March 18, 2008

AFC to invest US$6 million to boost Popeyes performance
 

Atlanta-based AFC Enterprises has decided to spend US$6 million to boost the long-term potential and profitability of its Popeyes Chicken & Biscuits fast-food restaurant chain.
 

Although Popeyes stands out from competitors with its spicy chicken, it has not been able to fulfill its maximum potential, according to Cheryl Bachelder, chief executive office of AFC.

AFC has not fully capitalised the advantage of the Popeyes brand to increase consumer traffic in recent years and that needed changing, said Bachelder.

Popeyes has struggled in the fast-food market, with US sales shrinking by 1.6 percent in the fourth quarter.

The US$6 million will be used to support a marketing campaign built around its fried chicken product, new menu items that include portable snacks for in-car dining and a service enhancement system.

AFC also plans to sell its company-owned stores, which comprise 65 of the 1,905 total worldwide. This move could bring in US$28 million to US$30 million for the company.

The plan will take 12 to 18 months to implement, said Bachelder.