KFC customers in China may soon be tucking into chicken feet as part of their two-piece meals. But this change in the menu isn’t due to cultural considerations, it’s because of price inflation.
Surging oil and food prices have “significantly” increased business costs.
The CEO of Yum China, a company which owns KFC, Pizza Hut and Taco Bell chains in China, said that the commodity price increase was absorbed by the “full utilisation” of the chicken.
CEO Joey Wat added that this means using “every part” of the chicken except for its feathers.
The restaurant chains have been undergoing tough times, with China’s frequent lockdowns to maintain its “zero Covid” strategy affecting business.
Sales at Yum China’s locations open for at least a year dropped 16 per cent compared with the same period the year before.
However, demand for deliveries has risen by about 8 per cent. Wat revealed that the company has taken action to cut costs, including rolling back on advertising and marketing and asking landlords for rent relief.
She also pledged to avoid laying off staff this year, with Yum China employing around 450,000 people.
Along with another pledge not to raise prices charged for meals, the company is looking at any way it can to cut costs including using every part of a chicken.