After reports last year that fast food giant KFC would be incrementally increasing its menu prices, fans of the fast food chain have discovered the latest hit to their hip pockets this week.
A disappointed KFC diner detailed the retailer's latest price hikes in a Reddit post, revealing increases across a range of items, with some going up twice in the past year alone.
The Reddit user listed several affected items, noting that all KFC Kids' Meals and Zinger Combos have increased by 50 cents, taking them to $5.45 and $10.95 respectively. He also explained that "all the feasts are now $1 more expensive" and "sliders went from $2.95 to $3.45". While the latest price increases did not extend to Zinger Boxes, the man was disappointed to find frozen drinks have jumped from $1.00 to $1.50.
The customer also said the price of Go Buckets had increased to $5.45 after jumping from $3.95 to $4.95 last year, however the KFC website still lists them at $4.95.
Price hikes flagged by KFC owner
KFC declined to comment about the latest changes, but they're not altogether unexpected, as the likelihood of further price rises was flagged in June last year by Drew O'Malley, chief executive of Collins Foods, which owns 263 KFC outlets across Australia. At the time, Mr O'Malley confirmed that KFC customers were "likely to see more [price hikes] in the year ahead" after bumps in January and June 2022, citing rising inflation as the reason behind the previous increases.
Mr O'Malley didn't specify when the third price increase would come into effect but the time appears to be upon us, with the company continuing to battle higher costs of ingredients including chicken, lettuce and cooking oil.
KFC battles inflation
The differences in costs are not expected to be covered until 2025, with Collins Foods' half-year results stating that "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".
The last time prices were raised, Mr O'Malley said value is still at top of mind for KFC, even in the current climate. "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," he stated.
KFC's price hikes come as a group of the country's biggest food producers warn Aussie consumers that grocery prices at Woolworths, Coles and other Australian retailers are also expected to rise by as much as six to eight per cent in the next year.
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