Kentucky Fried Chicken is going to increase food prices in more than 1700 outlets all around China starting Christmas Day.
KFC's parent company Yum! China says that from December 25, 2006 KFC will start adjusting the price of some products. Yum! China says that this price hike only targets some KFC products and some food items will be priced RMB0.5 more than the current level.
Referring to the reason for the price hike, Yum! China says that due to the cost of labor, price shifts in the market and the increase of other costs such as water, electricity and rent, it is necessary now to increase some prices. Yum! hasn't yet released the names of the food whose prices will be increased.
Covering all provinces and regions in mainland China except Tibet, KFC is the largest and most rapidly growing fast food chain in China. This is going to be the second major time for KFC to mark up its food prices in China.