Yum battles on despite fall-off in consumer numbers

The move comes despite a fall-off in customer traffic.

Managing director Sran Smutkochorn yesterday said his company had so far recorded satisfactory sales growth in the first half of the year.

KFC has enjoyed 16-per-cent sales growth, due to its continuing popularity, the launch of new menu items and marketing campaigns, its policy of maintaining current prices for food and its delivery service.

The company has opened 19 new KFC branches nationwide, which accounted for 9 per cent of the 16-per-cent sales growth, Sran said.

Another 20 branches will open in the second half, after which KFC will have 350 branches.

In terms of pricing, the company has had to adjust its operations and ask for cooperation from its business partners to help improve their systems and maximise cost efficiency.

Sran said Yum was reluctant to increase prices, because customers were quite sensitive to price changes, because many were families who already had to shoulder the financial burden of school fees, student uniforms and other necessary items.

In terms of customer purchases per bill, KFC has seen a slight increase to an average of Bt130 for those eating in the restaurants and Bt300 for those using the delivery service.

However, he admitted Yum would have to work very hard to maintain its business amid the current unfavourable economic and political climate.

Regarding the industry as a whole, Sran cited an ACNielsen survey that found consumers were visiting fast-food restaurants less often than before. At the same time, more people are ordering food via delivery services. KFC's delivery-service sales have grown 30 per cent so far during this first half.

Yum's Pizza Hut chain raised its prices 3 per cent in March. It plans to open 10 more branches this year in addition to two it opened already in the this first half.

Yum expects Pizza Hut to achieve 15-per-cent sales growth this year, while KFC expects sales to rise 15-20 per cent.