March 20, 2008

KFC Japan to implement 6.8 percent price hike

Kentucky Fried Chicken (KFC) Japan Ltd. has announced on Wednesday that an average 6.8 percent or JPY 40 price hike for 22 of its food items is impending due to soaring ingredients costs.

The price increase will be in effect from April 24, 2008 onwards, and it is the international fast-food chain's first price hike since April 1992.

Food items to receive the rise include the company's famous fried chicken and sandwiches. The price of 'original chicken' will rise to JPY 230 per piece from its current JPY 210 per piece.

The move is an effort to offset the sharp price increase of ingredients such as flour and cooking oil, according to KFC Japan.

Chicken prices have also increased due to a chain effect of skyrocketing feed costs.

KFC Japan said it has no choice but to increase product prices in order to sustain the quality of products and services. 

JPY 1 =US$0.01 (March 20, 2008)