Following McDonald's, KFC has also commenced a new round of price adjustments.
Effective January 26th, KFC has made minor adjustments to the prices of its delivery products, with an average increase of 0.8 yuan, while dine-in prices remain unchanged.
The prices of popular discounted meal sets beloved by consumers, such as "Crazy Thursday," "Weekend Crazy Combo," and the "OK Three-Piece Set," have also been unaffected.
KFC stated that this adjustment is primarily to "better cope with changes in operational costs and maintain stable and healthy operations."
In recent years, major fast-food chains have commonly viewed price adjustments as a routine measure to address changes in market costs.
At the end of 2024, KFC implemented price increases ranging from 0.5 to 2 yuan, with an average hike of 2%; earlier, in 2022, due to factors like the global supply chain, its average price increase reached approximately 6.2%.
However, compared to the past, the immediate context for this price adjustment may lie in the fact that price competition on delivery platforms has substantially altered brands' sales structures and profit models.
In the third quarter, KFC's delivery sales grew 33% year-on-year, and its contribution to total restaurant revenue increased to 51%, up from 40% in the same period last year.
For chain restaurant brands, the growth of delivery services has generally led to increased delivery costs, diverted orders from proprietary channels, and potentially caused fluctuations in profit margins.
KFC has implemented numerous countermeasures: for instance, improving dine-in efficiency per square meter through a "side-by-side" model, innovating products based on core ingredients to control costs, and leveraging its vast membership system and in-house delivery team to reduce reliance on third-party platforms.
Yum China CEO Joey Wat stated during the Q3 earnings call that by utilizing its delivery business, Yum China has successfully driven customer traffic while safeguarding profit margins, seizing current opportunities while maintaining its long-term brand positioning.
However, as delivery subsidies taper off, how to ensure long-term profitability and achieve sustainable growth remains a core challenge requiring careful planning for restaurant brands.
Yum China plans that by 2028, when the total number of stores exceeds 25,000, the group aims to increase its operating profit margin to no less than 11.5%, while the profit margin for KFC brand restaurants will be no lower than the 17.3% level targeted for 2025.
Neither the external environment nor the company's own structure is static; this "economic calculation" for Yum China still requires ongoing fine-tuning within a dynamic equilibrium.
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