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Distribution Strategy: Inside KFC Uganda’s Expansion Strategy

One 23rd May 2016, Pizza Hut launched in Uganda with razzmatazz that included Ugandan government officials such as Amelia Kyambadde and Jim Muhwezi. KFC Uganda had opened earlier on 10th December 2013. These two food chains drew optimism as many people announced the full arrival of Uganda’s middleclass. It’s now 2024, and although Pizza Hut has remained stagnant with no new branch openings, KFC Uganda is on new steroids.

The fast-food chain has now changed its distribution strategy to target the main traffic roads. KFC first set its guns on Kampala-Jinja road with branches at Banda (Kireka), and one at Lugogo Mall. When it opened in Kyanja, many though that the new distribution strategy was to target the emerging middle-class suburbs. Yet, KFC seems to be targeting high traffic roads.

In its new expansion strategy, KFC Uganda has opened a branch along Masaka road, that is KFC Busega. On the Mityana road, KFC is in the final stages of completing its Bulenga branch (as shown in the photos). Some market experts say, KFC is also targeting the travellers. “Families want to catch a quick meal as they travel upcountry, and these two roads account for most traffic in Uganda, KFC Uganda wants to be there to serve them.”

KFC Uganda is thus also targeting the seasonal booms from the Easter Season, and the Christmas season when Ugandans usually travel in droves to their upcountry homes. KFC is coming in as the option to that roadside chicken. To say, look, we’ve guaranteed the quality, the speed of service, and here’s some bucket of chicken for you and your crew. What KFC Uganda is looking at is coverage, that when you think of a quick meal, there should be a KFC branch you could quickly drive through. If you miss one on this road, you should be able to catch another on the next corner.

However, some have wondered why Nansana Road is yet to have a KFC branch despite their high traffic. Well, KFC has a way it chooses its next location. And one of the drivers is density and proximity of other KFC branches. KFC also considers the issue of safety. Nansana-Hoima road is currently red-flagged as far as crime is concerned. However, many believe that once the success of Bulenga and Busega registers, it’s just a matter of time before coverage expands to this Hoima road.

KFC rides on predictability and consistency of its signature chicken. The branches are also built and designed to have the same recognizable look and feel. As more and more companies and people move away from the main city centre, KFC Uganda must be right on its money with this new distribution drive. To the people of Hoima road, just a little patience. A little patience, even those of Kiira, Bulindo are still yearning.

Photo Credit: Philippa Nantamu