Revealed: Why KFC is refusing to raise prices like other businesses
With the rising cost of living and the constant arrival of bills, the last thing we want to see as consumers is a price hike at our favourite fast food restaurant.
In a surprisingly consumer-friendly move, KFC Australia has decided not to fall in line with the growing trend of businesses increasing their prices to combat the inflationary beast.
Instead, they're sticking to their affordable menu prices and looking elsewhere to balance the books.
Now, you may wonder, why is KFC doing this?
Well, KFC wants to maintain its reputation for offering 'great value' as many Aussies try to tighten their purse strings.
Rather than jacking up the price of your favourite Zinger burger or original recipe bucket, they're looking at making cost-cutting measures in other areas.
This strategic decision was disclosed by Drew O'Malley, the Managing Director and Chief Executive of KFC Australia Operator Collins Foods.
Mr O'Malley stated that they are very sensitive to the fact that consumers have copped 12 interest rate rises in just over a year.
The company has chosen to tread cautiously, focusing on preserving the customer's perception of value and ensuring that the KFC brand remains strong in a competitive market.
Mr O'Malley further commented, 'Which is why we're proud that KFC is leading the pack on value right now in the minds of the consumer.'
In a business environment where quick wins often take priority over long-term success, KFC has chosen to take the road less travelled, focusing on the brand's health over immediate profit. This is a refreshing stance which is a testament to their customer-centric approach.
And this value-for-money strategy is paying off, with Collins Foods revealing that revenue for KFC Australia exceeded $1 billion for the first time, up a whopping 10 per cent over the same period a year ago.
Collins Foods is also hoping that this strategy would work in their favour as it could potentially attract customers who are 'trading down from more expensive options'.
Collins Foods operates 272 KFC restaurants in Australia and 64 more across Europe and also pioneers the Taco Bell brand Down Under.
In another interesting piece of news, Collins Foods announced the sale of its Asian branch of Sizzler restaurants to the Thai-based company Minor International.
We appreciate KFC's commitment to consumer satisfaction and value. We commend them for prioritising the customer experience during these challenging times.
What are your thoughts on KFC's decision not to raise menu prices despite inflationary pressures? Do you believe their customer-centric approach and focus on value will be beneficial for the brand in the long run?
In a surprisingly consumer-friendly move, KFC Australia has decided not to fall in line with the growing trend of businesses increasing their prices to combat the inflationary beast.
Instead, they're sticking to their affordable menu prices and looking elsewhere to balance the books.
Now, you may wonder, why is KFC doing this?
Well, KFC wants to maintain its reputation for offering 'great value' as many Aussies try to tighten their purse strings.
Rather than jacking up the price of your favourite Zinger burger or original recipe bucket, they're looking at making cost-cutting measures in other areas.
This strategic decision was disclosed by Drew O'Malley, the Managing Director and Chief Executive of KFC Australia Operator Collins Foods.
Mr O'Malley stated that they are very sensitive to the fact that consumers have copped 12 interest rate rises in just over a year.
The company has chosen to tread cautiously, focusing on preserving the customer's perception of value and ensuring that the KFC brand remains strong in a competitive market.
Mr O'Malley further commented, 'Which is why we're proud that KFC is leading the pack on value right now in the minds of the consumer.'
In a business environment where quick wins often take priority over long-term success, KFC has chosen to take the road less travelled, focusing on the brand's health over immediate profit. This is a refreshing stance which is a testament to their customer-centric approach.
And this value-for-money strategy is paying off, with Collins Foods revealing that revenue for KFC Australia exceeded $1 billion for the first time, up a whopping 10 per cent over the same period a year ago.
Collins Foods is also hoping that this strategy would work in their favour as it could potentially attract customers who are 'trading down from more expensive options'.
Collins Foods operates 272 KFC restaurants in Australia and 64 more across Europe and also pioneers the Taco Bell brand Down Under.
In another interesting piece of news, Collins Foods announced the sale of its Asian branch of Sizzler restaurants to the Thai-based company Minor International.
Key Takeaways
- KFC Australia maintains it will not be increasing its menu prices in response to inflationary pressures.
- The company will be looking to cut costs in other areas to maintain its financial stability.
- Drew O’Malley, the Managing Director and Chief Executive of KFC Australia Operator Collins Foods, stated that they strive to consider their customer’s definition of 'great value'.
- Collins Foods has also reported that revenue from KFC Australia surpassed $1 billion for the first time, indicating a 10 per cent increase compared to last year.
We appreciate KFC's commitment to consumer satisfaction and value. We commend them for prioritising the customer experience during these challenging times.
What are your thoughts on KFC's decision not to raise menu prices despite inflationary pressures? Do you believe their customer-centric approach and focus on value will be beneficial for the brand in the long run?