KFC starts selling chicken feet and necks in China to battle soaring costs
Chicken feet and necks are part of KFC China's new, incredibly generous bucket. The shift was caused, according to Yum China's CEO, by increased oil prices rather than consumer demand.
The business declared that it had also reinstated the buffet choice at Pizza Hut eateries. According to KFC's CEO, the company has begun selling chicken feet in China in an effort to combat rising prices.
Yum China, which owns KFC, Pizza Hut, and Taco Bell, told investors last week that chicken feet had been introduced to the menu to combat rising energy expenses.
CNN Business interviewed CEO Joey Wat. Yum used numerous resources to cut costs. Although chicken feet are a popular dish in China, rising prices prompted the decision.
Wat stated on the July 29 call that "prices of commodities such as cooking oil and beef as well as electricity have increased significantly this year."
"On the labour side, we anticipate a slowing in labour inflation as a result of the downward economic pressure. The increasing mix in delivery sales will, however, probably result in higher rider costs."
Wat said that Pizza Hut had brought back their buffet option and that KFC China had introduced the "super bountiful chicken bucket," which comprised various chicken pieces.
This bucket includes components traditionally favoured by Chinese people, such as chicken feet, wing tips, and necks. For some of the analysts who had previously questioned me about the timing of the sale of chicken feet.
Wat told CNN that the corporation will utilise everything "except the feather, I guess" in an effort to absorb the increase in commodities prices.
Wat informed investors that the actions were being taken to prevent the need to fire any of its 450,000 Chinese employees after reporting a 16 percent drop in revenue year over year.