Column 1:
a. 220111Tu-Melbourne’HeraldSun’-Lenard’s [branch uncertain]
b. 220111Tu-Melbourne’HeraldSun’-KFC-Brisbane [branch uncertain]
c. 220111Tu-Melbourne’HeraldSun’-KFC-Punchbowl(Sydney,NSW)
d. 220309W-Melbourne’HeraldSun’-fast.food.
Column 2:
a. 220324Th-Melbourne’HeraldSun’-fast.food-trends.
b. 220324Th-Melbourne’HeraldSun’-fast.food-trends. Domino’s CEO Don Meij
c. 220604Sa-Melbourne’HeraldSun’-Wollert-KFC
d. 220309W-Melbourne’HeraldSun’-fast.food. Brothers Reegan 14 and Arun 10 are being bombarded with digital marketing for gambling, alcohol and fast food. Picture: David Caird
Column 3:
a. 220314M-CairnsPost-McDonald’s-Gordonvale (Qld)
b. 220314M-CairnsPost-McDonald’s-Redlynch (Qld)
c. 220324Th-Melbourne’HeraldSun’-fast.food-trends. KFC Buderim
d. 220309W-Melbourne’HeraldSun’-fast.food. School kids line up at about 3pm at McDonald’s after school.
Column 4:
a. 220309W-Melbourne’Age’-McDonald’s
b. 220314M-CairnsPost-McDonald’s-CairnsCentral (Qld)
c. 220324Th-Melbourne’HeraldSun’-fast.food-trends. Arndell Park McDonald’s
d. 200116Th ‘CanberraTimes’ (ACT, Australia): fast-food kitchen. From memory, this was illustrating one serving people being evacuated from bushfire zones.
What Macca’s and KFC can tell us about Covid food shortages. Eric Johnston January 11, 2022 Australian Business Network 51 comments
Forget supermarkets, when fast food players start pulling nuggets, fillets and burgers from their menu that’s when it is time to get worried.
Fast food operators prefer to use the term ‘quick service restaurants’ and they rely on huge volumes of food delivered fresh daily across the country. Above, a KFC in Brisbane.
Forget shortages in supermarkets, when thousands of fast food outlets start pulling nuggets, fillets and burgers from their menus that’s when it is time to worry.
For now players including McDonald’s, Hungry Jack’s and Domino’s Pizza are confident they can operate on a business as usual basis despite the Omicron spread shredding parts of the nation’s supply chain. But many concede the next two weeks will be critical.
KFC has already started to experience some shortages given suppliers such as Inghams are now operating at a fraction of capacity, meaning some of its restaurants are unable to offer a full menu of fried chicken.
“We’re working with our multiple suppliers to mitigate the impact and provide them with support, but we expect some disruptions to continue in the coming weeks,” a spokesman for KFC owner Collins Foods said.
Fast food operators prefer to use the term “quick service restaurants” and they rely on huge volumes of food delivered fresh daily across the country.
And given the high velocity of sales, fast food mostly operates under “just in time” rules which mean there is little room for error in delivery schedules.
Several major fast food franchise operators were understood to be seeking talks with Inghams on Tuesday – one of the sector’s biggest suppliers – following the chicken processor’s warning that it was experiencing “disrupted production” and distribution pressures due to Covid fallout.
McDonald’s says its working with its suppliers in Australia.
Ingham’s Group chief Andrew Reeve said many of his employees were being forced to isolate at home due to either contracting Covid in the community or as a result of being close contacts. This had resulted in volume changes “and the temporary suspension of a number of Inghams products”.
Ingham’s shares fell 6 per cent on Tuesday, and Collins Foods was off 3.5 per cent.
The Ingham’s warning followed the Australian Chicken Meat Federation this week saying that processing facilities were operating at just 15 to 40 per cent of the required staff.
Deputy Prime Minister Barnaby Joyce helpfully pointed out that Australia did not have a food shortage problem, but a supply chain problem. However you describe it, if the food can’t make it to the destination it then becomes a shortage problem for the retailer and customer.
Fast-spreading Covid infections and forced isolation have hit the meat processing industry hard. When the pandemic initially hit Australia nearly two years ago it became clear the cold temperatures and close working conditions of the meat boners were a haven for spreading the virus, and the rapid spread of the Omicron variant has added to complexity.
Inghams Group has suffered staffing shortages due to Covid. Picture: AAP Image/Richard Gosling
While NSW and Victoria have been the hardest hit by the outbreak, Inghams is finding it difficult to have plants in other states pick up the extra capacity because of the national spread of the virus.
Procurement teams across the fast-food sector are working overtime sourcing food, but it understood the suppliers will opt to cut back on other parts of the business to ensure orders with fast food operators are fulfilled.
As well as being among their biggest customers, quick service restaurants don’t regularly undertake discounting which cuts into the profit margins of suppliers like Ingham’s.
