Crypto-curious corporations struggle to find right recipe

Four years ago, fried-chicken chain KFC tweeted from its Canadian account that it would accept bitcoin as payment for its "buckets".

The company told AFP its tongue-in-cheek campaign -- "digital tender for chicken tenders" -- sold out in an hour and the chain has not taken crypto payments since, but online articles regularly recycle the claim that KFC "accepts" bitcoin.

Many other companies have tried to harness crypto payments before abandoning their efforts, Tesla and Dell among them.

Bitcoin will almost certainly never be practical for everyday purchases because its value fluctuates wildly, and each transaction is expensive, energy-hungry and takes at least half an hour.

"No one's going to walk into a KFC to buy a chicken burger and then have to wait 30 minutes for a payment," South African developer and crypto expert Andre Cronje told AFP.

But there are now thousands of smaller cryptocurrencies with faster processing times and more stable prices.

Analysts say the total market value of cryptocurrencies has now topped $2 trillion, roughly half of which is bitcoin.

Companies are gagging to get in on the act and developers like Cronje are building the infrastructure to enable the virtual coins to be used to pay for everyday items.

But public buy-in is crucial, and corporations seem to be struggling to find the perfect formula.

'Watch the jockeying'

Microsoft typifies the emerging pattern of big companies dabbling in crypto.

The first rule: keep it at arm's length from the core business.

The tech giant has stressed that shareholders will not be exposed to the ups and downs of crypto prices.

PayPal and Apple, two other crypto-curious corporations, have made similar pledges to their shareholders.

To keep crypto off its balance sheet, Microsoft partnered with a firm called Bakkt that allows clients to convert crypto assets into products like gift cards for Xbox, or charge their Starbucks payment card.

Bakkt, which has received investments from Microsoft's venture capital fund M12, went public last year and a flurry of big partnership announcements with the likes of Mastercard sent its share price soaring.

But then came the nose-dive as it reported widening losses and its business came under scrutiny.

The firm had said it expected to have nine million customers by the end of 2021, yet its executives gave a figure of 1.7 million transacting accounts late last year.

PayPal, meanwhile, garnered a lot of publicity for a "checkout with crypto" feature launched in the US and UK last year.

PayPal's system converts users' cryptoassets into money before passing on payment to the vendors.

But it is unclear how popular any of these services are -- none of these companies responded to AFP requests for details of the uptake.

Market watchers say it is too early to tell how these forays into crypto will play out.

"My view is to not get too excited yet but just watch the jockeying," said analyst John Freeman of CFRA research, accepting the hot air made it difficult to predict what would happen next.

'When, not if'

The barriers to widespread adoption of direct crypto payments for everyday items are considerable -- perhaps even unsurmountable.

Developer Cronje said he functioned largely without the need for regular cash or banks by using services like BitPay and BitRefill, which allow crypto to be spent anywhere from Amazon to Uber.

But he accepted his less tech-savvy friends "would be broke very quickly" if they tried to rely on the blockchain, the technology that underpins cryptocurrencies.

Instead, he envisages a future where people will continue to use credit cards and banks but back-end tasks will be largely automated on the blockchain.

"This is a technology that conservatively is going to save them between 20 percent and 25 percent of their overheads and their costs," he said. 

"So it's not a matter of if, it's a matter of when."

Meanwhile, non-financial businesses will continue to throw themselves into the crypto space, often to emerge slightly wiser but no richer.

The Pavilions hotel chain, for example, partnered with a payments firm last year to allow customers to use crypto but found it made little difference to its business.

"It turns out no one likes to spend their bitcoins, even on holidays!" Pavilions spokesman Tim Sargeant told AFP in an email.

"It has shown us that bitcoin is more an investment tool than something people wish to part with for payment."

Agence France-Presse

KFC logs promise to make homes smell like fried chicken

The sights and sounds of the holiday season are familiar to us all: snow falling gently outside, stockings overflowing with gifts, “White Christmas” playing softly in the background.

Now imagine that scene, except the whole house smells like Kentucky Fried Chicken.

That’s the vision of holiday cheer that KFC is hoping to sell this month, with the release of a branded log designed to create a “warm fried chicken-scented fire” on the hearth.

