Hundreds of KFC restaurants in Australia to lift prices, as inflation in the country continues to bite.
Collins Foods, which owns 253 KFC outlets, said item prices to go up despite the price hikes earlier this year in January.
The food company announced the possibility of price hikes on Tuesday and revealed that rising inflation is the cause of the jump in prices.
“While we are planning a higher level of menu pricing than historically. I need to take pains to point out this is exactly the environment we want to be winning in value,” Mr. O’Malley said in a conference call.
“We’ve got to be careful of not getting too far out in front of our consumer to erode the work that’s been done over the past decade.”
“While menu pricing is factoring into our efforts to offset margin pressures, we will continue to keep value at the centre of our customer appeal. While some margin compression in the short-term is unavoidable, in the mid-term we expect margins to recover,” he said.
Last week, the fast-food giant announced the mix of lettuce and cabbage in their meals due to the shortage of lettuce nationwide.
The shortage of lettuce forced KFC to add cabbage to most of their burgers to curb the prices for customers.
