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Malaysia wants KFC's written explanation for price hike

Malaysia wants KFC's written explanation for price hike

A Kentucky Fried Chicken (KFC) bucket of fried chicken is seen in this picture illustration taken April 6, 2017. REUTERS/Carlo Allegri

PUTRAJAYA: Malaysian authorities have called for a written explanation from QSR Brands (M) Holdings - the company that operates Kentucky Fried Chicken (KFC) - on the price increase of the fast-food chain's dishes.

This despite the fact that the company had given its reasons, Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail said on Monday (Jan 7).

"KFC has pre-conditions in obtaining ingredients and are bound by the franchisor-franchisee agreement. For instance, even if there are suppliers who can provide ingredients like cheese at cheaper prices, KFC cannot buy from these suppliers because they are bound by the agreements. That was KFC’s reason.

“The agreement binds them, They have suppliers who are listed. This ensures uniformity of taste of KFC products,” he told reporters after attending the ministry’s Excellent Service Award ceremony.

Saifuddin said in the meeting with the chairman of QSR Brands (M) Holdings Kamaruzzaman Abu Kassim on Friday, that his ministry handed the company a notice under the Price Control and Anti-Profiteering Act asking for a written explanation.

"During the meeting, I told them of the consumers’ unhappiness and reminded them to be sensitive to the public and alert to the government’s commitment to tackling the increasing cost of living,” he said.

Consumers have voiced their dissatisfaction on social media over the increase in price of KFC chicken which they said were too high. A snack plate set which was previously priced at RM12.30 is now RM15.30 while a dinner plate which was RM15.60 is now RM19.60.

Saifuddin said he would also hold a meeting with the management of McDonald’s over the same issue.

Asked about the increase in the price of eggs at the Datuk Keramat market raised by former prime minister Najib Razak, Saifuddin said the enforcement team which observed the market had submitted a report to him.

“I have not yet read the report. I urge Datuk Seri Najib to help KPDNHEP (Domestic Trade and Consumer Affairs ministry) more on issues connected to consumers,” he said.


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