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KFC shuts more stores in chicken crisis | KFC shuts more stores in chicken crisis |
(35 minutes later) | |
KFC has closed more of its outlets in the UK after delivery problems meant it ran out of chicken. | KFC has closed more of its outlets in the UK after delivery problems meant it ran out of chicken. |
Its website shows that 575 of the fast-food chain's 900 outlets in the UK and the Republic of Ireland were shut as of 21:00 on Monday night. | Its website shows that 575 of the fast-food chain's 900 outlets in the UK and the Republic of Ireland were shut as of 21:00 on Monday night. |
That compares with 562 that were closed at 15:45 on Monday. | That compares with 562 that were closed at 15:45 on Monday. |
Last week, the fried chicken chain switched its delivery contract to DHL, which has blamed "operational issues" for the supply disruption. | Last week, the fried chicken chain switched its delivery contract to DHL, which has blamed "operational issues" for the supply disruption. |
It is not yet clear how many outlets will open for business later on Tuesday. | It is not yet clear how many outlets will open for business later on Tuesday. |
How many KFCs are open? | How many KFCs are open? |
By totting up the latest figures on the firm's website, it seems 325 of the outlets were open as of 21:00 on Monday night, compared with 338 at 15:45 on Monday. | By totting up the latest figures on the firm's website, it seems 325 of the outlets were open as of 21:00 on Monday night, compared with 338 at 15:45 on Monday. |
However, even some of these are only offering a limited menu or have shorter opening hours. | |
KFC has set up a web page where "fans" can find their nearest outlet that is still open. | KFC has set up a web page where "fans" can find their nearest outlet that is still open. |
What caused the problems? | What caused the problems? |
Until 13 February, KFC's chicken was delivered by specialist food distribution group Bidvest. | |
But after the contract switched to DHL, many of the food giant's outlets began running out of chicken products. | But after the contract switched to DHL, many of the food giant's outlets began running out of chicken products. |
The GMB union said it had tried to warn KFC that switching from Bidvest to DHL was a mistake. The change led to 255 job losses and the closure of a Bidvest depot, said Mick Rix, GMB national officer. | The GMB union said it had tried to warn KFC that switching from Bidvest to DHL was a mistake. The change led to 255 job losses and the closure of a Bidvest depot, said Mick Rix, GMB national officer. |
He said: "Bidvest are specialists - a food distribution firm with years of experience. DHL are scratching around for any work they can get, and undercut them. | He said: "Bidvest are specialists - a food distribution firm with years of experience. DHL are scratching around for any work they can get, and undercut them. |
"KFC are left with hundreds of restaurants closed while DHL try and run the whole operation out of one distribution centre. Three weeks ago, KFC knew they had made a terrible mistake, but by then it was too late." | "KFC are left with hundreds of restaurants closed while DHL try and run the whole operation out of one distribution centre. Three weeks ago, KFC knew they had made a terrible mistake, but by then it was too late." |
The distribution network uses software developed by the firm Quick Service Logistics (QSL). | The distribution network uses software developed by the firm Quick Service Logistics (QSL). |
DHL said: "Due to operational issues, a number of deliveries in recent days have been incomplete or delayed. We are working with our partners, KFC and QSL, to rectify the situation as a priority and apologise for any inconvenience." | DHL said: "Due to operational issues, a number of deliveries in recent days have been incomplete or delayed. We are working with our partners, KFC and QSL, to rectify the situation as a priority and apologise for any inconvenience." |
How long are the problems likely to persist? | How long are the problems likely to persist? |
A spokesman for the firm said as of Monday, it was "too early to tell" how long the problems would go on for. | A spokesman for the firm said as of Monday, it was "too early to tell" how long the problems would go on for. |
How much is it likely to cost KFC? | How much is it likely to cost KFC? |
KFC's spokesman said he did not have a figure, but any calculation is likely to be complicated by the fact that 80% of KFC's outlets are run by franchisees. | KFC's spokesman said he did not have a figure, but any calculation is likely to be complicated by the fact that 80% of KFC's outlets are run by franchisees. |
Some media reports say the crisis could be costing the chain £1m a day, but any such figure at this stage is likely to involve a large amount of guesswork. | Some media reports say the crisis could be costing the chain £1m a day, but any such figure at this stage is likely to involve a large amount of guesswork. |
What's happening to KFC staff? | What's happening to KFC staff? |
Workers are being encouraged to take holiday, but would not be forced to do so, the company has said. | Workers are being encouraged to take holiday, but would not be forced to do so, the company has said. |
"Our teams are working flat out all hours to get the rest back up and running as soon as possible - but it's too early to say how long it will take to clear the backlog." | "Our teams are working flat out all hours to get the rest back up and running as soon as possible - but it's too early to say how long it will take to clear the backlog." |
It said that in the restaurants owned by the chain, staff on short-term contracts would be paid the average hours worked per day over the past 12 weeks, while those on salaries would be paid as normal. | It said that in the restaurants owned by the chain, staff on short-term contracts would be paid the average hours worked per day over the past 12 weeks, while those on salaries would be paid as normal. |
"Franchisees will be seeking their own independent advice, but we're encouraging them to adopt this policy too," said the chain. | "Franchisees will be seeking their own independent advice, but we're encouraging them to adopt this policy too," said the chain. |
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