December 4, 2007

KFC Thailand may raise prices next year

Fried-chicken fast-food chain KFC announced the possible increase of its prices in 2008 after shouldering rising costs of main ingredients this year.

Waewkanee Assoratgoon, marketing director for subsidiary Yum Restaurants Inter-national (Thailand), explained that there are no definite price rates yet because it would depend on rises in production costs and how much the company can absorb them.

Prices of the main ingredients - vegetable oil, chicken and wheat flour - have increased 20-30 percent this year.

KFC, Thailand's largest fried-chicken restaurant, is the market leader for fast food, enjoying up to 50 percent of the US$421-million market.

Although customer spending per head now averages US$2.26, up 10 percent from last year, KFC adjusted its target growth from 30 to 20 percent this year and also expects growth of 20 percent next year, Waewkanee said.

Meanwhile, KFC plans to spend US$16 million to open 27 new branches next year. It currently has 314 branches.