When KFC launched the logs in 2018, the chain sold its entire supply online in three hours, according to a company representative. This year, the logs are on sale at Walmart for $18.99, in what the retailer describes as a limited-time deal. KFC would not say how many logs are available.

KFC has been pitching the scented logs as an environmentally sustainable alternative to firewood: The chain designed the product in a partnership with Enviro-Log, a company that makes firewood substitutes from recycled waxed cardboard.

In a statement, KFC’s chief marketing officer in the US, Andrea Zahumensky, said the chain had received “weekly calls from hopeful fans” desperate for the return of the log. “We hope you’ll cuddle up with your family or friends with a bucket of our world-famous fried chicken and a warm fried chicken-scented fire this holiday season,” Zahumensky said.

The release of the scented log marks a fitting conclusion to a busy year of fried-chicken marketing. In August, a seemingly innocuous post on Twitter by the Popeyes social media team set off the “chicken sandwich wars” as Chick-fil-A and other chains jockeyed to assert their products as the best. And in five hours on a Tuesday at the end of August, KFC sold its entire test supply of chickenless fried chicken developed by plant-based meat company Beyond Meat.

Nor is this the first time that a fast-food chain has attempted to cash in on Christmas. McDonald’s is offering a branded Christmas sweater. Dunkin’ is selling peppermint-scented wrapping paper.

The unveiling of the scented logs drew immediate ridicule on Twitter from critics who called it a new low in Christmas marketing. “Hoping also to find a candle that smells like someone cooking salmon in the staff microwave,” one user said. (KFC has offered a scented candle in the past, but it smelled like gravy rather than microwaved fish.)

Still, the new product has at least one important advantage over homemade alternatives, according to Walmart. The log, the retailer’s website states, is significantly less wasteful than “burning actual fried chicken.”

But Walmart also urges caution: While the burning log may smell like fried chicken, it would be inadvisable to attempt to eat it.

“Please,” the website said, “do not put your face directly into the fire.”


2019 The New York Times Company

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KFC to test meatless chicken at Georgia restaurant

WASHINGTON - KFC will test vegetarian, plant-based chicken for one day in one restaurant in the US state of Georgia, the American fast food giant said on Monday.

Complimentary samples of the new product, which was developed in partnership with Beyond Meat and is dubbed "Beyond Fried Chicken," will be available at the KFC in Smyrna, Georgia on Tuesday, and customers can also buy nuggets and boneless wings made from the non-meat.

"I think we've all heard 'it tastes like chicken' -- well our customers are going to be amazed and say, 'it tastes like Kentucky Fried Chicken!'" president and chief concept officer for KFC US Kevin Hochman said in a statement.

KFC's foray into plant-based meat follows Burger King's debut earlier this year of the Impossible Whopper, a meatless version of its signature beef hamburger developed with Impossible Foods. 

The start-up is one of several competitors in the rapidly growing field of food companies catering to people who don't eat meat.

Beyond Meat said in a statement that feedback from the test in Georgia will help KFC consider a national rollout of the meat-free chicken.

source: news.abs-cbn.com

LOOK: Durian-flavored condoms and other April Fool's Day pranks

MANILA – Ads for a durian-flavored condom, a portable shower with its own bathing assistant, and an oversized "quadruple" fried chicken and bacon sandwich went viral on social media on Monday as businesses posted April Fool’s Day pranks.

DUREX 

A Facebook page promoting the contraceptive brand Durex announced new condom flavors using the popular Filipino delicacy pinipig, and the foul-smelling tropical fruit Durian. 

Over 4,000 Facebook users reacted to the “Kilig Pinipig” and “Dirty Durian” post. It has also been shared over 2,500 times as of writing.

HONESTBATH

Grocery food and delivery platform Honestbee surprised users with an "honestbath" campaign, promising to deliver a portable shower that comes with slippers, a fluffy towel, a shower curtain and even a bathing assistant. 

There's also a cheaper “Tabo bath,” option that still includes a bathing assistant. 

Honestbee confirmed to ABS-CBN News that the promotion was “an April Fool’s Day execution.”

Honestbee even produced a video for honestbath. 

DUNKIN’ DONUTS

Fans of Choco Butternut panicked after the popular doughnut brand said it would remove the variant from the shelves due to a "global Butternut shortage." 

