KFC expands spin-off restaurant concept amid plunging sales

It's a smart pivot for the struggling brand.

May 6, 2025 - 14:41

KFC expands spin-off restaurant concept amid plunging sales

The past few years have been tough on restaurants, and even fast-food joints haven’t been spared.

Inflation has changed the way consumers spend their money. Even though fast food is known as an economical alternative to casual dining, the cost of picking up dinner still exceeds the cost of a cheap home-cooked meal – especially if you’ve got a Costco membership and can load up on groceries in bulk at very low prices.

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That’s why a lot of dining establishments have needed to change course in the past couple of years, whether by innovating their menus or introducing new perks and rewards programs to keep customers coming back.

At a time when food prices are still rising, and more hikes could be in store once tariff policies come to a head, restaurant chains must stay in tune with consumers’ needs. And it’s equally important that they get creative as needed to keep up with their own competition.

KFC expands spin-off restaurant concept.
Image source: Jeff Greenberg/Universal Images Group via Getty Images

It’s been a rough go for KFC

During the first fiscal quarter of 2025, Taco Bell was Yum Brands' shining star. Same-store sales increased by an impressive 9%.

KFC, on the other hand, experienced a 1% decline in U.S. same-store sales. And that's alarming, given that chicken is such a staple protein within the restaurant space.

Circana reported last month that among quick service restaurants and chicken chains, KFC had fallen into fifth place in terms of consumer spending, trailing behind competitors such as Popeyes, Chick-fil-A, Raising Cane’s, and Wingstop.

KFC has long promoted itself as a value brand known for its classic comfort menu. But KFC needs to spread its chicken wings if it wants to succeed in an exceedingly competitive space.

KFC branches out with new restaurant concept

In late 2024, KFC introduced a restaurant spinoff called Saucy.

Saucy's menu centers on chicken tenders, and the draw is the restaurant's array of irresistible dipping sauces. The menu also features a fun mix of teas and refreshers.

“Everyone is obsessed with sauce – more is more,” said KFC Chief New Concept Officer, Christophe Poirier in the company's Saucy announcement. “With Saucy, we’ve taken KFC’s famous Original Recipe and amplified it with a brand-new concept that lets consumers play with flavor."

At Saucy's, dipping sauce is indeed the hook. Customers can choose from mouth-watering flavors that include:

Chimichurri Ranch
Jalapeno Pesto Ranch
Spicy Mango Chutney
Smoky Bacon Ranch
Sweet Teriyaki
Thai Sweet 'N Spicy

Meanwhile, Saucy's beverage lineup is the perfect complement to its dipping sauce varieties. Diners can cool their taste buds with flavors such as peach-mango lemonade and classic iced tea.

At a time when sales are hurting, KFC has a real opportunity to use Saucy to attract customers and elevate its brand. So far, Saucy sales have been impressive, so much so that the company is aiming to open at least 20 more restaurants.

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At a time when there's an abundance of chicken chains saturating the market, Saucy has the potential to help KFC revitalize its brand. The question, though, will be whether consumers need yet another chicken joint, or whether the bold flavors of Saucy's dipping sauce lineup are able to set it apart from the competition.

“Saucy is unlike anything else in the market, and the experience it provides is in a class of its own,” said Poirier. “When you’ve already mastered great chicken, the sauce gets to be the fun part.”