At the same time an operator like Ingham’s can divert production on frozen food, which has a longer shelf life, to focus resources on fresh food. The company indicated this on Tuesday when it flagged product mix would be one of the levers it was pulling.
One major fast food operator said that even with Inghams’ headaches not all supply chain squeezes are the same. This means that problems in Victoria don’t necessarily mean problems for food outlets in Queensland.
Pizza giant Domino’s which is also listed on the ASX has felt some pockets of staffing shortages in recent weeks, and while it is feeling a supply squeeze in parts of its business, a spokeswoman said “these delays are not impacting our menu or customers at this point in time”.
Pizza giant Domino’s is still offering a full menu.
McDonald’s Australia, which oversees 980 restaurants across the country, said it had been carefully managing its supply chain, adding most of its product was sourced from Australia.
“We continue to work closely with our strong network of long- term suppliers, farmers and producers throughout the pandemic,” a McDonald’s spokeswoman said.
Hungry Jack’s said it was able to “sustain restaurant operations and delivery”. The private equity-backed Craveable Brands, which operates Red Rooster and Oporto, said it was still offering a full chicken menu in Australia.
“Like so many other food providers across Australia, our supply chain is currently experiencing pressures unlike anything we have experienced before,” a spokeswoman said.
“However we are fortunate to have established, robust and long- term partnerships with our supply partners who are enabling us to continue to provide our restaurants with the supplies they need.”
National cabinet is on Thursday expected to endorse a relaxation of Covid isolation requirements for workers in critical industries such as food processing, production and distribution. While this will go some way to alleviating the squeeze, the Covid spread in the sector remains a real factor for worker and transport shortages. So keep watching that menu for any warning signs.
More Coverage: Inghams staff isolate, sparking poultry shortage
www.heraldsun.com.au/business/what-maccas-and-kfc-can-tel…
KFC chicken shortages, reduced menu as supply chain issues bite. Chantelle Francis January 11, 2022. 7 comments
Getting your hands on some KFC chicken isn’t so easy these days, as supply chain issues force the fast food outlet to reduce its menu.
video: Australia facing meat supply shortage There is a warning Australia could be facing a meat shortage within weeks, with workers forced into isolation. Australian Meat Industry Council CEO Patrick Hutchinson told Sky News Australia more rapid tests are needed immediately. “The food supply chain, not just meat, is under immense strain and is about to buckle,” he said. “An industry of our magnitude still struggling to get access is showing the current scenario we’re facing as a nation.”
Fast food company KFC has confirmed it is facing supply shortages on chicken and that some of its restaurants will offer a smaller menu as the Covid-19 pandemic continues to rage on and affect businesses across the country.
“Unfortunately our supply chain has been disrupted, and some of our restaurants will be offering a reduced menu,” a KFC spokesman told news.com.au.
“We’re sorry for any issues this causes our customers – we’re doing everything we can to help our suppliers get back on track.”
Signs declaring sold-out items have popped up at stores in recent days, according to 7News.
“Due to supplier issues, we have no original chicken, zingers, fillets or wings. Please refer to sold-out stickers for available items,” one sign read.
KFC has a reduced menu as supply chain disruptions have caused shortages. Picture: NCA NewsWire / Flavio Brancaleone
It’s not the first time KFC has dealt with a shortage of chicken during the pandemic.
In July 2020 some Victorian stores had to close or reduce opening hours.
Changes were made to isolation requirements for supply chain industries on Monday to deal with the high number of workers in isolation.
Prime Minister Scott Morrison said the change would allow close contacts working in critical food and grocery production, manufacturing, logistics, and distributions facilities to be able to go to work if certain requirements were met.
“So, those who are driving the truck to deliver the food, those stacking the shelves at night, those in the distribution centres, those who are in the abattoirs, the manufacturing places that are producing food,” Mr Morrison said.
Critical workers who are close contacts must get negative rapid antigen test result on day one and take a RAT every second day until day six.
The number of workers in isolation across the supply chain has resulted in empty supermarket shelves. Picture: Glenn Hampson
Last week, Coles introduced buying limits on chicken breasts, chicken thighs, mince and sausages.
In an email to customers, Coles chief executive Steven Cain said he expected it would take “several weeks to fully recover” from supply issues.
“An increase in Covid case numbers in the community has required more people to isolate, which has meant fewer people are available to work in Australia – including in the food industry,” he wrote.
“At Coles this has resulted in disruptions to deliveries from our suppliers which in turn has impacted the availability of some products in our stores.”
Woolworths have not introduced buying limits, but in an email to customers chief executive Brad Banducci said there may be gaps on the shelf or substitutions in online orders because the number of workers in the supply chain in isolation.
“We are experiencing Covid-drive absences of 20 per cent-plus in our distribution centres and 10 per cent-plus in our stores,” he said on Friday.
www.heraldsun.com.au/business/companies/kfc-chicken-short…
Covid sparks poultry shortage as Inghams staff isolate, KFC slashes menu. Jared Lynch January 11, 2022 Australian Business Network
Close contact rules have fuelled staff shortages at Inghams, prompting KFC to reduce its menu and Australians to embrace frozen chooks.