Dunkin’ Donuts was quick to clarify that it was is a joke. Over 34,000 Facebook users reacted to the post. It has also been shared over 25,000 times as of writing. 

KENTUCKY FRIED CHICKEN

On a Facebook post, fast-food operator KFC said it would be releasing a "quadruple" version of its chicken sandwich "Double Down" meant for "hardcore meatheads." 

But KFC had to clarify in the comment section that the post was an April Fool's Day prank after 2,600 users reacted to it.

ZALORA

E-commerce platform Zalora, meanwhile, surprised consumers with an email saying that a “sexy red underwear” was shipped to their addresses.

Once opened, the email led consumers to a 25 percent promo code, which may or may not be another prank. 

source: news.abs-cbn.com

Hundreds of KFC stores in UK shut due to chicken shortage

LONDON - US fast-food chain KFC said Monday it had shut hundreds of UK stores as German delivery supplier DHL left them short of fowl and customers without their "fried chicken fix".

KFC said that more than 700 of its 900 UK-wide chicken shops had been forced to close since the weekend, while others were offering a downsized menu or shorter opening hours.

"We've brought a new delivery partner onboard, but they've had a couple of teething problems -- getting fresh chicken out to 900 restaurants across the country is pretty complex," KFC said in a statement.

"We won’t compromise on quality, so no deliveries has meant some of our restaurants are closed, and others are operating a limited menu, or shortened hours.

"We know that this might have inconvenienced some of you over the last few days, and disappointed you when you wanted your fried chicken fix -- we’re really sorry about that," the company added.

DHL said in a separate statement that it was working to resolve the problem.

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KFC says it's bird flu-free

MANILA - KFC Philippines said Wednesday its products were unaffected by the bird flu outbreak in Pampanga province.

Rival restaurant operators Jollibee, McDonald's, Max's Group and poultry producers San Miguel Purefoods and Bounty Agro Ventures have made similar assurances to consumers.


"KFC Philippines would like to assure our loyal patrons that our famous line of fried chicken products are neither affected nor threatened by present concerns over avian flu," the company said in a statement.

All tests on KFC Philippines' chicken have turned out negative for the virus, it said.

The government has moved to contain the spread of the virus from the farming town of San Luis, north of the capital, where some 200,000 chickens were slaughtered.

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Meet hunk store manager in viral photos

Christopher Sengseng, a manager of a fastfood chain's branch along the North Luzon Expressway, became an Internet sensation last week when photos of him while on duty made the rounds online.

In a live interview on ABS-CBN's "3-in-1" on Tuesday, Sengseng said it remains "a question mark" why his photos drew admiration from netizens. He admitted, however, that he and his wife find it difficult to deal with the attention they are getting now.

source: www.abs-cbnnews.com

What's new on the menu: McDonald's, KFC

MANILA – Fast food giants McDonald’s and KFC have introduced limited edition products to its customers in the Philippines.

Here’s a look at the new offerings of the two establishments. These are not endorsed by ABS-CBNnews.com.

Crispy Fire Chicken

KFC Philippines and Tabasco hot sauce have co-created a new product called Crispy Fire Chicken, which promises a unique tangy taste and extra crispiness in every bite.

The chicken is marinated in hot pepper spices from Tabasco, the world’s leading pepper sauce brand since 1868.

It can be enjoyed with chicken rice and coleslaw or as part of a Fully Loaded Meal or Bucket Meal.

Double Filet-O-Fish

Just in time for the Lenten season, McDonald’s Philippines is offering the Double Filet-O-Fish – two fish fillets with a slice of melted cheese and tangy tartar sauce, sandwiched between buns.

McDonald’s said the Filet-O-Fish buns are steamed, making them softer compared to the other sandwiches on the menu.

The Double Filet-O-Fish is available for dine-in, take-out, drive-thru and delivery at all McDonald’s branches nationwide for a limited time only.

source: www.abs-cbnnews.com

LOOK: KFC PH offers 'Double Down Dog'

MANILA – KFC Philippines on Monday introduced a new incarnation of its “Double Down” chicken sandwich.

Dubbed the “Double Down Dog,” the sandwich features a large chicken fillet hugging a chicken and cheese hotdog.

Only 50 orders of the product are offered at selected KFC stores in Metro Manila for two days -- January 26 and 27.

