Rotating menu items at fast food restaurants? Aren't they losing money?

I consider myself an expert in most matters of marketing, but both my friend and I are baffled by something we noticed at KFC and other similar fast food places.

KFC is once again bringing back their popcorn chicken for a ‘limited time’. Once upon a time, this meant “were trying it out to see if it sells, and if it does, it will be put on the menu permanently”, or it meant “This is a seasonal product that is only popular/ available during a specific time of the year - hence the limited time”

Lately, places like KFC seem to have an item available for three months then stop carrying it for three months, then it’s back for the next three months, etc. What’s the logic in that?

I think that irritates customers. I have actually gone to a KFC looking for a specific item (like the popcorn chicken) only to be told they weren’t carrying it ‘this month’ and that they don’t know when exactly it’s coming back. As a result, they lost my sale. Same thing has happened before with the honey BBQ wings. In the meantime, their staff has to constantly deal with changing menu items, which screws up ordering patterns down the supply chain, and they need to spend large amounts of money advertising that the item ‘is back’. So what gives? Yes, it allows the restaurant to advertise that they have something ‘new’ which presumably will make me want to go eat there to the exclusion of a competing food place, but if it’s just a recycled menu item, do customers really care? I would think a minimal increase in sales would be more than offset by huge advertising and stocking expenses, and that the sales spikes would decrease over time as customers stop viewing the item as ‘new’. Or are these items some sort of loss leader to just get you in the door?

Offering something for a limited time tends to spur people to get it while they can. As for the stock/supply problem, I suspect the distribution center simply drops off what they estimate to be three months’ worth of popcorn chicken/wings/whatever, and the franchise keeps the ads up until they run out.

They try new stuff to find a hit.

now as for bringing them back (wag comming) these items I would guess had lots of initial appeal but popularity quickly fell off. By bringing them back they are hoping to get that initial appeal again.

Well, Yarster, you know as well as I do that Mickey D’s and others of that ilk wouldn’t be doing it if they really were losing money, so I think it’s safe to assume that they’re at least breaking even on the deal.

And the local franchises don’t have to pay for any advertising expenses–when Mickey D’s brings back the icky pork rib sandwich yet again, it’s McDonalds Inc. who pays for the nationwide ad campaign. The Head Office even sends the local franchises the posters, etc. to put on the front windows.

And there aren’t really any problems with the ordering supply chain. Any McRibs that don’t sell, just stay in the freezer, and eventually get sent back to the central warehouse to await its next reappearance on the Golden Arch marquee (sigh).

And as for staff having to deal with constantly changing menu items–hey, all they have to do when you order is push the button that looks like the McRib. If they’re not aware that it’s been added to the menu since yesterday, all they have to do is say, “Huh?” and you will point to the big lighted display behind them–“There, that one, there, that’s what I want”, and Einstein says, “Oh” and pushes the little button on the register that matches the picture on the big display. It’s a true No-Brainer.

Well if you’re s sucker like me it goes something like this:

me:" I’ll have the popcorn chicken with a coke please."

KFC: “We’re not selling popcorn chicken anymore…”

me: “Your not? Damn! just give me a three peice meal then…”

This way they don’t have to spend the time and effort to keep supplying their stores with the stuff. Yet they can still keep their customers like me to come in at least one more time.

I imagine part of it is also to encourage people to come in who are tired of the same old thing, and also because the menu can only be so large at one time. It just makes more sense to sell an amount of McRibs or whatever in a month, then switch to another product, and so on, rather than having all of those items at the same time (and suffer increased spoilage, decreased speed, not enough storage space, etc).