Lenard Poulter, founder of Lenard’s, is considering leasing his own trucks to maintain distribution. Picture: Renae Droop
Pandemic isolation rules have hit the supply of chicken, forcing fast food giant KFC to alter its menu as poultry producer Inghams warns of significant -disruption to output and -distribution.
Food distributors are asking for national cabinet to scrap close contact rules, which mean anyone who shares a home with a person infected with Covid-19 is forced to isolate, regardless of whether they have contracted the coronavirus.
Inghams chief executive Andrew Reeves said the rapid spread of the highly infectious Omicron variant across Australia’s eastern states created “unprecedented challenges” for the company.
“Many Inghams employees (are) being forced to isolate at home due to contracting Covid in the community or as a result of being close contacts,” Mr Reeves said.
“The operational and trading difficulties have resulted in significant operational inefficiency, additional costs and the temporary suspension of a number of Ingham’s products. Inghams is working closely with our customers and we are focused on supplying as much product as possible to customers while the current disruption continues.”
Inghams is one of Australia’s main chicken producers. Along with Steggles and Golden Farms it supplies fast food chain KFC which says the disruption to supplies has forced it to reduce its menu. “KFC is currently experiencing intermittent supply chain disruptions nationally due to Covid-19 related absenteeism at our chicken suppliers, meaning some of our restaurants are unable to offer our full menu, which relies on fresh chicken,” a KFC -spokesman said.
While whole chickens are readily available, cuts that require more processing such as breasts and medallions are in short supply. Inghams shares slumped 6 per cent to $3.32 on Tuesday.
Mr Reeves said it was too early to quantify the hit to earnings.
He said it was “premature to draw any conclusions on the overall impacts on the business and trading results”.
“The company continues to manage the cumulative impacts associated with Covid issues which have arisen through FY22,” Mr Reeves said.
“We will continue to closely manage our working capital and inventory and seek to implement initiatives to minimise the financial and other impacts of Covid through the second half (of the- -financial year).
“We are currently maintaining our Australian processing -operations while seeking to ensure the safety and engagement of our employees, many of who are demonstrating outstanding levels of commitment to work through the current challenges,” he said.
Inghams customer Len Poulter of national franchise chain Lenard’s Chicken said the disruption to supply was likely to spark changes to how chicken is sold, with frozen products becoming more popular, given their longer shelf life.
“We’ve been selling the story that fresh is best. At the end of the day there is not much difference (between fresh and frozen now),” Mr Poulter said, who also supplies chicken to IGA supermarkets.
“We were trying to supply fresh to IGAs but by the time we got there, we were losing four to five days’ shelf life. Consumers don’t want that. So we chose to go with frozen and it’s been successful for us.”
Mr Poulter said he was also considering leasing his own trucks to supply his home market in Brisbane after facing delays from IGA distributor Metcash.
“They are already 48 hours behind the delivery,” he said.
“They’re scrambling to keep up. I’m making sure that we can get stock to them and if they are getting further behind at least I can have one or two drivers on the road delivering stuff to people in Brisbane at least.”.
Robert Ceccato, managing director of distributor Global Food and Wine, said about half his staff of 350 were in isolation, making it -difficult to consistently supply his customers. While welcoming the relaxation of isolation rules in NSW and Queensland, he said a national approach was needed.
“We need to have a national agreement for the whole country or the distribution model will fail,” Mr Ceccato said. “I mean, typically Australians eat 9 million chickens a week and they all come from down south so we wouldn‘t even be able to get them in Queensland unless they relaxed these laws.”
More Coverage: What Macca’s and KFC can tell us about Covid food shortages
www.heraldsun.com.au/business/covid-sparks-poultry-shorta…
No chicken dinner: Ingham’s pauses some products amid staff shortages. Jessica Yun January 11, 2022
One of Australia’s biggest poultry suppliers, Ingham’s, says severe staff shortages caused by the current COVID-19 outbreak has halted production of some items and resulted in lower manufacturing volumes.
Many of Ingham’s items sold in supermarkets include frozen chicken and turkey products.CREDIT:
Ingham’s is a key poultry supplier to McDonald’s and KFC. A KFC spokesperson confirmed with Sydney Morning Herald and the Age that it was experiencing intermittent supply chain disruptions across the nation and “absenteeism” within its chicken suppliers.
“[It means] some of our restaurants are unable to offer our full menu which relies on fresh chicken,” the spokesperson said. “We’re working with our multiple suppliers to mitigate the impact and provide them with support, but we expect some disruptions to continue in the coming weeks.”
Ingham’s warning came as the climbing number of COVID cases across the country has caused staff shortages across nearly all sectors of Australia’s economy and led to empty supermarket shelves as workers right across the supply chain are forced into isolation.
