Australian QSRs turn to chicken as meat costs climb

Chicken is helping operators manage costs as consumers cut dining frequency.

Australian quick-service restaurants are putting more chicken on menus as high beef and lamb costs squeeze margins, helping fuel the sector’s strongest store growth in a decade.

Beef and lamb prices remain elevated as strong US and Chinese demand absorbs Australian supply, keeping costs high for domestic operators.

“Brands aren’t just adding chicken because it’s cheap; they’re adding it because it stretches across more of the week,” Sam Stalley, a senior research consultant at Fonto, said in an emailed reply to questions.

The fast-food sector added 250 net stores in 2025, with Oporto, El Jannah, KFC and Nando’s among the brands expanding their footprints, according to a GapMaps report in March.

Chicken offers consistent portion sizes, cooking times, and quality whilst working across meals and occasions, Stalley said. Its versatility also lets operators use the protein across lunch, dinner, family meals and snacks.

Cost pressures extend beyond ingredients. The government raised minimum wages 4.75% in July after a 3.5% increase last year, whilst energy and transport costs remain elevated. Wages are the biggest controllable cost for many operators.

Demand is also becoming a challenge. Fonto data showed 98% of Australians aged 18 to 64 made at least one QSR purchase this year, but the average customer made 2.5 fewer visits than a year earlier.

Operators are responding by either defending customer frequency through value offers or focusing on store-level profitability. KFC has promoted bundled entry-price meals, whilst Red Rooster and Subway have used value-focused meal deals.

Domino’s Pizza Enterprises Ltd., meanwhile, has reduced deep discounting, raised prices, and closed underperforming stores across Australia and New Zealand to improve franchisee profitability.

“Excellence in execution means speed, quality, and consistency, but that’s now table stakes,” Stalley said. “What separates the truly exceptional operators is doing this faster and better than ever before—technology will assist with this.”

Guzman y Gomez has rolled out an artificial intelligence (AI) order management system nationally that assigns orders to prep lines based on demand, letting kitchens balance workloads.

Stalley said operators should judge such systems by order accuracy and waiting times rather than headcount reductions.
He also expects brands to compete around occasions rather than individual products.

Yo-Chi, for example, targets casual social gatherings, whilst Grill’d’s Mad Bunday promotion links customers through its app and offers a burger when teams meet spending and performance conditions.

QSR spending is likely to remain within a narrow range of $1,150 to $1,250 per Australian over the next year, Stalley said.

AI is also likely to become more common, with KFC and Hungry Jack’s trialling voice ordering at drive-throughs. Kitchen applications are likely to deliver the most immediate gains, he said.

Flavour preferences are also shifting. Mexican food has moved into the mainstream through Guzman y Gomez, Zambrero and Mad Mex, whilst Korean and Middle Eastern flavours could gain wider appeal.

Hear more from Sam Stalley at the QSR Media Conference & Awards 2026 at the Sheraton Grand Sydney Hyde Park on 12 October.