KBP Foods, KFC’s largest domestic franchisee and one of the country’s largest restaurant franchisees, has laid off 29 corporate employees. According to a KBP spokesperson, the layoffs are part of a recent restructuring and equate to less than 9% of the corporate team and less than 1% of the franchisee’s more than 21,000 employees across its system.
The Kansas City Business Journal first reported the news last week, noting that the decision was driven by “inflation and consumer headwinds.”
KBP was founded in 1999 and has since grown its portfolio to include more than 830 KFC locations. Its KBP Inspired, KBP Bells, and KBP Foods entities also include Taco Bell and Arby’s locations, as well as dual-branded KFC/Taco Bell, KFC/Long John Silver’s, and KFC/A&W locations. The company’s scale has been forged largely through acquisitions, and the company most recently added Sonic Drive-In to its roster with the September purchase of 85 units in six states. That acquisition brought KBP’s restaurant count to more than 1,000 locations.
Last year, the company opened a new $40 million headquarters in Leawood.
The company’s layoffs come amid sales struggles at KFC U.S. During the third quarter, the system reported a same-store sales decline of 5%, which followed -7% and -5% in the preceding two quarters.
During KFC parent company Yum Brands’ earnings call earlier this month, chief executive officer David Gibbs said the chain’s challenges are driven by a “complex consumer environment,” while its limited-time offers underperformed expectations. He added, “we have fantastic leaders in place working on revised strategies to create a step-change in results.”
Contact Alicia Kelso at [email protected]