Released in the Philippines in 2010, the original Double Down featured two chicken fillets, with bacon and a special sauce as filling.

KFC eventually introduced a spicy version of the sandwich as well as one with real bread buns.

source: www.abs-cbnnews.com

Why KFC stopped selling fries in Japan

TOKYO - Kentucky Fried Chicken in Japan has stopped selling fries, as industrial disputes that have crimped potato exports from the US took another bite out of the country's fast food market.

The chain became the latest casualty of the chip shortage that has already forced McDonald's Japan to ration its servings.

"Due to the prolonged dockworkers' disputes on the United States West Coast, it has become difficult to secure stable supplies of potatoes," the firm said in a statement dated Thursday.

"The company will halt the sales of potatoes temporarily until a stable supply becomes available."

Chip troubles for "The Colonel" came after McDonald's in Japan said last month it had airlifted in more than 1,000 tonnes of potatoes and had put in place emergency shipment via an unusual sea route.

The airlift eased the shortage that had forced the chain to limit customers to small servings of fries.

That came after the operator of the Gusto restaurant chain also said it planned to airlift in around 200 tons of french fries to avoid running short.

Dockworkers in the US are reportedly on a go-slow and have not been providing full crews for months in a bid to gain bargaining leverage in labour negotiations with employers.

source: www.abs-cbnnews.com

5 held in China food scandal probe

SHANGHAI - Shanghai police said on Wednesday they detained five people in an investigation into a Chinese-based supplier of foreign fast-food brands, including KFC, McDonald's Corp and coffee chain Starbucks Corp, over allegations the firm supplied old and rotten meat.

The five detained include the head of the company - Shanghai Husi Food Co Ltd, a unit of U.S.-based OSI Group LLC - and the firm's quality manager, the police said in an online statement.

McDonald's and Yum Brands Inc, the parent company of KFC and Pizza Hut, and a number of other global brands have pulled products from their outlets after it emerged that Shanghai Husi supplied expired meat to clients in China, as well as Japan.

Earlier, the official Xinhua news agency cited the Shanghai food and drug watchdog as saying that food safety violations at Shanghai Husi were company-led rather than the acts of individuals. "We discovered that some of the company's illegal behavior was not the behavior of individuals, but rather an organized arrangement by the company," Xinhua reported Gu Zhenhua, deputy head of the Shanghai Municipal Food and Drug Administration, as saying.

In a separate statement, the Shanghai food watchdog said it sealed more than 1,000 tonnes of suspected meat products from OSI in China, and a further 100 tonnes of products from a range of its customers.

Illinois-based OSI has said it was "appalled" and was investigating the matter after a Chinese TV report on Sunday showed staff at its Shanghai Husi facility using expired meat and picking up meat from the floor to add to the mix.

An official at OSI in China reached by telephone on Wednesday declined to comment further.

A factory worker at another of OSI's food processing plants in the northern Chinese province of Hebei told Reuters on Wednesday that regulations were very strict at the plant, that all workers needed to wear special clothes, and that spot checks were often held unannounced.

"The inspections are done by everyone: our own company, the government and also clients like McDonald's. Our rules are very strict and food safety standards are very high," said the worker, surnamed Wei, as he took a break at a nearby supermarket.

He added that the Hebei factory, which processes meat, vegetables and flour products according to its website, was still open for business despite government inspections.

'DOCTORED RECORDS'
Xinhua also cited the Shanghai food watchdog's deputy head Gu as saying that Shanghai Husi's controls systems and records for suspected products violated Chinese regulations.

In the Dragon TV documentary on Sunday, staff at the Shanghai Husi facility said they kept two record books related to food products, one of which was doctored to be shown to anyone who came to audit the facility. According to the report, which claimed to show an inspection of the facility by McDonald's, Shanghai Husi staff were aware a day in advance of the visit and made sure that only compliant products were being processed on the day.

In Japan, a spokesman for Seven & I Holdings Co Ltd said a licensee in Shanghai had been selling two hamburger products using meat supplied by Shanghai Husi. Both products were removed from outlets on Monday.

A spokeswoman for FamilyMart Co Ltd said the Japanese convenience store chain had begun a supply deal with Shanghai Husi this month, selling a "Garlic Nugget" product at its around 10,000 stores in Japan. Another product, "Popcorn Chicken" began test-sales mainly in Tokyo this week. Sales of both products were halted on Tuesday. The company said there were no reports of any customers falling sick from the products.

