Why fast-food companies like KFC and Chick-fil-A are betting on chicken tenders again

Natalie Rice
CNBC
The snack, a $US6 billion category for fast food, has transcended the kid’s menu. 
The snack, a $US6 billion category for fast food, has transcended the kid’s menu.  Credit: Ross Swanborough/The West Australian

Fast-food companies like Yum! Brands’ KFC and McDonald’s are getting back into chicken tenders as a way to attract consumers with a low-risk, high-reward bet on a familiar favourite.

Nearly half of all fast-food restaurants served the chicken item as of the third quarter, up 5.7 per cent from the same period in 2019, according to Technomic’s Ignite Menu data. More eateries are adding chicken tenders to other dishes like salads and wraps.

Taco Bell, also owned by Yum! Brands, has been testing chicken strips in tacos and burritos. McDonald’s says it’s also testing out versions of its McCrispy sandwich, which will be available in nearly every global market by the end of 2025.

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The snack, a $US6 billion category for fast food, has transcended the kid’s menu.

Just look at the success of Raising Cane’s, which offers a menu of entirely chicken fingers. The company reported its first billion-dollar quarter at the start of this year. Its same-store sales and traffic grew by double-digits during the third quarter.

That’s because of the product’s taste and value, which have turned customers into loyal fans, said Raising Cane’s co-CEO AJ Kumaran.

“They’re looking for everyday value. They’re not looking for a gimmick,” said Kumaran. “And we can deliver that. So we are, because of that, pretty bullish about where we are and how we will continue to deliver on that promise.”

In October, KFC kicked off a “chicken tenders battle” campaign for its new tenders, featuring a satirical ad that calls out its rivals. KFC representatives also visited locations of Popeyes (owned by Restaurant Brands International), Chick-fil-A and Raising Cane’s in Baton Rouge, New Orleans and Atlanta to pass out free KFC samples in front of the competitor stores.

Catherine Tan-Gillespie, the company’s new US chief marketing officer, was hired less than two months prior to the launch.

“We have the world’s best-tasting fried chicken tenders, so I felt that we should kick off a fight,” she said.

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