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Kenchic succumbs to competition closes shop to focus on processing

kenchic

Kenchic has been under intense competition from new entrants. Photo/ Eatout

Kenchic has announced it will close its franchise outlets from April 2016, citing the rapidly evolving fast food market in Kenya. In a statement seen by CapitalFM, Kenchic says it will now focus on its core business of chicken processing.

“Effective the 31st March 2016, Kenchic Ltd will discontinue the use of its brand Kenchic Inn. As per the MOU which stipulates that either side can give 30 days’s notice ending on the last day of the nominated month, Kenchic Ltd has as a gesture of good will extended this period until March 31st 2016,” said Philip Carolan, Operations Manager Processing & Sales Distribution.

Essentially, fast food joints branded with the iconic Kenchic logo and colours will cease to exist after the expiry of the MOU.

Kenchic has in recent years been scaling investments in processing and breeding with a Sh350M slaughter plant in Thika and a Sh1.5B hatchery in Athi River adding to the company’s four other plants in Naivasha and Kajiado.

The fast food arm of Kenchic, however, has been under intense competition from new entrants like KFC and growing outlets like Nandos and chicken inn. Mushrooming of similar fast food joints targeting the same clientele Kenchic had captured for years has also eaten into the firms market shatre.

With the current fast food markets evolving rapidly in Kenya, Kenchic limited has decided to withdraw its brand KENCHIC INN from the market and to concentrate on its core business of chicken processing.

“We would like to thank you for your support over the years; the relationship has been a long and successful one. Our product will still remain available to all, at the same pricing and we will continue to supply you as and when required,” said Carolan.

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