"I am deeply sorry for causing this trouble and worry to all those involved," FamilyMart President Isamu Nakayama told reporters in Tokyo. "We do not think there is any problem with our operating structure but the very fact that this happened means that I think that additional checks should be put into place to help reassure consumers."

On Tuesday, McDonald's Holdings Co (Japan) Ltd said the company had sourced about a fifth of its Chicken McNuggets from Shanghai Husi and had halted sales of the product on Monday.

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KFC to offer all-you-can-eat breakfast

MANILA – Two years after setting up real beds in their restaurants for breakfast, KFC Philippines is at it again as it starts serving morning meals buffet-style this coming weekend.

The fast food chain announced that its breakfast buffet will be available in eight participating stores in the Philippines from 7:30 a.m. to 10 a.m. on all weekends of July.

It encouraged customers to reserve early for the buffet – which includes chocolate chip pancakes, longganisa, tocino, chicken fillet with steak sauce, egg, garlic rice and arroz caldo, among others – as seats are limited.

The offer is priced at P199 per person exclusive of drinks, and P99 for children between three to four feet in height. Shorter kids get to eat for free.

The Philippine franchise of KFC has been known for its unique offerings, with some of them making it to US publications and TV shows.

One of these is the Cheese Top Burger – a chicken sandwich with melted cheese placed on top of the bun – which had its own spoof on the US late-night talk show “Jimmy Kimmel Live.”

Just recently, the fast food chain gained mixed reactions from netizens in the Philippines after offering fried chicken coated with the popular Filipino snack Clover Chips.

source: www.abs-cbnnews.com

Kentucky Fried Chicken shuts its doors in Syria

DAMASCUS - US fast-food chain Kentucky Fried Chicken has closed the doors of its last remaining branch in Syria due to economic and supply problems, shopkeepers in Damascus told AFP.

The branch in the upscale Abu Rummaneh neighbourhood of Damascus is the last of seven KFCs in Syria to have shuttered.

"Closed. Please leave your number if you are interested in buying this establishment," a sign posted on the branch's window now reads.

KFC was the first US fast-food restaurant to set up shop in Syria in 2006, with Kuwaiti businessman Nasser Khurafi bringing the chain to the country.

It remained open despite the sanctions imposed against Syria by the United States in response to the regime's crackdown on an uprising that began in March 2011.

"The business was facing multiple problems" including in procuring supplies, a local businessman told AFP.

The conflict that began with an uprising against President Bashar al-Assad's regime has ravaged Syria's agricultural sector while fighting has made delivery of products to market increasingly difficult.

The violence has also caused the value of the Syrian pound to plunge and produced increasing poverty among Syrians, making the cost of a KFC meal beyond the reach of most.

source: www.abs-cbnnews.com

How China's fast food firms are beating McDonald's, KFC

SHANGHAI - Bearing rice burgers and lotus roots, an army of Chinese fast food firms is cooking up a challenge to McDonald's Corp and Yum Brands Inc, tempting cost-conscious diners with healthy, homegrown fare and causing a drag on growth for the U.S. chains in the country's $174 billion fast food market.

McDonald's said last week it was thinking of slowing expansion in China as diners are tempted by local rivals. KFC-parent Yum warned this month economic weakness in China would drag on a recovery in sales dented by a food safety scare at the end of last year. (Full Story) (Full Story)

Meanwhile, local firms such as chicken chain Dicos, Country Style Cooking, and Kung Fu Catering have been nibbling away at the dominance of their U.S. rivals.

"I'm a bit sick of Western fast food. There's too much oil, and you hear things like chickens having six legs," said student Tang Mei, 25, as she dined at Taiwanese-owned fast food outlet Dicos. "Health concerns have really made people worried."

McDonald's and Yum are still the largest fast food chains in China but, despite heavy investment, McDonald's has seen its market share by value stagnate at 2.3 percent since 2007, according to data from market research firm Euromonitor.

Yum, which held 6.5 percent last year, is up slightly over the same period, but has seen same-store sales hit after a food scare last year and a local outbreak of avian flu. Yum has 5,600 KFC and Pizza Hut China stores, to McDonald's has 1,800 local outlets.

