Colonel Punishment - The significance of the KFC Double Down

    The publicity generated from a product like the Double Down gets people talking about KFC again -- and, if it drives them into stores, they're more likely to try the company's other, less gimmicky products. When New York Times critic Sam Sifton gave the sandwich a thrashing on his blog, he conceded that the chain's potato wedge fries "weren't bad" -- no small victory for the quick service chain. The added foot traffic gives KFC a chance to introduce new customers to its menu.

    "You get people who may intend to buy the new product when they go to the store, then they change their mind when they get there," says Mark Kalinowski, an analyst at Janney Capital Markets. Kalinowski says that often happens when customers go to fast food stores intending to purchase salads; one can easily imagine the scent of fryer oil trumping the sight of wilted iceberg lettuce.

    The Double Down isn't just a sideshow distraction, however. In many cases, novelty products can generate meaningful sales boosts. Kalinowski points to the success of the Pizza Hut Big New Yorker, which he says produced double-digit sales growth -- a rarity in the slow-moving fast food market. KFC hasn't achieved that level of expansion in more than a decade, says Kalinowski.

    It's too early to gauge the returns of the Double Down, but Kalinowski thinks it could help the chain achieve positive same-store sales growth this year. Novelty, like the bun, isn't permanent -- but the momentum it creates can last for at least a few quarters.