“Challenging Year” Sees KFC Sales Decline

July 5, 2011 | 52 Comments

kfc bucket of chickenKentucky Fried Chicken (Bermuda} said fiscal 2011 was a “challenging year” for the company as declining sales combined with increased staff costs resulted in a decline of $89,925 (-44.7%) in operating income.

The Chairman’s Letter to Shareholders said, “KFC has endured a rocky start to fiscal 2012 and continues to see a downward trend in sales together with expense control challenges continuing from the last two years.”

“With the decline in Hamilton cruise ship visitors, few major construction projects underway within Hamilton, a continuing outflow of guest workers from Bermuda, and difficult economic circumstances for many of our customers, it will be essential for KFC to adapt its operations and cost structures to these realities in order to maintain strength for the company, provide stable employment opportunities for its staff, and deliver an acceptable return to its investors. ”

KFC commenced discussions with the Bermuda Industrial Union [BIU] early in April 2011 regarding renewal of the company’s collective agreement for its unionised staff.

KFC said, “To date those discussions are ongoing. Our negotiating team has been given a mandate to reach a fair and economically sensible agreement with the BIU membership that respects the historical service of existing employees, the need for our staff to be fairly compensated, as well as the financial realities of KFC’s business operations and the economic climate of our marketplace.”

2011 sales were $5.032 million, down $249,390 (-4.7%) from the prior year. Operating expenses declined by $97,546 (-2.6%) as tight cost controls by management enabled declines in all expense categories except Payroll costs and benefits which increased slightly, year-over-year.

Net income for 2011 was $167,480 (vs. $234,656 in 2010) or $0.29 per share (vs. $0.40 in 2010) – a decline of $67,176, or $0.11 per share (-28.6%).

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  1. Concerned Bermudian says:

    Good. Ya'll need to get out of here with ya nasty greasy chicken anyways. Fattening up Bermuda one person at a time. We already got Ice Queen and all these other fast food places. So, sorry if you ain't making enough money but that's just our way of saying that we don't want you anymore.

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  2. Vote OBA says:

    How the hell did staff costs increase? They have nothing but foreigners working there!

    We need a tax of that fattening food anyway, sooner KFC goes the better!

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    • Concerned Bermudian says:

      That is not true. They do have a good number of Bermudians there, but most of them are miserable. There is one young lady down there, I must say, that is always very nice and has a pleasant attitude. It must be difficult working around grumpy people and people you cant understand.

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    • The Truth (One And Only) says:

      There are more Bermudians working there than foreigners Get your facts straight before shooting off your mouth..

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      • The Lie (Two And Many) says:

        There are actually quite a few DUAL citizens who work there, too...get YOUR facts straight!

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  3. The Rock says:

    i had KFC for lunch. iloveittttttt!!!!! lol.

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  4. KFC 4 LIFE says:

    If I knew that the world was ending in a week and had nothing to lose, I would ignore my friends/loved ones and eat KFC every minute of every hour until the grease seeped out of my pores by the gallon. It is by far the boastiest bird in the world! I hope they start having more specials to get their sales back up, because TRUST AND BELIEVE, I will leave my shame at the door and devour it carnally with an insane look in my eyes, not caring what people around me think of the crazy man with the chicken buckets for earrings.

    BIRDBIRDBIRDBIRDBIRDBIRDBIRDBIRD!

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  5. Itcouldhappen says:

    I will be the first to admit that KFC tastes great, but eating it along with a generally unhealthy diet can contribute to Obesity, diabetes, HBP, heart disease. A two peice dinner at KFC has over 1100 calories. (Not including the soda which has 25-20mg of sugar and the sodium content of one peice of meat is over 1200 mg). I'm just saying that overall, yes, KFC has to worry about thier bottom line - like any business, but it should also look out for the people they serve by finding ways to make thier product healthier. I'm just saying.

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  6. cocoa says:

    Wow! Imagine that! With the long lines I see often I was shocked to hear that the sales had declined! Come one every one go and get your "grease fix' at KFC! LOL!

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  7. Nutrition Guy says:

    The real funny thing is that some people eat KFC cos it is white meat and therefore supposedly 'healthy'. If you check the nutritional info of all the fast food franchises you will find that KFC is far far worse than any of the others. In fact every chicken dish has tons of fat. A Big Mac is far less than 50% fat yet it is not allowed into Bermuda because of it being unhealthy.

    KFC: Take white meat, soak it in fat, then deep fry it in, you guessed it, FAT! Serve it with fries - which are deep fried in, you guessed it, FAT!

    I don't like to wish misfortune on a Bermuda company but he sooner this horrible business goes broke, the better for all of us.

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    • KFC 4 LIFE says:

      NO WAY DUN! If KFC goes out of business, I'll cry until I die of dehydration. I may weigh 476 lbs. and have like three different heart conditions, but DANG IT, being obese is how I exercise (pun intended) my freedom to CHOOSE what I eat!!! I'M GONNA GO SPEND $100 THERE RIGHT NOW JUST TO SPITE YOU!

