'World-first' drive-through-only KFC opens in Newcastle
Newcastle has become the host of a world-first drive-through-only Kentucky Fried Chicken outlet, part of an attempt by the fast food giant to adapt its restaurant model to the changing takeaway food landscape and cater to customers’ desire for a digital experience.
Set on a block in the suburb of Broadmeadow, the new KFC outlet eschews the traditional eat-in dining area in favour of an expanded drive-through, complete with boom gates.
Customers order via the KFC smartphone app or website before arriving at the store and then enter a unique order code into one of the touchscreens. When the order has been placed, the boom gate in front of them will rise and they’ll be able to collect their meal at the window.
It’s part of the company’s plans to make drive-throughs a more efficient and inviting experience for customers.
According to the company, customers had reported that traditional drive-throughs made them feel anxious as they rushed to decipher the menu options and place their order so they didn’t hold up drivers behind them.
“Utilising new technology and app integration for order placing and payment, the new drive-through-only restaurant is the latest example of KFC’s commitment to innovation and giving Aussies fresh, hot and delicious chicken in the most efficient way,” a KFC spokesperson said.
Asked why Newcastle was chosen as a destination, a KFC representative said the region’s love of fast food and the population size were both factors. The Newcastle area had a population of 322,278 at the 2016 census.
“Australia is one of the leading regions when it comes to uptake to digital products so we’re really excited to be able to offer this world-first locally. Newcastle was chosen as it’s the perfect testbed for such a concept given its buzzing CBD and highly engaged residents,” the spokesperson said.
There are 17 KFC outlets in the Newcastle area, including the new Broadmeadow outlet, according to the KFC website. That compares to 38 operating in the inner-Sydney area.
In 2010 Newcastle became home to the country’s biggest KFC store, by size, when an outlet opened at the old Palais Royale site on Hunter Street. The company also partners with app-based food delivery service Deliveroo to provide home delivery in the region.
The store is being treated as a pilot for the new ordering model, with KFC confirming that work is underway to open similar stores in Victoria and South Australia in 2020.
If the trend of smaller drive-through sites takes off, it stands to have a significant impact on the commercial property sector.
Fast-food outlets are a popular asset class with commercial property investors and the ability to develop assets on smaller sites would likely appeal to a greater number of investors, particularly in land-scarce population hubs.
The site, which is smaller than a typical KFC drive-through restaurant, is owned by KFC and not a franchisee. The company denied that the model was a response to escalating land prices in areas such as Newcastle and a desire to make more efficient use of space.
“While the logistical requirements for the drive-through-only restaurant do differ from those for our traditional restaurants, the introduction of this new model came from listening to our fans and looking at new ways to improve their experience when getting their hands on our finger lickin’ good chicken, as opposed to land sizes or any other areas,” the spokesperson said.
There are also no plans to convert existing KFC outlets to drive-through-only models, at least not yet.
“There’s currently no plans to retrofit existing KFC outlets to be drive-through-only. However, we’re always looking at ways to build the customer experience,” the spokesperson confirmed.
And for those less technologically able fans of the Colonel, customers are still able to order drive-through the traditional way via a dedicated lane at the Broadmeadow store.