In its business update released on Tuesday, Ingham’s outlined the extent to which its business has been hamstrung by the record level of Omicron-driven COVID cases, as a large proportion of its workforce remains home to isolate.
“The rapid spread of the Omicron variant across eastern Australian states from December 2021 and the resulting staff shortages, are now also having a significant impact on the Australian supply chain, operations, logistics and sales performance of Ingham’s, and some of its suppliers and customers,” the company said in its ASX statement.
“This has disrupted production and distribution capability, and impacted sales.”
While Ingham’s production sites are still operational, “significantly lower” staff levels have meant production volumes have suffered as a result.
“The operational and trading difficulties have resulted in significant operational inefficiency, additional costs and the temporary suspension of a number of Ingham’s products,” said Ingham’s chief executive Andrew Reeves.
The business was focused on supplying as much product as possible to its customers despite the disruption, he added.
“As operating conditions begin to stabilise, we expect our production capacity to recover relatively quickly to meet customer and consumer demand.”
The ASX-listed company said it could not predict how long the current disruption would last and therefore “premature” to draw conclusions on the overall business and trading impact. The company will issue its 2022 financial year first-half results on February 18.
Investors reacted badly to the grim update, battering Ingham’s share price, which was down by 6.66 per cent as of 10:48am.
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CORRECTION An earlier version of this story incorrectly stated that Collins Foods is the parent company of KFC Australia. The parent company is Yum! Brands.
www.smh.com.au/business/companies/no-chicken-dinner-ingha…
* These animals have a terrible short life. I rescued a broiler chicken that couldn’t support its own weight. Who would want to be part of that? Maybe KFC can reinvent itself as Kind-For-Creatures and sell Veg-Burgers?
* Not such a big problem – those frozen chicken in a box products have less chicken than you would hope for and more batter and additives than you would like.
* But you can bet they are still supplying KFC with all the chicken they need.
* Seeing as most of Ingham’s products are crumbed, maybe you should have said the shared price was ‘fried’, not ‘battered’?
* Meanwhile, companies are sacking drivers because they are healthy but unvaccinated. I wonder how long that strategy will continue in this environment?
* I have plenty of meat, including chicken, to last a couple of weeks. We shop mostly at Coles, sometimes Woollies, and the local butcher has plenty of stock, as well as deli items. There seems to be no shortage of frozen seafood, quiche, and so on. We’re ot going to starve.
* To all of you who wanted covid restrictions lifted so that you could just get on with life…. well they were lifted and this sort of shortage is just the beginning. Yes what a great restriction free life.
* Run out of chicken…phew that won’t affect nuggets.
* Time to start watching those old Bush Tucker Man episodes!
* Worry not. The superior economic managers have everything under control.
* So much for Scomo and Dom’s efforts to put business and profits ahead of staff and voters !
* Judging by the meat sections at Coles & Woolies we’ll all be on tofu & legumes as our staples soon.
* legumes and tofu don’t magic themselves onto shelves they are equally as labour and transport intensive as the rest of our supply chain.
* Reminds me of Moscow supermarkets in the 80s.
* Does this mean the poor chickens get to live another day?
* I am sure Australians can cope with a little less chicken on the menu for a while.
* A temporary pause in the scale of suffering for those chickens.
KFC is running out of chicken as omicron hits Inghams. Lucas Baird Jan 11, 2022
Shoppers are facing shortages of pre-breaded schnitzel slices, chicken nuggets and Kievs on store shelves and KFC restaurant trays thanks to supply bottlenecks at major poultry supplier Inghams Group, sparked by the latest wave of COVID-19 cases.
Inghams said on Tuesday it had suspended deliveries of these poultry products amid critical staff shortages and supply chain disruptions caused by the soaring rate of COVID-19 cases and enforced isolations on the east coast.
www.afr.com/companies/agriculture/unprecedented-covid-pro…
Sat.15.1.22 Melbourne ‘Herald Sun’. Supply chain covid 19. YOU know things are getting bad when KFC starts running out of chicken.
Across the country last week signs started appearing at the Colonel’s venues telling disappointed customers there were no zingers, fillets and original recipes to be had.
Australians are not taking it well.
According to Mary Aldred, chief executive of Franchise Council of Australia, which represents 98,000 businesses, the kids on the counters have been copping it.
Last week she raised customer abuse with the federal government as a growing problem.
“It’s huge issue. We’ve seen a giant escalation in the past 12 months and the recent supply problems are making it worse,” she said.
It is not just chicken, of course, the entire food chain is currently affected, as anyone knows who has been inside a supermarket since Christmas.
Across the country last week signs started appearing in Coles and Woolies warning of buying limits on chicken, mince and sausages.
About l0 per cent of the workforce is off work.
In the food and transport industries it’s much higher.
Government sources say the food-processing industry is telling them that about 35 per cent of the workforce is out of action.
The worst affected is the transport industry, where up to half of employees are off work.
