KFC Australia revenues surges 10%, eyes 12 more restaurants for 2024
The fast-food brand also reported surpassing $1b in revenue for the first time.
Collins Foods Limited, the master franchisor of KFC Australia, reported a 10% jump in revenues for the fast-food brand to $1.05b for the full year ended 30 April 2023.
KFC also reported same-store sales to grow by 5.8% due to higher ticket sizes, significant e-commerce growth, and the rollout of Uber Eats.
Transaction volumes remained broadly flat in the prior corresponding period, in line with the overall Australian Quick Service Restaurant (QSR) market. Underlying EBITDA of $201.6m was down 2.5%, with EBITDA margin consistent with previous guidance given ongoing inflationary pressures across labour and supply chains.
KFC reported that delivery, web and app represented almost a quarter of all sales in the second half of FY2023, up from 16.9% last year, underpinned by increased accessibility with partnerships across all major aggregators, including Uber Eats.
Investment in new software to support enhanced customer adoption of KFC’s app and in-store kiosks is increasing digital ordering and driving higher conversion of personalised offers. Eleven new restaurants were added to the Collins Foods network in FY2023, inclusive of one acquisition. KFC said it continues to track ahead of its development agreement of seven new restaurants annually.
“KFC’s continued market leadership in value, quality and taste metrics has validated its strategy to prioritise long-term brand health over short-term margin pressures. We recognise that today’s consumers are facing unprecedented conditions, and by keeping menu prices highly competitive, we continue to re-earn the trust that consumers have built in the KFC brand. We will continue to ensure that KFC is synonymous with value as we move into an even more challenging retail environment, attracting customers trading down from more expensive options and re-engaging light and lapsed users,” Collins Foods Managing Director & CEO, Drew O’Malley said.
“Simultaneously, we will continue to look for new ways to excite and increase our customer base. E-commerce remains a significant growth driver and continues to unlock additional opportunities for the brand, enabling us to personalise customer engagement with exclusive app-only promotions. Innovations in restaurant design and technology support our changing order mix, with designated delivery-driver entrances in new build and high-mix restaurants improving the experience for both customers and aggregator partners.”
KFC said that it is eyeing opening nine to 12 new restaurants in 2024.
