Following McDonald's, KFC has also initiated a new round of price adjustments.
Starting from January 26, KFC has made slight adjustments to the prices of its delivery products, with an average adjustment amount of 0.8 yuan, while dine-in prices remain unchanged.
Popular promotional meal sets such as &#34;Crazy Thursday,&#34; &#34;Weekend Crazy Deal,&#34; and &#34;OK Meal Set&#34; have not been affected by the price changes.
KFC stated that this adjustment is mainly &#34;to better respond to changes in operating costs and maintain stable and healthy operations.&#34;
In recent years, chain fast-food brands have generally viewed price adjustments as a routine measure to cope with changes in market costs.
At the end of 2024, KFC had previously made price adjustments ranging from 0.5 yuan to 2 yuan, with an average increase of 2%; earlier in 2022, due to factors such as global supply chain issues, the average increase reached approximately 6.2%.
However, compared to the past, the direct background of this price adjustment may be that the price competition on delivery platforms has substantially changed the brand's sales structure and profit model.
In the third quarter, KFC's delivery sales increased by 33% year-on-year, with the proportion of total restaurant revenue rising from 40% in the same period last year to 51%.
For chain restaurant brands, the growth of delivery business generally brings about an increase in delivery costs and diverts orders from their own channels, which may impact profit margins.
KFC has already implemented various responses: for example, improving dine-in efficiency through the &#34;Shoulder to Shoulder&#34; model, innovating products based on core ingredients to control costs, and relying on a large membership system and self-delivery team to reduce dependence on third-party platforms.
YUM China CEO Joey Wat stated in the third-quarter earnings call that by leveraging the delivery business, YUM China successfully increased customer traffic while ensuring profit margins, seizing current opportunities while maintaining long-term brand positioning.
However, as delivery subsidies decline, ensuring long-term benefits and achieving sustainable growth remains a core challenge that restaurant brands need to plan for carefully.
YUM China's plan aims to exceed 25,000 stores by 2028, with the group's target operating profit margin set to rise to no less than 11.5%, while the profit margin for KFC brand restaurants will not be lower than 17.3% in 2025.
Both the external environment and internal structure are not static; YUM China's &#34;economic account&#34; still needs to be continuously calculated in dynamic balance

EATZ

YUMC

- KFC has initiated a slight price adjustment to its delivery products, effective January 26, with an average increase of 0.8 yuan, while dine-in prices remain unchanged.  
- The price changes aim to manage operational costs and maintain stable operations, amidst increasing competition in the delivery market that alters brand sales structures and profitability.  
- CEO Wu Cuirong highlighted that KFC plans to achieve a minimum operating profit margin of 11.5% by 2028, with ongoing challenges in maintaining long-term benefits amid decreasing delivery subsidies.

After KFC's takeout contribution exceeded half, price increases have begun