Reward 10000 Tiger-coinsKFC will increase its prices for the third time in 2022 as raw material costs continue to rise. What do you think of the recent KFC price increase?
Collins Foods will increase its prices for the third time in 2022
$Collins Foods(CKF.AU)$ , which operates 261 KFC outlets in Australia, reported full-year results on Monday. Its full-year revenue was up 11.1 percent increase to $1.18 billion, with profit up 47 per cent to $54.8 million.
The chief executive of Collins Foods, Drew O'Malley, said the increase in menu prices would help boost margins after profit had been squeezed by inflation in the last financial year. After the news was announced, the CKF share price rose 11.52% per cent to $9.97.
KFC will increase its prices for the third time in 2022. The increase will likely be between 1 and 2 percent, following similar increases in January and June.Mr O’Malley said KFC would also keep stuffing its burgers with a mix of cabbage and lettuce for several more weeks as supplies remained curtailed.
Food shortage in Australia
Can you imagine the price of iceberg lettuce rising more than 500% from 1.2 to 12 Australian dollars in just a few months?
The recent spike in food prices in Australia has made some low-income families unable to afford fresh fruits, vegetables, and meat and can only choose canned and long-lasting foods instead.
Fast-food restaurants, known for their low prices, have been faced with price increases and food shortages. According to Agence France-Presse, “We’re currently experiencing a lettuce shortage. So, we’re using a lettuce and cabbage blend on all products containing lettuce until further notice,” KFC said.
Due to flooding in Queensland and New South Wales, lettuce supply chains were disrupted in the short term.
In the long-term, Ukraine and Russia conflict has affected global food production system. Ukraine and Russia account for 30 per cent of the world’s wheat production. Months of war between the two countries have led to a reduction in food production and exports, resulting in an imbalance in global supply chains and an increase in food prices.
What do you think of the recent KFC price increase?
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⏰Activity Duration
28 June, 2022-1 July, 2022
Comments
KFC Australia has a strong brand moat. In fact according to Roy Morgan's survey, KFC is the 2nd most popular quick service restaurant chain after McDonald's with 6.8 million customers in an average 4 weeks period in Australia.
Customers who love to eat KFC will continue to pay the new price increase in Australia even though this is the 3rd price increase within a year. That is the power of a strong brand moat! Besides the price increase is a reasonable 1 to 2% each time, not a massive 10 to 20%. After all KFC is too"Finger Lickin Good" to miss!
@Tiger_AU