The cost of your favorite KFC meal has increased.
Simon Hardy, CEO of the fast food chains local parent company, Prestige Holdings, said that the price increase was due to the increase in minimum wage, which took effect on January 1, as well as price increases from suppliers.
The adjustments of between three to five per cent have already been implemented.
The last price increase was in December 2023 which was between $1-2.
Harding said: “The main jump for us was the minimum wage as we employ 3,300 people. We only made the changes on February 22. But inevitably, a business such as ours can’t, with an employee base such as ours, hold those prices forever. Just making a little comparison, you know. Everyone thinks that there’s a lot of profit being made. We are a high-sales business but a low-margin business, only 4.2 per cent of our sales is profit. So, we have a lot of sales, but it’s not a lot of profit.”
However, on Monday, Prestige Holdings Ltd declared audited after-tax profits of $55.9 million for the financial year ended November 30, 2023, an increase of 57.7 per cent over the $35.5 million the restaurant company earned for the same period in 2022.
In consolidated results for the 12 months ended November 30, 2023, Prestige Holdings generated $1.32 billion in revenue, 20 per cent more than the $1.10 billion the company recorded in its 2022 financial year.