KFC fans brace up for price hikes
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We all know that the cost of living is rising – and fast. Whether it’s petrol, groceries, or your internet and power bills, everything seems to be getting more and more expensive.
And unfortunately for our members who are KFC fans, we have some bad news – it looks like you'll have to start shelling out a bit more cash for your favourite fried chicken meals.
According to fresh reports, Collins Foods – the entity behind 263 KFC restaurants across the country – admitted that price rises should be expected as their operation costs climb..
The company reported that the skyrocketing cost of food products such as chicken, lettuce, and oil, which are necessary for KFC’s dishes and snacks, has put a dent in its revenue, meaning that it won’t be able to recover from this expense until 2025.
‘Additional menu pricing and procurement initiatives are expected to mitigate further cost inflation into FY24, though full margin recovery may extend into FY25 and beyond,’ Collins Foods wrote in its half-year results.
The fast food giant, however, declined to disclose the exact percentage prices are expected to rise. But according to reports, the company will continue to maintain increases ‘at or below’ inflation.
While KFC’s Chief Executive Drew O’Malley cited inflation as the major reason behind the company’s previous price hikes, he reiterated that the company will always make sure to ‘keep value at the centre of their customer appeal’.
Even amid an ‘unfavourable consumer landscape,’ Mr O’Malley claims that the company’s brand is still intact. He admitted though that the company is expecting ‘inflationary pressures to remain in the near-term’.
‘Top-line growth has continued at an impressive rate, which has allowed us to mitigate some of the considerable margin headwinds experienced across the business while maintaining the brand’s value proposition,’ he added.
‘KFC’s brand strength in particular allows us to be well-positioned to appeal to consumers regardless of economic conditions.'
Do you think it's fair that KFC will soon increase prices as well? Share your opinions with us in the comments below.
And unfortunately for our members who are KFC fans, we have some bad news – it looks like you'll have to start shelling out a bit more cash for your favourite fried chicken meals.
According to fresh reports, Collins Foods – the entity behind 263 KFC restaurants across the country – admitted that price rises should be expected as their operation costs climb..
The company reported that the skyrocketing cost of food products such as chicken, lettuce, and oil, which are necessary for KFC’s dishes and snacks, has put a dent in its revenue, meaning that it won’t be able to recover from this expense until 2025.
‘Additional menu pricing and procurement initiatives are expected to mitigate further cost inflation into FY24, though full margin recovery may extend into FY25 and beyond,’ Collins Foods wrote in its half-year results.
The fast food giant, however, declined to disclose the exact percentage prices are expected to rise. But according to reports, the company will continue to maintain increases ‘at or below’ inflation.
While KFC’s Chief Executive Drew O’Malley cited inflation as the major reason behind the company’s previous price hikes, he reiterated that the company will always make sure to ‘keep value at the centre of their customer appeal’.
Even amid an ‘unfavourable consumer landscape,’ Mr O’Malley claims that the company’s brand is still intact. He admitted though that the company is expecting ‘inflationary pressures to remain in the near-term’.
‘Top-line growth has continued at an impressive rate, which has allowed us to mitigate some of the considerable margin headwinds experienced across the business while maintaining the brand’s value proposition,’ he added.
‘KFC’s brand strength in particular allows us to be well-positioned to appeal to consumers regardless of economic conditions.'
Key Takeaways
- KFC fans can expect menu prices to rise in order to keep up with food inflation.
- The company plans to keep menu price increases ‘at or below’ inflation.
- KFC's Chief Executive claims they are still well-positioned to appeal to consumers.
Do you think it's fair that KFC will soon increase prices as well? Share your opinions with us in the comments below.