KFC Tests Sit-Down Restaurant Concept in Texas to Revitalize U.S. Business
The experimental 'Open House' location in McKinney features breakfast, boba drinks, table service, and unique seating arrangements.
KFC is experimenting with a new restaurant format in McKinney, Texas, called Open House, as the fried chicken chain seeks to boost its U.S. business and attract customers throughout the day. The 3,400-square-foot location, which opened on September 22, can seat 52 people and operates from 6 a.m. to midnight, allowing for the testing of breakfast, brunch, afternoon snacks, and late-night offerings.
Expanded Menu and Service Options
The Open House menu introduces several departures from KFC's traditional offerings. Breakfast items include bacon-and-egg sandwiches, a fried chicken breakfast sandwich, hashbrown sticks, and mini cronuts, alongside coffee and iced lattes. "Customers expect bacon and eggs for breakfast, but it wouldn't be KFC unless we included fried chicken," KFC U.S. president Catherine Tan-Gillespie told Restaurant Dive.
The location also features premium beverages such as boba refreshers, shakes, and lemonades, along with new sauce flavors like jalapeño ranch, sweet heat ranch, and garlic parmesan. Beyond the menu, KFC is testing enhanced dine-in services, including table service, patio seating, "celebration booths," and "cozy corners," aiming to offer a more comprehensive dining experience than the typical grab-and-go fast-food model.
'AUV-Maxxing' Strategy
KFC refers to this approach as "AUV-maxxing," a strategy intended to increase average unit volume by creating more reasons and occasions for customers to visit. "We want to open up as much as we can in terms of driving new channels, driving new day parts, driving new menu options, driving new experiences, [and] new occasions," Tan-Gillespie stated.
The chain is also incorporating technology, such as kiosks and AI tools developed through its parent company Yum Brands' partnership with Nvidia. These tools are designed to free up employees to focus on customer service, delivery drivers, and mobile order pickups.
KFC aims to provide a "fast casual experience without the fast casual price tag," keeping prices comparable to other KFC locations. Tan-Gillespie described the Texas restaurant as "the Kentucky Fried comeback made real in one restaurant" and stated that it is "a real restaurant built to learn."