Lawsuits against KFC. KFC has already been sued for many times and lost quite a few lawsuits. Lawsuits are expensive as they require time and money. As KFC continues to operate more or less the same way, there is high probability for more expensive lawsuits to come.
Introducing new products to its only chicken range. KFC could introduce new meals to its menu and offer pork, beef or only vegetarian meals, which would target wider consumer group and would result in more costumers.
High employee turnover. Employment in KFC is a low paid and low skilled job. It results in low performance and high employee turnover, which increases training costs and add to overall costs of KFC.