Leawood’s KBP Brands Cuts Jobs Amid Inflation Woes
In a surprising twist for the fast-food world, Leawood-based KBP Brands, recognized as one of the nation’s leading franchise giants, has announced major layoffs, impacting nearly 9% of its corporate workforce. The company, which oversees a staggering number of KFC and Arby’s locations, is directly addressing the financial pinch caused by rising inflation and challenging consumer conditions.
The Numbers Behind the Layoffs
A spokesperson for KBP stated, “We are streamlining operations and reducing expenses to continue growing the company.” The statement emphasizes the tough decisions facing big businesses today as they navigate a tricky economic landscape. While exact numbers remain unclear, estimates suggest that the layoffs could mean job losses affecting anywhere from 16 to 112 employees across the company
Back in March, KBP reported having about 173 full-time equivalent (FTE) employees in the Kansas City area, which may indicate that around 16 of those positions were eliminated. However, conflicting data presented a potential figure of about 33 job cuts if you consider that the company might have had up to 372 local FTE employees.
Which Departments Were Affected?
The layoffs hit various departments, according to sources. Roles in finance, marketing, HR, regional directors, executive administration, and even those involved in restaurant remodels and new builds were on the chopping block. This news undoubtedly raises questions about which brands within the KBP portfolio will be impacted moving forward.
Some Background on KBP Brands
The fast-food franchisee also holds the title of being KFC’s largest franchisee, overseeing over 790 restaurants across the nation, and stands as the second-largest for Arby’s, with around 116 locations. Recently, KBP has been focused on growth, as seen with its $40 million, 120,000-square-foot corporate headquarters, which opened its doors earlier in 2023 at Three Hallbrook Place.
This new headquarters holds the promise of expansion, but the recent job cuts bring a stark contrast to that vision. The company has had a recent history of acquisitions as well, including 85 Sonic locations in six states, a move expected to boost its annual revenue beyond $1.5 billion.
The Road Ahead
KBP’s 2023 revenue stood at a hefty $1.37 billion, ranking it as the No. 11 private company in the Kansas City area. As the company navigates through these uncertain waters, it remains to be seen how these layoffs will shape its future endeavors and corporate culture. While the economy may present challenges, KBP’s leadership appears determined to streamline operations to stay competitive.
As the dust settles from this latest announcement, employees, customers, and stakeholders alike will be keeping a close eye on KBP’s next moves in this rapidly changing fast-food landscape.
In a world that’s constantly adapting, it’s clear that even major players in the restaurant industry aren’t immune to the pressures of the market. How will KBP Brands respond? Only time will tell.
