No more KFC on Deliveroo as the Colonel chases ‘better commercials’

Fried chicken favourite KFC is ending its relationship with Deliveroo in a blow to the London-listed delivery outfit’s customer offering.

News of the change has been circulated to KFC staff, with the restaurant choosing to focus its efforts on Uber Eats and Just Eat, City PM has learned.

The company told staff it intends to increase the percentage of orders it receives directly “alongside better commercials with aggregators.”

Industry sources told City PM that fast food outlets such as KFC and its bigger cousin McDonald’s are amongst the most popular restaurants on delivery platforms.

KFC currently also holds a partnership with rival delivery service Just Eat and Uber Eats.

The move comes as Deliveroo increasingly focuses on adding to its rapid grocery delivery offerings, having added partnerships in recent months with Waitrose and other grocery players.

Deliveroo, told City A.M that  its focus is providing great value on its platform and partnering with restaurants and grocers who “share the same outlook”.

“We were pleased to be able to offer KFC the opportunity to bring down commission rates by improving their service for our shared consumers.”

“We regret that KFC has refused to agree to these terms at this time.”

They added: “We will continue to invest in promotions for consumers and will work with our restaurant and grocery partners to ensure they’re offering consumers excellent value and great service.

“With thousands of incredible chicken restaurants on Deliveroo, including many that are only available on Deliveroo, there’s a huge selection for people to choose from.”

The British firm, which floated on the London market two years ago, has just begun showing signs of recovery after a lull in sales after the pandemic.

In a third quarter update, the company said that revenue in its UK and Ireland arm grew by a steady three per cent to £297m, but internationally it fell by seven per cent. 

Deliveroo also recently upped its profit guidance for the year to a range of £60-80m, ahead of a previous range of £20-50m.

The company’s share price closed down 1.44 per cent today.

A KFC spokesperson told City A.M: “KFC has confirmed that it will be parting ways with Deliveroo, so from 26 October 2023 customers will no longer be able to order its finger lickin’ fried chicken on the Deliveroo platform.”

“However, KFC will still be available through Just Eat , Uber Eats and on KFC Delivery – or by visiting a KFC restaurant in-person.”

They added: “KFC will now be focusing its delivery offer on its own-delivery channel and with aggregator platforms Just Eat Uber Eats – but wants to thank Deliveroo’s riders for their hard work in helping to deliver its finger lickin’ fried chicken to fans across the country.”

“We continuously review our portfolio of delivery options to ensure we’re providing the right offer across all the right channels for our fans.”