      BIRD BIRD BIRD BIRD BIRD BIRD BIRD BIRDBIRD BIRD BIRD BIRDBIRD BIRD BIRD BIRDBIRD BIRD BIRD BIRDBIRD BIRD BIRD BIRDBIRD BIRD BIRD BIRDBIRD BIRD BIRD BIRDBIRD BIRD BIRD BIRDBIRD BIRD BIRD BIRD!

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  8. Sheriff says:

    The line is always long..

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  9. Shark says:

    This is a good thing

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  10. Aruna Dismont says:

    ALL HAIL MR CHICKEN.

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  11. Cd says:

    No wonder operating income is imploding. I implore you to go in. The staff can't understand orders. Every second word is "huh". It's appalling. Maybe they should hire some [edited] Oh I have been racist. The Bernews moderator may squeal in this politically correct phoney landscape. [correct, moderator squealed]

    Look the bottom line is the food is crap, the service is rotten and the staff are dumb. There yar.

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  12. Cleancut says:

    The busiest place in town, just watch the volume of people walk in and out of those doors every day. Profits are down "LETS CRY WOLF"

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  13. Mike says:

    If this isn't an indictor of the bad economy in Bermuda, tell me what is.

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  14. Terry says:

    I prefer VFC.....detz rite....Viagra Fried Chicken,,,,,.......If you can't get it dahn in 4 hours......bwahaaaaaaaaaaa

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  15. Shut Yo Mouth... says:

    To stupid to serve fish ... get rid of the manager ... hire ART MEL .. Get some damn fish up in there....

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  16. Shut it down says:

    The source to why most people are over wieght in Bermuda.... Its not the main source, but I see the same faces going into that place everyday.....i cant wait until that place closes down and re-open to a healthy restaraunt. There is nothing on the menu that promotes a healthier lifestyle. Then you wonder why you kids are getting fat...becuase at 3:30 your kids are KFC or MR Chicken munching on some greast fries, soda, and fried chicken nuggets.

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    • Shuddapp says:

      Ohh be quiet... Not everyone lives life following a dietary handbook. The way i see it is eat what you want when you want life is to short, were all going to die anyway. Hence, just because you dont like it dont try to sway all the rest of us into little health nuts, because KFC is finger licking good yes i said it. And thats coming from someone who is 135 pounds and fit, its all about moderation.

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    • OMG says:

      Hmm, I didn't know soda was greasy. I gotta look at the back of the tin next time.

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  17. Triangle Drifter says:

    Chicken sales are down in Bermuda. Now THAT is telling you something about the state of the economy.

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  18. The Truth (One And Only) says:

    What is wrong with all you health nuts? Eat KFC in moderation..and if some one wants to eat it everyday who are we to tell them not to..There are many other things out there that are more harmful to ones health for example: cigarettes,alcohol and crossing the street etc. Come on people its freedom of choice.

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    • My two cents says:

      Fried food can be used in moderation? Oh so can a lot of other things. You mean we don't need to make fried food illegal since it is contributing to higher insurance premiums due to the obesity in people who don't know what moderation is? Should we just let anyone put anything into their bodies EVEN if it has the possibility of having negative side effects for society? Huh, what a concept.

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      • Politely Pompous says:

        Its called freedom of choice. If i feel that something is not good for you to eat Do i have the right to tell you not to eat it. Come on now think about it for a moment. I don't give a dam what anyone eats as long as you are not trying to shove it down my throat.

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        • My two cents says:

          EXACTLY, totally agree, now WHY is it that you or I or anyone else for that matter has the right to stuff their faces and become obese, thus increasing us healthy people's insurance premiums due to the increase in metabolic syndrome, yet a person does not have the right to smoke weed? This is the EXACT hypocrisy we are talking about here. I understand weed is illegal, but WHY as health concerns are obviously null and void when discussing the legitimacy of this law because we can freely stuff our faces, smoke as many cigs, and drink ourselves into oblivion if we want and that is okay in our society. So HOW is it not okay to smoke weed? If you believe in a person's right to stuff their face and be fat, then people CAN'T possibly think that marijuana prohibition is fair and just. Otherwise they are a hypocrite. My post you responded was based on principal. People should be able to freely choose what they want to ingest in their bodies and that is why school children are allowed to buy soda and candy bars every day after school...

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  19. what the hell says:

    when they have no chicken sandwiches at 8pm...zingers..twisters etc...that is when I walked out with my $30 bucks....twice...don't waste my time anymore

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  20. Just Curious says:

    who cares!

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  21. raider says:

    3.3% profit margin? I think it's time for an audit of our local KFC!

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    • Um juss sane says:

      I dont believe!!!! I cant even get in de line its so long, and I def wont even think of standing in that long line around lunchtime.... somebodys bullsh....g!!! Or somebodys stealin, but in this day and age who's surprised?...On de flipside, Bermudas KFC is de best and I've tasted kfc in about three different states and its def not de same, anybody ever notice that?

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      • OMG says:

        KFC in Bermuda has always been better than overseas, especially Canada. But lately I have noticed that it has become very salty. Quality is going out the window.

