In 2018, Yum! Brands faced a serious supply chain problem in the UK. A supplier switch gone wrong! The move was originally intended to save costs, but quickly became a national crisis. When the company counted the cost of the switch, the KFC’s supplier change had done more harm than good.
KFC, one of its most popular brands, had to close hundreds of locations. The reason? No chicken. This disruption following the supplier change became a live case study in poor planning, supplier mismanagement, and the dangers of having a single point of failure.
However, it also became an example of fast recovery and learning from mistakes. And this article will take it deeper, showing African supply chains the risk of poor supplier planning and how careful strategy and transparency can turn a disaster into a reset.
The KFC’s Supplier Change That Led to a Crisis
Yum! Brands operates KFC, Pizza Hut, and Taco Bell in the UK. In 2018, the company switched from Bidvest, a foodservice logistics veteran, to DHL, a global logistics player. The idea was to save money by consolidating delivery through one large depot in Rugby.
But from day one, things went wrong:
- Restaurants didn’t receive enough chicken.
- DHL’s new warehouse couldn’t handle the flow.
- Drivers were delayed. Orders didn’t match stock.
Within 48 hours, the supply chain collapsed. Over 600 KFC locations closed. In total, more than two-thirds of all UK KFC stores were offline. Meanwhile, Pizza Hut and Taco Bell operations were mostly unaffected.
This became known as the KFC chicken shortage UK 2018, and the worst fast food delivery disruption in recent UK history.
Read more: How Starbucks’s supply chain navigated the 2008/2009 crisis.
But What Caused the Supply Chain Breakdown?
The problems with the Yum! Brand supplier change decisions weren’t random. They followed a pattern of missteps:
1. Cost vs Service Trade Off
Choosing DHL mainly for lower costs backfired, as they lacked the specialized experience that Bidvest had in managing nationwide fresh food distribution. DHL had less experience managing fresh food at this scale. Their model worked in parcels and retail, but not for live foodservice delivery. Bidvest understood the timing and volume needed. DHL didn’t.
2. Single Hub Supply Chain Risk
All deliveries came from one depot. So there was no backup when a traffic jam on the M6 delayed trucks. If the warehouse stopped, the restaurants stopped. This model had no tolerance for error.
3. Logistics Planning Failure and Ignored Warnings
The IT systems between KFC and DHL didn’t sync. Orders were missed or incomplete. Staff at the new hub were undertrained. Goods were stored incorrectly. Some food spoiled. The GMB union warned months before the switch that DHL lacked the infrastructure. They said the change could lead to a supply chain disaster. Yum! didn’t listen.
4. Poor Supply Chain Handover and Resources
There was no transition overlap. KFC cut off Bidvest completely and went live with DHL overnight. The new system failed under real pressure. DHL’s Rugby depot lacked enough staff and proper training, leading to mishandling, spoilage of goods, and an inability to manage the scale of fresh food logistics.
The Response and Recovery From KFC’s Supplier Change Nightmare
When the public realized there was no chicken at KFC, they were shocked. Some went as far as calling the police. Media outlets called it the 2018 KFC chicken crisis. However, Yum! Brands’ supply chain responded fast and made some smart decisions. Some of those included:
- Ran 24/7 delivery efforts to restock.
- Published a live list of open stores daily.
- Simplified menus at stores that reopened.
- Paused all advertising during the shortage.
- Rehired Bidvest for part of the country to support DHL.
Most importantly, KFC ran a public apology campaign. They published an ad showing a KFC bucket with the letters switched to “FCK”. Under it: “We’re sorry.” The public loved it. It was funny and honest, and it showed that the brand cared.
Behind the scenes, Yum! Brands supply change reached a settlement with DHL. Franchisees received compensation. And in a few weeks, 97% of restaurants were back open.
Read more: How GlaxoSmithKline’s Supply Chain Tackled Complex Distribution in Zambia
Strategic Supplier Shifts After the Crisis
KFC’s supply chain operations did not return to business as usual. They changed their entire strategy, starting with dropping DHL and giving full control over their distribution to Bidvest (now Best Food Logistics). They also:
- Stopped using single-hub models.
- Built supplier transition testing plans.
- Returned to a multi-supplier distribution strategy.
- Improved risk planning with backup delivery routes.
- Created more internal oversight on logistics and vendor handoffs.
By 2020, Yum! Brands had partnered with Booker (owned by Tesco) to increase delivery strength. KFC and Pizza Hut both used this network. The supply chain was no longer fragile. It was flexible. That was the biggest shift.
What African Supply Chains Can Learn from KFC’s Supplier Change Crisis
The Yum! Brands logistics failure offers direct lessons for African supply chains.
1. Choose Experience, Not Just Price
DHL won the contract with a lower bid. But they lacked the know-how. Bidvest had the right systems. Cutting corners on experience created a supply crisis.
2. Avoid Single Points of Failure
Don’t run all your deliveries from one warehouse. Pick n Pay learnt this on time and made adjustments. It changed their entire supply chain operations. Spread your risk across locations. If one fails, others keep going.
3. Plan Supplier Transitions Carefully
If you must switch suppliers, make sure it is necessary and that the new suppliers have the capacity to replace the old. Never switch overnight. Run pilots. Test routes. Keep your old partner in place during the transition.
4. Keep Internal Teams Ready and Always Have a Plan B
Monitor what vendors do. Don’t outsource everything. Build systems that alert you before failure happens. Whether it’s transport, warehousing, or IT, build backups. Even if you never use them.
5. Be Honest With Customers
When things go wrong, admit it. KFC’s FCK campaign earned respect. Silence or spin hurts more than the truth.
Read more: How Zipline’s drone technology is transforming healthcare logistics in Africa.
How African Companies Can Apply These Lessons
Supply chain disruption isn’t a “maybe.” It’s a “when.” The best teams prepare for it with the right people. Here is how to do that:
- Train local staff in the supply handover steps.
- Make emergency planning part of supplier contracts.
- Communicate with customers directly during disruptions.
- Work with multiple suppliers and regional hubs where possible.
- Use digital logistics tools that are affordable and local. GPS delivery trackers and SMS updates build visibility.
Final Thoughts
Although it was avoidable, the KFC’s supplier change in 2018 forced the shut down hundreds of KFC stores across the U.K. Poor transition planning, a risky single-hub model, and overconfidence in a cheaper supplier caused the collapse.
But the recovery showed what’s possible. Yum! owned the mistake. It adjusted the system. It gave back control to trusted partners. And most importantly, it made sure it wouldn’t happen again. African supply chains can learn from this case. Whether in food, manufacturing, or retail, supplier management and changes must be handled carefully. Because in the supply chain, one wrong move can close every door. Conversely, one right step can open many more doors.
Obinabo Tochukwu Tabansi is a supply chain digital writer & ghostwriter helping professionals and business owners across Africa explore various strategies that work and learn from the success and failures of various supply chains across the globe. He also ghostwrites social content for logistics & supply chain businesses
