Wash the red potatoes thoroughly. Place them in a large pot and cover with water. Add a pinch of salt, bring to a boil, and cook for about 15-20 minutes until tender when pierced with a fork.
While the potatoes are cooking, place the bacon strips in a skillet over medium heat. Cook until crispy, then remove from the pan and let drain on paper towels, reserving about 2 tablespoons of the bacon fat in the skillet.
In the same skillet, add the diced onion to the reserved bacon fat and sauté over medium heat until the onions are soft and translucent, about 3-4 minutes.
In a mixing bowl, combine the chicken broth, apple cider vinegar, Dijon mustard, sugar, salt, and pepper, whisking until well blended.
Once the potatoes are cooked, drain them and let them cool for a few minutes before cutting them into bite-sized pieces.
Add the warm potatoes to the skillet with the sautéed onions, then pour the vinaigrette mixture over the warm potatoes. Toss gently to combine everything.
Crumble the crispy bacon strips over the potato mixture and add chopped parsley, then toss again gently to mix.
Serve the German Potato Salad warm for the best flavor.