Price Hike On The Way As KFC Hits Bit Of An Iceberg With Lettuce Shortage

Cabbage on the menu

Article heading image for Price Hike On The Way As KFC Hits Bit Of An Iceberg With Lettuce Shortage

Luke Sharrett/Bloomberg

Fast food giant KFC are set to increase menu prices across Australia amid rising costs of vegetables.

Major franchise operator of KFC and Taco Bell outlets in Australia, Collins Foods warns fast-food restaurant owners will likely hike up prices but will keep increases to a minimum to maintain customer satisfaction.

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The boss of 261 Australian KFC stores, Chief Executive Drew O’Malley said the company tended to be “very carful” when lifting menu prices.

“This is a brand that for 10-years has taken menu prices below CPI every year,” he told The Australian on Tuesday.

The third price hike this year, changes to the menu earlier this month were cited on “lettuce supple chain disruptions due to the impacts of the Queensland and NSW floods,” which saw iceberg lettuces going for as much as $12 in some states.

“We have introduced a blend of 60-40, lettuce and cabbage. We think that’s probably going to be required for the next four to six weeks or so

“But ultimately we look forward to returning to the traditional iceberg lettuce,” Mr O’Malley said.


KFC’s website state’s they have hit bit of an Iceberg:

“We’ve hit a bit of an Iceberg and are currently experiencing some lettuce supply chain disruptions. This means you may see a temporary blend of lettuce and cabbage throughout KFC restaurants except those in NT & SA. If that’s not your bag, simply click ‘Customise’ on your chosen product and remove lettuce from the recipe,” a statement on the website said. 

Collins Foods, whose fast-food chains are located across Australia, Asia and Europe, recorded a bumper year, reporting an 11.1 per cent increase in full-year revenue on Monday, with profit up 68 per cent to $54.8m.

Mr O’Malley said KFC was in a strong financial position coming out of Covid-19 with KFC now viewed as providing better value for money than arch rival McDonald's’.


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Hit News Team

29 June 2022

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