Brands like Ting Hsin International-owned Dicos, the third largest fast food brand in China, have taken note. The firm, which plans to triple its store count to around 3,700 by 2020, says it aims to "break the traditional Western fast food mould".

While conceived in the image of KFC - its name is a play on "Texas" in Chinese - Dicos now also pushes its Chinese roots. Its website displays an ornate blue ceramic bowl steaming with traditional herbal tea, while rice cake burgers and soybean milk flank the chain's more traditional nuggets and crispy wings.

"After all, since ancient times rice has been the key staple of the Chinese people," explained Zhuang Weitang, a spokesman for Ting Hsin International, adding the brand was planning to up its drive towards healthier, Chinese-style cooking.

"It's the mix (of traditional chicken) with new, health-focused Chinese specialities that has helped us create a niche in the fiercely-competitive Chinese fast-food market."

EATING THE COLONEL'S LUNCH

In a slowing economy, many consumers are trading down to cheaper alternatives or simply dining at home, said analysts, which has contributed to the growth rate in the wider fast food market halving over the last 5 years to 8 percent this year.

Lunch at Dicos costs less than 17 yuan ($2.80) compared with a similar offering from KFC, which costs 25 yuan ($4.11), according to Mintel.

"Local establishments generally also do a better job catering to local tastes," said Karla Wang, associate research director at market research firm TNS China. "These familiar 'comfort foods' often go a long way in soothing frazzled consumers during times of uncertainty."

Diners have even started to question international chains' quality, traditionally a strong point after scandals ranging from the use of recycled "gutter oil" for cooking to industrial chemical-laced milk made consumers wary of local products.

But a number of scares over the last year, including reports that some chicken purchased by KFC and McDonald's had been fed excess antibiotics, seems to have altered consumer views. Only one-in-four Chinese thought Western fast food was healthier and better quality than Chinese alternatives, said a recent report from research firm Mintel.

McDonald's and Yum have taken note.

"We address food quality and food safety in all aspects of our communication; most recently, we launched a Moms' Trust campaign... and we will be doing more in this area," said Jessica Lee, a Shanghai-based spokeswoman for McDonald's.

Yum officials were not immediately available for comment.

The company has trimmed its local supply chain and plans to launch a new China quality assurance campaign in November that will feature KFC employees, suppliers and poultry farmers.

"We still have work to do, but we know we are doing the right things to regain consumer trust and we remain confident that our best days for KFC in China are yet to come," Chief Executive David Novak said in an analysts call on Oct. 9.

HOME STYLE

As trust of domestic brands grows, diners are being increasingly drawn to local dishes, perceived as healthier due to a wider variety of ingredients, while there is mounting interest in traditional Chinese food and dining culture.

Last year a documentary called "A Bite of China" aired on local television drawing more than 100 million viewers, making it the most successful documentary in China since the 1990s.

Chinese heritage has become a key selling point.

Kung Fu Catering, which sports an emblem of martial artist Bruce Lee, underscores its local credentials by playing up the natural ingredients for its Chinese-style food against backgrounds of Chinese mountains, wispy clouds and bamboo.

Others such as Country Style Cooking, CNHLS and Gll Wonton, owned by Shanghai Shihao Catering, all offer fast food with a Chinese flavour. Though some way behind Yum and McDonald's in terms of size, all are taking market share from the huge independent sector of single shops and stalls.

Local brands also perform strongly in regions away from the saturated east coast market, catering to local tastes in areas seen as the China's next drivers for growth.

"Country Style Cooking is really strong in western China, while Kung Fu Catering is from Shenzhen and does well with more rice-based Chinese set meals, which fit the trend towards less oily and healthier food," said James Roy, Shanghai-based senior analyst at China Market Research Group.

China's influential netizens also suggest the U.S. firms are struggling to remain the flavour of the month. Chatter about the two brands on China's Twitter-like Weibo fell to an almost two-year low in September, according to analysis by Reuters.

As one microblogger wrote: "I won't choose anything but Chinese fast food. We've got crab meat dumplings to Hunan-style cooking, fragrant Xinjiang breads and lamb kebabs... What do brands like Pizza Hut and McDonald's possibly have to offer?"

source: www.abs-cbnnews.com