South Africa’s Quick Service Chicken Wars: A Deep Dive into Market Strategies

The Market Research Foundation (MRF), through their Marketing All Products Survey (MAPS) has released data on the July 2020 to June 2024 survey findings.

Taking a close look at what is happening in the quick-service chicken wars, KFC leads with a 25% market share. KFC is followed by Chicken Licken with 10% of the market followed by Hungry Lion with a 7% market share of the overall quick-service market, including the burger guys.

The MAPS data indicates that the average purchase value in Chicken Licken is R195 while KFC stands at R185.00 and Hungry Lion at R170. So, is the price the only factor impacting market share?

To understand the market better, we need to examine the differences in marketing strategies between KFC, Chicken Licken and Hungry Lion in the chicken fast-food markets in South Africa more closely.

Crunching Competition: Marketing Strategies of KFC, Chicken Licken, and Hungry Lion in South Africa’s Chicken Wars

In South Africa, the fast-food industry is intensely competitive, and brands like KFC, Chicken Licken, and Hungry Lion employ distinct marketing strategies to stand out. Here’s a breakdown of each brand’s approach:

KFC

  • Brand Positioning: KFC is positioned as a trusted, international brand offering high-quality, consistent products. It has deep brand loyalty in South Africa because of its long-standing presence and familiarity.
  • Marketing Strategy:
    • Localized Menus: KFC adapts its menu to South African tastes, offering regionally inspired items alongside global favourites. Specials, like “Streetwise” meals, are specifically designed to resonate with the local market.
    • Promotions & Value Deals: KFC frequently offers family-sized meals and value-for-money combos, which appeal to budget-conscious customers.
    • Digital Innovation: KFC’s online ordering and delivery system is among the most advanced in the sector, with regular app and website promotions to build customer loyalty.
    • Social Responsibility: KFC also has a visible CSR strategy, notably through its “Add Hope” initiative, supporting feeding programs for children.

Chicken Licken

  • Brand Positioning: Chicken Licken is a proudly South African brand with a strong cultural identity, using humour and nostalgia to resonate with the local audience.
  • Marketing Strategy:
    • Distinct Advertising Style: Chicken Licken’s ads are known for their humour, wit, and creativity, often featuring quirky, memorable characters or cultural references that appeal to South Africans.
    • Affordable Fast Food: Chicken Licken focuses on affordability without compromising on quality, attracting young adults and families who seek both value and taste.
    • Urban and Youth-Centric Focus: The brand has an urban edge, often using language and style appealing to younger, city-dwelling consumers. It regularly promotes “Soul Food” as an authentic, enjoyable eating experience.
    • Cultural Relevance: Chicken Licken leverages South African culture and humour in a way that resonates deeply with the local audience, setting itself apart from international brands.

Hungry Lion

  • Brand Positioning: Hungry Lion provides good food at low prices, positioning itself as a regional alternative to KFC emphasizing its value and accessibility in underserved markets.
  • Marketing Strategy:
    • Expansion into Underserved Areas: Hungry Lion often sets up locations in townships, smaller towns, and rural areas, where competition is less intense and the need for affordable dining options is high.
    • Value Proposition: Known for large portions at affordable prices, Hungry Lion’s core marketing message emphasizes “bigger, better chicken,” catering to consumers who want maximum value.
    • Simple, Direct Messaging: Hungry Lion’s advertising focuses on straightforward, family-oriented messages emphasising its portions and affordability rather than cultural or humorous content.
    • In-Store Promotions: Hungry Lion relies on local store-based promotions to drive traffic, often using SMS and local advertising to reach consumers.

Strategic Takeaways

  • KFC is heavily focused on digital engagement, menu localization, and maintaining its strong international brand equity while aligning with South African values.
  • Chicken Licken leans into cultural authenticity and humour, establishing itself as an affordable yet culturally significant brand, especially appealing to younger and urban demographics.
  • Hungry Lion focuses on value and accessibility in underserved locations, with marketing centred on affordability, large portions, and simplicity, often targeting lower-income families and rural consumers.

Each brand’s strategy highlights a unique positioning in South Africa’s fast-food landscape, appealing to different customer needs and cultural touchpoints.

Chicken Showdown: Weighing Up KFC, Chicken Licken & Hungry Lions in Strengths

KFC reigns supreme in South Africa’s fast-food industry, boasting superior market share, extensive reach, and brand loyalty compared to Chicken Licken and Hungry Lion. Here’s a look at what sets KFC apart and how Chicken Licken and Hungry Lion compete within the industry:

KFC

  • Market Share: KFC dominates with the largest market share in South Africa’s fast-food chicken segment. This is partly due to its long-standing presence, having established itself as a trusted brand since entering the market in the early 1970s.
  • Extensive Reach: KFC has an expansive network of over 1,000 stores across both urban and rural areas, more than any other fast-food brand in South Africa. Its reach makes it accessible to a wide audience, from major cities to small towns.
  • Brand Loyalty: As part of the global Yum! Brands network, KFC benefits from robust brand recognition and customer loyalty. Many South Africans associate it with high-quality, reliable products.
  • Digital Innovation & Marketing: KFC’s strong digital and delivery platforms, coupled with its targeted social media campaigns, keep it connected to its diverse consumer base, especially the younger demographic.

