Kentucky Fried Chicken has raised its prices for breakfasts, chicken meals and beverages this week, as it admits to be under "huge cost pressure". Restaurants across China's cities are battling to avoid passing on the increasingly high costs of food products to consumers, especially for meat and dairy goods. KFC's price rises vary between RMB0.5 and RMB1.5, which analysts say could be significant in a notoriously price sensitive sector.
Rising costs for food, water and electricity across China prompted KFC
to up its prices. "We will try to keep the prices stable if we can
still bear the burden of rising costs," Market Avenue quoted Sarah Bai,
KFC's Public Relations Manager. The company is under "huge cost
pressure" and is faced by shrinking profit margins, she added.
In January, McDonald's raised its food prices, blaming China's new labour contract law and rising costs for key ingredients.
News & Features 
Kentucky Fried Chicken has raised its prices for breakfasts, chicken meals and beverages this week, as it admits to be under "huge cost pressure". Restaurants across China's cities are battling to avoid passing on the increasingly high costs of food products to consumers, especially for meat and dairy goods. KFC's price rises vary between RMB0.5 and RMB1.5, which analysts say could be significant in a notoriously price sensitive sector.
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