The vast majority of these absent workers — about 70 per cent — are isolating, while only 30 per cent are infected.
Which explains the move last week to ease the restrictions around close contacts.
Alas, Australia is destined to be zinger-deprived for a while yet with food production likely to take longer than the rest of the economy to recover once the Omicron wave has peaked.
Vivien Kite, of Australian Chicken Meat Federation, said while companies could predict how many staff would be returning from isolation or having Covid, “what they can’t predict is how many other staff will then call in the next day or the day after that to say they aren’t coming in because they have just turned positive, or just found that they have become a close contact at home”.
She added: “Unfortunately, Australia will have ongoing chicken meat supply disruptions for the next couple of weeks.”
“Fundamentally we don’t have supply issues, we have a workforce problem,” he said.
In other words, the vegetables are sitting in the ground, the problem is getting them harvested, packed and shipped to shelves.
He warned the relief to the worker shortage crisis from bringing close contacts back to work would be shortlived.
“In a few weeks, we will see shelves emptied, garbage piled up in streets and hospitals scrambling for supplies because a sick transport workforce simply cannot load, unload and drive trucks,” he said.
New Victorian campaign to take down unhealthy global brands. Susie O’Brien March 9, 2022
There are calls to limit junk food ads as the startling number of times kids are exposed to it on a simple trip to school is revealed.
video: Obesity costs economy nearly $12 billion. Two in three Australian adults and one in four children are overweight or obese – which can lead to increased risks of heart disease, cancer and type two diabetes.
Some of the biggest global brands are the target of a new campaign to protect Victorian children from an average of 25 unhealthy food and drink ads on the way to school.
Cancer Council Victoria’s Food Fight promotion is calling on the State Government to shield children from advertising that encourages them to consume products linked to cancer and obesity.
They want a 500m buffer zone around schools and a ban on unhealthy ads on public transport and transport infrastructure such as bus shelters, stations and platforms.
The campaign will involve confronting ads on TV, radio and digital channels showing a young schoolgirl being literally hit by unhealthy food and drink as she’s standing at a bus stop.
Companies such as KFC, Chatime, Hungry Jacks, Allens lollies, Big M, Oporto and V energy drinks regularly advertise in places frequented by young people.
Such products make up 60 per cent of the advertisements on public transport, a 2019 study found.
It comes as new research from Cancer Council Victoria, led by Claudia Gascoyne, has found children with high exposure to food and drink advertising are twice as likely as those with low exposure to try new products. They are also twice as likely to ask their parents for the food they have seen advertised.
Cancer Council Victoria CEO Mr Todd Harper said it was important to put the health of children above the profits of the fast food industry.
“We all want our kids to enjoy a healthy childhood, free from the influence of unhealthy food and drink advertising. But this is impossible when the processed food industry spends millions of dollars every year to advertise in places where they know children will see it,” he said.
“We know this advertising impacts the quality of their diets, putting their future health at risk by increasing the likelihood of serious disease, including 13 types of cancer later in life.
“Today’s campaign is part of a nationwide approach to work with governments and health groups to raise the issue and protect our children from unhealthy food and drink advertising,” Mr Harper said.
Australian junk food industry has been warned to voluntarily limit advertisements for fast food during children’s TV programs or face regulatory changes.
Ms Jane Martin, executive manager of the Obesity Program at Cancer Council Victoria, said the same measures had worked in other cities around the world such as Amsterdam, London and New York.
“Transport for London’s ban on unhealthy food advertising was associated with an estimated 1000 calorie decrease in energy from unhealthy food and drink purchases in people’s weekly shopping, compared to what was expected without the changes,” she said.
Department of Health has been contacted for comment.
More Coverage
Lunch orders: Parents could be told what snacks to pack for kids
How toddlers’ weight could lead to heart disease
Why Aussie men are some of world’s most obese
www.heraldsun.com.au/news/victoria/new-victorian-campaign…
Fast-food chains reinventing their products as the competition heats up. Eli Greenblat March 24, 2022 Australian Business Network
Changing consumer tastes, an awareness of eating healthy and the rising cost of living is forcing fast-food chains to adapt their menus and become tech savvy to stay relevant.
McHappy Day ambassador Rickie-Lee brings lunch to sisters Addison 4 and Chelsea Bannister 8, of St Ives at the Arndell Park McDonald’s on the 25th birthday celebration of the event.
The fast food war is heating up, and not just in their commercial kitchens where new meal ideas are being cooked up, with the biggest players such as Domino’s, McDonald’s, Hungry Jack’s and KFC increasingly using factors from technology to home delivery to maintain an advantage.
The rivalry comes as the nation’s $22bn fast food sector is grappling multiple challenges, from customers who are demanding healthy meals, centred around lower salt and fat content, to the rising pressure on household budgets as inflation flares and budget-conscious consumers opt to cook at home.
Already some winners are emerging from the fast food pack this year. Chicken, and specifically fried chicken, is proving to be at an advantage when it comes to a combination of healthy choices and cheaper food, while in terms of cost per calories, pizza has been crowned by some analysts as the best bargain for consumers.
