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fter McDonald's recent move to raise prices for the second time in India this year, fast-food behemoth KFC India is also hinting that prices could be raised.
Tarun Lal, general manager, KFC India & Area Countries, said, "Due to very strong inflationary pressures and our business needs, we will be compelled to look at prices.
However, our core values mean offering the best at the most compelling prices. We would like to keep consumers' interest in mind, and realise that there is inflationary pressure on them as well. So, we will relook at prices for some items. Our recently launched WOW range, priced at only Rs.25, will remain untouched."
This week, Hardcastle indicated that Happy Meals won't be happy anymore by announcing increase in its prices by further five to six per cent-the second price hike by the company in a year-due to the economic slowdown, rising inflation and the increase in service tax.
Amit Jatia, vice-chairman, Hardcastle, franchise for McDonalds West and South India, had said, "There is pressure and it's a tough environment no doubt. But inflation is at eight-ten per cent; so, we have to hike our prices."
It will be interesting to see how the matter plays out as this will result in major developments in the fast food sector. Initially, KFC had slashed prices to be in the same segment as McDonald's. But with the hamburger giant deciding to increase prices, KFC might try getting an edge over its competitor.
On one hand, the competition between KFC and McDonald's may further intensify, on the other, prices will increase unanimously across the fast food sector.
fter McDonald's recent move to raise prices for the second time in India this year, fast-food behemoth KFC India is also hinting that prices could be raised.
Tarun Lal, general manager, KFC India & Area Countries, said, "Due to very strong inflationary pressures and our business needs, we will be compelled to look at prices.
However, our core values mean offering the best at the most compelling prices. We would like to keep consumers' interest in mind, and realise that there is inflationary pressure on them as well. So, we will relook at prices for some items. Our recently launched WOW range, priced at only Rs.25, will remain untouched."
This week, Hardcastle indicated that Happy Meals won't be happy anymore by announcing increase in its prices by further five to six per cent-the second price hike by the company in a year-due to the economic slowdown, rising inflation and the increase in service tax.