Dive Brief:
- Kentucky Fried Chicken is suing Church’s Texas Chicken, claiming the smaller competitor violated KFC’s trademarked use of the phrase “original recipe” in an advertising campaign that began at the end of September, court records show.
- On Oct. 24, KFC sent a letter to Church’s demanding the chain cease using its trademark. According to the suit, Church’s had yet to respond as of Nov. 8.
- The suit is similar in effect, but differs in method, from the pressure campaign Yum Brands ran last year to force Taco John’s to relinquish its “Taco Tuesday” trademark so Taco Bell could use the same promotion.
Dive Insight:
KFC claimed that Church’s use of the phrase “original recipe” in its marketing is “likely to deceive, confuse and mislead purchasers and prospective purchasers into believing that the goods and services offered under the mark are affiliated with, authorized by, or come from KFC.”
Of the three advertisements KFC cites at the start of the complaint, one is from Church’s website, while another is a social media post showing Church’s posters on a wall. The third is a still from a series of television advertisements that show Church’s restaurants and are available on Church’s YouTube channel.
KFC claimed that such advertisements dilute the power of its trademark. The chicken giant is seeking an injunction that would force the smaller chain to shut down its “original recipe” marketing campaign.
The suit also asks for a court to require Church’s “to account for and pay over to KFC three times the profits realized by Defendant from its acts of willful trademark infringement and dilution of the KFC Marks” alongside other damages.
Yum Brands used similar strong arm legal tactics to “liberate” the Taco Tuesday trademark from Taco John’s in 2023. Yum petitioned the Trial and Appeal Board of the U.S. Patent and Trademark Office to cancel Taco John’s trademark. That effort was ultimately successful at pushing Taco John’s to relinquish the trademark, and Yum spun it as a whimsical victory for its multi-billion dollar Taco Bell brand.
Chipotle also successfully used trademark law to exact concessions from a smaller brand in 2023, when it pushed Sweetgreen to drop the word “chipotle” from the name of a menu item.
KFC does have reason to be afraid of its competitors, as brands like Raising Cane’s and Zaxby’s nibble at the chain’s U.S. market share. KFC’s average unit volume is fairly low — $1.4 million compared to Zaxby’s $2.7 million and Chick-fil-A’s $9.3 million AUV for freestanding franchise restaurants, according to their respective franchise disclosure documents. KFC has also seen its same-store sales slip for several quarters running.
But Church’s Texas Chicken is one of its weaker competitors, with an AUV of about $1 million and a unit count that fell from 1,015 stores at the start of 2021 to 901 at the end of 2023, according to its franchise disclosure document. Church’s has tried to bolster its sales with menu items, like the Original Recipe chicken, and with a loyalty program. The KFC suit could prove a drain on the brand’s resources, especially if KFC succeeds in appropriating some of Church’s profits from its Original Recipe campaign.
