techguyone said:
Who will foot the "£1 million/day" cost?
At least pinstripe cecil from Ivory Tower head office, with his clipboard and microsoft surface, has knocked 2.5p off an order by switching carrier.

Not that I'm in anyway bothered, KFC is disgusting, scruffy, no customer service skills, and the once every 5 years when I do try it, goes through me faster than a GT3 RS.