To combat the shifting trends and the rising public awareness of the importance of healthy eating, the leading fast food chains have refreshed their menu offers. They have introduced meals that would once never have dared show up at a fast food restaurant, such as salads, sushi, yoghurt, fresh fruit and an emphasis on grilled meat rather than fried, and bottled water rather than high-sugar soft drinks.
Then of course there is the KFC 11-course degustation offer that grabbed global headlines this month, and KFC Australia’s pilot trial of drone delivery of meals.
Dining out again
KFC Buderim store manager Lauren Knijff welcomes customers and Colonel Sanders to the store. KFC is enjoying boom time conditions as chicken is viewed as a healthy and cheap alternative, even when fried.
Meanwhile, as the fast food wars heat up, fuelled by the reopening of restaurants from Covid-19 lockdowns and people once again feeling comfortable to dine out, it could be the pizza and fried chicken categories that does the best out of higher petrol prices and other elevated living costs as people turn to cheaper fast food.
Research from fast food industry analysts has revealed that pizza is a cheap way to consume calories, especially when compared to other fast food categories, restaurants and supermarket ready-made meals.
Analysis of meals across fast food, supermarket ready meals and restaurants by investment company Barrenjoey shows that a standard meal from the biggest pizza chain in Australia, Domino’s, costs just 0.6 cents per calorie – far cheaper than the 1-2c per calorie for other fast food options.
Takeaway restaurant meals are even more expensive at about 2c-5c per calorie.
“As prices move higher we think that consumers may trade down to cheaper options like pizza,” Barrenjoey consumer and retail analyst Tom Kierath said.
“Domino’s key inputs are cheese, meat, dough (wheat) and paper, all of which have seen considerable inflation in recent months. But we think Domino’s is well placed because they are a very cost-effective meal solution versus peers.”
Domino’s CEO Don Meij with pizzas at Domino’s store. Analysts found pizza offered the cheapest price per calorie compared to other fast foods. Pic Annette Dew
Fast food chains will now face the heat of rising living expenses for households, which could prove a drag on their sales as consumers look to save money by eating out less. Domino’s, with annual sales in Australia and New Zealand of about $1.3bn, is confronting this challenge by launching a new campaign that it believes balances the value equation by giving what it calls “More for More”. This translates to added menu options – bundles, sizing offerings and extra toppings or better quality pizza crusts – that it believes are both a win for customers looking for value and a win for its stores.
Across the road at KFC, the leading fried chicken fast food chain, it is staying close to consumer trends, from health and tastes to the rising cost of living, and believes one of its key strengths is the sense it is a treat, and being playful with its menu.
That “playfulness” was on display when KFC launched a bespoke 11-course degustation menu incorporating KFC ingredients, over three nights at a secret -location in Sydney that has attracted thousands of bookings. It has drawn global attention and a waitlist in the thousands.
“I think staying close to consumer trends for us is really, really important,” Drew O’Malley, CEO of Collins Foods, which owns more than 250 KFCs in Australia, told The Australian.
King of treats
KFC Australia franchisee Collins Foods’s chief executive, Drew O’Malley, who believes KFC has a ‘playful’ image that attract consumers and that also is also seen as a treat. Picture: Supplied.
“It’s always the balance between what does the brand stand for and at KFC we consider to be the king of treats and recognising that consumer tastes evolve.
“We need to keep products on the menu that respond to consumer tastes. So more recently for KFC we launched what we call the modern menu where we’ve made adjustments to some of our core products like Zinger and Twister with new ingredients, and we are constantly making some tweaks to our ingredients to ensure that we can make improvements to health and wellness without compromising on taste.
“For us taste is obviously always going to be the category driver and we want to respond to consumer tastes while not compromising on that aspect.”
Research from industry analysis firm IBISWorld has revealed that chicken-based fast food products have grown considerably to be 17.8 per cent of industry revenue in 2021-22. “Chicken is often perceived as healthier, which many fast food operators have adopted to offering,” IBISWorld analyst Disha Jeswanth said.
“Additionally, sandwiches, salads and juices have also grown to 12.7 per cent of revenue in 2021-22, backed by rising health consciousness among consumers.”
Ms Jeswanth said fast food chain menus had evolved to include healthier options, such as salads, yoghurts wraps and low-sugar drinks, due to increasing health consciousness.
Then there is the gathering pace of veganism that fast food chains must face up to.
“Plant-based items are also expected to increase in line with the rising uptake of veganism. Growing popularity of premium products has encouraged operators to introduce new ranges,” Ms Jeswanth said.
“For example, major player McDonald’s has introduced premium ranges of burgers that provide customers with a better variety of options. Several industry operators have also introduced breakfast menus that include healthier ingredients such as eggs.”
