KFC Tests New Restaurant Concept to Revitalize U.S. Fried Chicken Market

KFC has launched a new restaurant concept in McKinney, Texas, aimed at reclaiming its leading position in the U.S. fried chicken market, which has seen increased competition. The experimental location, named Open House, debuted Thursday and includes offerings new to the brand in the U.S., such as breakfast service and extended operating hours.

The Open House menu features an expanded selection of tenders and sauces, new side dishes including fried green beans and spicy pickles, and a variety of new beverages like boba-filled refreshers and milkshakes with crunchy toppings. The restaurant design incorporates double drive-thru lanes and a mobile order pickup station. It also encourages a sit-down experience, with digital kiosks for ordering and employees delivering food to tables, alongside amenities like a photo booth and branded merchandise.

KFC Chief Concept Officer Christophe Poirier stated that the company aims to make the fast-food experience more engaging, drawing inspiration from sectors like retail and technology. The goal is to enhance hospitality by automating ordering processes, allowing staff to focus on customer service and create a more positive dining atmosphere.

While KFC has seen strong international growth, with China representing nearly 40% of its global restaurants, its U.S. market share has faced challenges. Competitors such as Chick-fil-A and Popeyes expanded significantly in the 2010s, and newer chains like Raising Cane’s and Dave’s Hot Chicken have gained traction by focusing on chicken tenders and specialized sauces. McDonald's also announced plans to introduce hand-breaded chicken, further intensifying competition.

Historically, KFC was a pioneer in the fast-food fried chicken industry, founded by Harland Sanders in 1930. The brand, now owned by Yum Brands, operates over 34,000 restaurants in more than 150 countries. However, its U.S. market share has declined from 20% in 2015 to an estimated 8% by 2025, despite overall growth in the U.S. chicken chain market.

KFC has been addressing these challenges through various strategies, including closing underperforming U.S. locations and menu innovation. A previous concept store in Florida, Saucy by KFC, explored expanding the brand's sauce and tender offerings. The focus on beverages in the Open House concept stems from research indicating that drink selections are a key factor for younger consumers when choosing dining options.

Company representatives emphasized that the new initiatives are intended to complement the brand's heritage, including Colonel Sanders’ original recipe, rather than replace it. KFC plans to continue offering traditional items like bone-in chicken and gravy while introducing more choices to cater to evolving consumer preferences.