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    • Jus' Askin' says:

      Sounds way off doesn't it? Who would want to continue operations with a profit of 3.3%? They may sell chicken, but something smells fishy ;-)

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  22. global village says:

    Propoganda.

    No way that place is making razor thin margin, look out for a "we need a Govt concession or bailout to keep the Bermudians employed" thats next you heard it here first!

    Double usa prices and losing money. Ya right.

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  23. Grease allowance says:

    I admit I enjoy KFC on occassion and would probably go more often if service wasn't completely incompetent. The cashiers are fine but the staff that are actually filling the orders are another matter.

    Even on those days that I decide that it's time for my monthly serving of grease if there are more than two or three people in line or waiting for their food it's off to somewhere else.

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  24. Act Like You Know says:

    What they need to do is start killing these wild chickens we have around here in bermuda, and put them in the fryer. Now that will save them some money, barn yard chicken. Now that will finger licking good, eating local bird........

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    • KFC 4 LIFE says:

      YES-I, BREDREN!

      They could market it as "Local Gourmet Game Bird...Sinewy & Delicious!" We could even create a new Government branch to specifically round up de chickens!

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  25. Original (Original) says:

    Can't believe people spend $5 million a year on that crap. Perhaps people are catching on to the fact that it is so unhealthy.

    Churchy type people still go there Sundees tho.

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  26. Malachi says:

    Because sales are down it doesn't mean that they are not making money! The place is chock a block seven days a week. I am guessing that KFC's problems are more managerial than anything. You may recall a few years back they were having financial difficulties in spite of the fact that the place was full every day! At their prices, I find it hard to believe they could lose money.

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  27. Jujusimpson says:

    I don't consider myself overweight and I don't diet, I just eat everything in moderation and smaller portions. There is no need to hate and wish all those people to be out of a job. Frankly the staff is always pleasant and helpful to me. If anything it is the economy and the lack of construction work plays a bigger part than any of us realised before. Construction workers spend more in Bermuda than the high end earners therefore keeping the flow of money in places like KFC.
    I wish them well and hope they are around for a long, long time.

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  28. Overly Concerned says:

    It is incredible that the only "American" fast food place on the rock can't seem to get things right. Admittedly they have to contend with high cost of labour and the cost of their ingredients - as they are a franchise, they have to stick to the formula or risk losing their license. Still - a place that seemingly always has long lineups and no lack of business still can't make a profit. There's something wrong there.

    Haven't eaten there in over 5 years - I do still remember the "Pizza Hut" experiment in the 90's though. Too bad the pizzas were $30 - I do like a good 'ol pizza hut pie once in awhile.

    I doubt that opening the doors to other franchises would adversely affect the "local guy". It would be an overpriced fad and tempered by high prices - could you imagine paying $12 for a "super value meal?".

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  29. Question says:

    interesting !!! http://www.youtube.com/watch?v=O3tf34NzBuk

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  30. change says:

    STROKE JUST WAITING TO HAPPEN.

    Bermuda please look at this seriously. Forget the money side for a moment and just look at our health situation here. I am speaking first hand.

    Although, I was never a fan of all that greasy chicken, but I still live with pain, paralysis, and medical difficulties daily.

    Wake up BDA. It only takes about 10 minutes to boil some chicken at home. That is how long you wait at KFC. Think about your family and how they will have to care for you.

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    • Notorious says:

      Oh give it a rest!! There is nothing wrong with eating KFC in moderation. Even dietitians will tell you that you can eat junk food in moderation. If you have health problems it's most likely because you were eating unhealthy food often. You all ruined McDonalds for everyone and now want to complain about KFC. I don't even eat that crap because it makes you sick as a dog after you eat it but other people can eat it all they want.

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  31. Wuz Clafe??? says:

    *Awaits Clafe's comments*

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    • Clafe says:

      my bad bedren, but KFC iz a topic 2 nerr an derr 2 my hart 4 me 2 comment on dis story...i wuld probly end up offendin GUYZ wif my controvershal views.

      KFC is more important than d econmy, aducation, n infrastrucshur COMBINED

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  32. Don't want it... says:

    Nobody wants KFC's mutant 'chicken'!

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  33. New Day, New Thinking says:

    Do what you've always done, get what you've always got. KFC has got to change it's game. Look at all these posts of people enjoying this guilty pleasure. Now, they could offer an on-line order and "plain-paper" delivery service I'm SURE thier business would skyrocket. Imagine being able to order a 3 piece extra spicy delivered to you in secret.....no one needs to know....you're not hurting anyone....it's just a piece of chicken...keep it on the sly and let that chicken fry!

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    • sandgrownan says:

      And it would stop all the lardasses double parking on Queen St. becasue City hall car park is too far to waddle.

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  34. Somerset OG says:

    Let the fatties eat it until their hearts stop! Then I don't have to see jiggly arms, back fat and kangaroo pouches anymore! It's disturbing to see someone making snoring sounds while their eyes are open! Cheese and rice! !!!!!!!!!!
    Don't these look like drum sticks and chicken wings? !!!!!!!!!!!!!!!!!777777777777

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