As the takeaway arms race picks up pace, fast food chains are enthusiastically reaching for technology to help boost their competitive advantage and for many, such as KFC and McDonald’s, this means more mobile phone apps and joint ventures with home delivery services such as Uber Eats to get meals to people at home.
Ms Jeswanth said industry operators had become increasingly dependent on home delivery apps and drive-through services as a result of a surge in demand during the pandemic. “Despite the easing of associated restrictions, the use of pick-up and delivery services is likely to continue growing,” she said. “Fast-food operators are less reliant on dine-in facilities compared with restaurants, primarily due to established drive-through services, which supported growth in revenue during the pandemic.
Fast food industry projected revenue growth
“Consumers have become accustomed to the takeaway nature of fast food, representing a transition away from dine-in services.”
Mr O’Malley said for KFC, which would be soon launching a new mobile app, it was all about catering to the customer wherever they wanted to eat, in a drive-through, at the restaurant or at home.
“Digital and e-commerce for us is more important than ever,” he said. “As much as we say taste and value matter, convenience is a pretty important ingredient as well.
“We have been constantly upgrading our app and we’ll have a new version coming out in the next few months and we think that it’s really relevant to the way customers want to interact with the brand that, however customers want to access us, we want to make sure that they can do that.
“And that may be delivery, may be click and collect, it may be in the store. We want to be where our customers are.”
However, Ms Jeswanth said there was a possible downside to some of the new technologies and digital assets fast food chains were hitching a ride with to get closer to the customer, with many home delivery services charging high commissions that could erode profitability.
“Home delivery apps such as Uber Eats and Deliveroo often charge commissions as high as 35 per cent of the order value, considerably limiting industry profitability, which IBISWorld esti-mates to account for 6.2 per cent of industry revenue in 2021-22,” she said. “Nevertheless, industry players are expected to continue providing services through these apps to remain competitive.”
She said industry players had also increasingly invested in the development of their own apps, where customers could make in-app purchases and find available promotions: “For example, McDonald’s has introduced the MyMacca’s Rewards, wherein customers can earn points by making purchases and exchange the points for menu items.”
www.heraldsun.com.au/business/fastfood-chains-reinventing…
* Fast food places have lost what made them great "Fast Food", you can get served faster at a restaurant than you can at a McDonalds these days. As a former McDonalds manager, im disgusted how low the work ethic of their workers has fallen. It takes them longer now to prepare a burger using pre-cooked meat from a warmer than previously when it was actually made fresh. You ask to eat in store and they give you the food in a bag. Previously you were encouraged to eat in store as this created additional spend and also brand loyalty. Now they just want you out the door.
* Of course, wanting you out of the door has nothing to do with Covid.
Fast food, service stations defy lockdowns with suburban rollouts. Nick Lenaghan Mar 22, 2022
Hundreds of new retail and service outlets from major brands – from fast food, to fitness, fuel and cafés – have opened across the nation over the past year, exceeding the number of closures and showing a preference toward suburban locations, according to research house GapMaps.
The results point to a business expansion which has defied the lengthy lockdowns imposed across the country last year, especially in the two largest cities of Sydney and Mel…
www.afr.com/property/commercial/fast-food-service-station…
KFC Wollert: New KFC store opens on Symphony Lane. Kimberley Seedy June 3, 2022 Whittlesea Leader
Fried chicken lovers in Melbourne’s north are in luck, with popular fast food chain KFC opening a new restaurant.
KFC has opened a new store in Wollert, employing 45 local residents.
Fried chicken fans in Melbourne’s north are in luck, with KFC opening a new store in Wollert.
The new restaurant, at 13 Symphony Lane, officially opened on Thursday and has created 42 new jobs for the local area.
Wollert is part of Melbourne’s growing northern suburbs, and is located in the City of Whittlesea.
Eight staff members have joined the new store from nearby KFC restaurants, with the store to be led by Stewart Henske, who has more than eight years experience at KFC, including three years as assistant restaurant manager at the nearby KFC Wallan stores.
Amy Tawil and Caitlan Huynh will be assistant restaurant managers.
Mr Henske said the new restaurant was in a prime location for locals and those passing through town.
The new Wollert restaurant will be open Sunday to Thursday from 10.30am – 10pm and Friday – Saturday from 10.30am – 11pm.
More Coverage
KFC helps triple profits for Restaurant Brands
Vintage photos of Melbourne’s fast food chains
McDonald’s has reopened its Innisfail, Atherton, Cairns Central, Cairns Esplanade and Redlynch stores. Andreas Nicola March 14, 2022 Cairns Post
A popular fast food restaurant that has been shut for the past week across the Far North has provided an update after the wild weather in areas down south affected supply.
video: Why fizzy drinks taste better at Macca’s A former McDonald’s employee has claimed there’s a scientific reason why soft drinks taste better at the fast-food outlet.
McDonald’s restaurants across the Far North have reopened after the floods down south forced them shut.