Chicken Licken

  • Second in Popularity: Chicken Licken is a well-loved local favourite, especially in urban areas. Though smaller than KFC in reach, it has a strong brand following and is often ranked as the country’s most popular local fast-food brand due to its cultural relevance and humorous, memorable advertising.
  • Competitive Differentiation: Chicken Licken’s distinctive “Soul Food” positioning and witty ad campaigns give it a unique brand identity that resonates with South Africans. Its focus on affordability and quality also helps it retain a loyal customer base, particularly among young adults.
  • Regional Strengths: While lacking KFC’s national reach, Chicken Licken performs very well in metropolitan areas, seizing the urban and youth markets.

Hungry Lion

  • Growing Competitor: Hungry Lion is smaller in scale but has growth Q-o-Q, especially in underserved areas like townships and rural regions. It has positioned itself as a more affordable alternative, focusing on large portions and value for money.
  • Focus on Value: While it doesn’t have the brand recognition or extensive reach of KFC, Hungry Lion’s commitment to affordable pricing attracts a price-sensitive demographic, and has a loyal following in the areas where it operates.
  • Expansion in Smaller Markets: Hungry Lion’s strategy to expand in rural and semi-urban areas fills a niche where there are fewer competing fast-food options, allowing it to capture a unique customer base.

Key Reasons for KFC’s Leadership

  • Investment in Infrastructure and Innovation: KFC’s large investments in digital ordering, delivery services, and widespread locations allow it to serve a wide range of customers effectively.
  • Strong Brand Equity: As a global brand, KFC has deep-rooted recognition and trust in South Africa, which translates to consistent customer loyalty.
  • Product Consistency and Localization: KFC maintains product quality while innovating with local flavours and promotions tailored to South African tastes, helping it stay relevant to both new and long-standing customers.

While Chicken Licken and Hungry Lion are competitive players, KFC’s scale, resources, and customer loyalty secure its position as the leading brand in South Africa’s fast-food chicken segment. Chicken Licken is the strongest local challenger, especially in urban areas, while Hungry Lion remains a more regionally focused contender growing its footprint in price-sensitive markets.

Mapping Success: GeoScope’s Data-Driven Strategies Revolutionize Fast Food Brand Growth in South Africa

GeoScope supports fast food brands with data-driven strategies by combining geographic information systems (GIS), customer analytics, and tailored market insights.

Expertise in Location-Based Intelligence

  • Branch Location Strategy: GeoScope’s GIS expertise allows brands to make precise, data-backed decisions about locating retail outlets. By mapping brands’ target market at a local level using MAPS data, store locations and attraction points, GeoScope optimizes fast food outlet distribution for maximum profitability.
  • Customized Location Models: Unlike generic tools, GeoScope offers tailored solutions based on a deep understanding of the fast-food industry and local market dynamics, providing brands with nuanced, actionable insights that match specific goals.

Customer Satisfaction and Experience Mapping

  • Advanced Consumer Insights: GeoScope’s research expertise allows fast food brands to gauge customer satisfaction and expectations through customized surveys, sentiment analysis, and satisfaction metrics. This can identify service pain points, refine product offerings, and enhance customer loyalty.
  • Real-Time Feedback Tools: By integrating survey tools and feedback loops, GeoScope empowers brands to track customer satisfaction continuously, allowing them to respond quickly to changing customer expectations or emerging issues.

Comprehensive Market Research Solutions

  • End-to-End Support: From concept and survey design to analysis and reporting, GeoScope provides full-service research solutions. This includes tailored customer profiling, competitive landscape analysis, and demand forecasting.
  • Data Integration for Strategic Insights: GeoScope can integrate various data sources (such as demographic, economic, and behavioural data) to offer a more holistic view of market dynamics, giving brands the edge in understanding consumer behaviour at a granular level.

Proven Track Record and Local Expertise

  • Established Industry Relationships: With over 17 years of experience, GeoScope brings a proven record and trusted reputation across South Africa and broader African markets. This expertise helps fast-food brands navigate local market complexities.
  • Agility in Addressing Diverse Markets: GeoScope’s familiarity with the nuances of urban and rural settings enables it to adapt strategies that resonate with different demographics, ensuring fast food brands connect effectively with diverse South African consumers.

Innovation in Data Collection and Analytics

  • Use of Innovative Data Tools: GeoScope stays ahead by leveraging cutting-edge data collection techniques, predictive analytics, and AI-driven models that can reveal new insights. This proactive approach is a value-add that many competitors may not offer.
  • Focus on Real-Time and Predictive Analytics: By harnessing real-time data and predictive tools, GeoScope provides forward-looking insights, helping fast food brands make proactive decisions about location planning and customer experience.

By delivering these tailored, insight-driven solutions, GeoScope distinguishes itself as the ideal partner for fast-food brands aiming to refine their strategic approaches in South Africa.

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