Iceberg will fully return to KFC burgers in the spring, said Collins Foods CEO Drew O’Malley, while the fast food chain brand will raise prices for the third time this year in response to the rise of product costs.
Floods on Australia’s east coast earlier this year have caused a shortage of many types of fresh produce, including lettuce, at prices of up to $ 12 per head, forcing fast food establishments such as KFC or Subway to partially replace it with cabbage, or to leave it completely. .
KFC hopes to drop its lettuce-cabbage mix in two months. Credit: Mark Merton
KFC outlets, excluding those in the Northern Territory and South Australia, currently use a 60/40 mixture of lettuce and cabbage, but it will soon no longer be necessary, O’Malley said.
“The harvest was decimated. We think it’s short-term,” he told The Sydney Morning Herald and The Age. Although customers had understood the change, “we believe that in the next five or seven weeks we will probably see a return to normalcy.”
O’Malley made his comments after Collins Foods, which operates KFC in Australia and Europe, as well as Taco Bell in Australia and Sizzler in Asia, revealed a 25% increase in net income to $ 59.7 million for in fiscal year 2022.
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Global revenue increased 11.1%, driven by KFC Europe, which increased revenue by 41.2% to $ 190.4 million. Sales at KFC Australia rose 6.1% to $ 955.5 million.
The price of Collins Foods shares soared after the result, and around 2:30 p.m., it rose more than 11 percent to $ 9.98 on the ASX.
O’Malley attributed KFC’s growth to its brand positioning as value for money. Marketing campaigns such as “Did anyone say KFC?” The ads have also kept the brand at the forefront of consumers, he added.