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Published on November 29, 2007

Prices of the main ingredients - vegetable oil, chicken and wheat flour - have increased 20-30 per cent this year.

"We cannot say what the new prices will be next year, because that will depend mainly on rises in production costs and how much we can absorb them," Waewkanee said.

KFC, Thailand's largest fried-chicken restaurant, is the market leader for fast food, enjoying up to 50 per cent of the Bt13-billion market, although KFC's sales have grown only 20 per cent this year, lower than the target of 30 per cent.

Waewkanee said the company set this year's sales target in mid-2006, prior to the September 19 coup. As a result, KFC has had to adjust this year's target to reflect a drop in consumer spending.

"Although customer spending per head now averages Bt70, up 10 per cent from last year, we've adjusted our target growth from 30 per cent to 20 per cent this year and also expect growth of only 20 per cent next year," she said.

To boost year-end sales, KFC launched its new garlic chicken yesterday. It will be served in KFC branches from tomorrow until next January 3 as part of New Year's celebrations. The company has earmarked a Bt20-million market budget to promote the campaign. Pop singer Nicole Theriault and her son will be presenters for the campaign targeting the family market.

Meanwhile, KFC plans to spend Bt500 million to open 27 new branches next year. It now has 314 branches.

 Somluck Srimalee

 The Nation