Restaurants that were affected included Atherton, Cairns Central, Cairns Esplanade, Redlynch and Innisfail. However, a McDonald’s spokesperson confirmed all the restaurants reopened over the weekend and Monday morning.
“The majority of McDonald’s restaurants in flood-impacted communities of QLD and Northern NSW have reopened over the weekend,” the spokesperson said.
McDonald’s staff members Chelsea Pearmine and Madeline Bamblett hand out orders of coffee and a toastie and a Big Mac and coke to customers at the Gordonvale restaurant. Picture: Brendan Radke
“We thank our customers for their patience, and we look forward to welcoming them back to our restaurants.”
The spokesperson said the core favourites will be available at all the restaurants including burgers, nuggets and fries. But there might be some stuff missing from the menu.
“The Distribution Centre has starting operating again and we’re anticipating a return to the full menu in the coming days,” the spokesperson said.
EARLIER, Wednesday, March 9: THE floods down south have affected more businesses across the Far North but this time it’s one of the most popular fast food restaurants in the world.
Many McDonald’s restaurants across the region have had to close for an unknown amount of time over the next few days.
Restaurants affected include stores at Innisfail, Atherton, Cairns Central, Cairns Esplanade and Redlynch.
A McDonald’s spokesperson said it was due to the wild weather.
The floods in southeast Queensland and NSW have impacted other supply chains, with supermarkets including Woolworths and Coles having empty shelves.
McDonald’s Redlynch has shut its doors for an unknown amount of time because of the floods down south.
“Just like many businesses across Queensland and New South Wales, McDonald’s has been impacted by the extreme weather experienced on the east coast over the last week,” they said.
The stores across the Far North have been affected because of their distribution centres.
“Unfortunately, this included our Brisbane distribution centre,” they said.
“We immediately implemented a number of contingencies, however the continued poor weather has meant that some of our restaurants have been temporarily closed or are experiencing product shortages.
“We are working with our suppliers and logistics partners to safely supply restaurants via alternate roads, until all roads reopen and the clean-up begins.”
The spokesperson said they hope to open their stores in the next few days and will update customers when they do.
McDonald’s Cairns Central has shut its doors for an unknown amount of time because of the floods in southeast Queensland.
“The majority of our restaurants across Queensland remain open and serving our communities,” they said.
“We are working closely with our local licensees and suppliers to re-open impacted restaurants in the coming days.
“The safety and wellbeing of customers, crew and our communities remains our top priority.
“We appreciate customers’ patience and understanding.”
While some stores have been affected the Gordonvale, Edmonton, Woree, Martyn Street, Manoora and Smithfield stores all remain open.
More Coverage
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www.cairnspost.com.au/business/cairns-business/mcdonalds-…
* ATHERTON is not closed, just very limited menu
* Interesting to note that a flood in the south has resulted in increased nutrition in the north.
* The federal government need to increase funding for our national highways they are the problem not the states. This divided coalition government needs to be replaced asap.
* As if a Labor government beholden to the Greens is going to focus on road transport
* Wild weather events are a staple of life in Eastern Australia, you would think that reliance on just one road would be foolish from any government.
* This is great news. It means that children for a few days will have to eat healthy food from home…hmmm, will this happen? I guess not!
* not all of us have kids, for me it is a disaster.
* Even though this McDonalds it is effectively cutting Cairns off from groceries. Why has this state government done nothing to ensure logistics are in place. Every time it rains and the Bruce Highway is cut off somewhere the shelves empty. Not good enough, forget spending money on the Olympics and secure food supplies for the north of the state.
* Tell us again how this State can afford to host the 2032 Olympics and spend however many billion dollars that will cost in building very localised infrastructure when we have a weather event like this that can wipe out the States transport systems. Call it a one in whatever years event but the fact remains that the State is basically on food rationing because its transport system went under water and the State is looking at a $2 Billion plus recovery bill before looking into what can be done so it wont happen again.
McDonald’s is facing a $900m lawsuit in USA over its icecream machines. Mitchell Van Homrigh March 7, 2022
For everyone who has heard, “sorry the ice cream machine isn’t working”. This USA lawsuit is for you.
video: Why fizzy drinks taste better at Macca’s A former McDonald’s employee has claimed there’s a scientific reason why soft drinks taste better at the fast-food outlet.
A USA tech company is taking up the fight for anyone who has gone to Macca’s in hope of icecream but has been told “the machine isn’t working” in a USD900 million lawsuit.
The creators of a gadget that helped fix McDonald’s chronically broken-down ice cream machines in America are suing the fast-food giant for dereliction of duty, claiming the chain is known for the fault.
However, McDonald’s has labelled the lawsuit “meritless”.
McDonald’s doesn’t seem worried about the lawsuit taking aim at its ice cream machines.
Jeremy O’Sullivan and his partner Melissa Nelson created mobile-phone sized device, called Kytch, that can be planted inside the machines that make McFlurry’s, milkshakes and ice cream cones.
It works by intercepting the machine’s internal communications and sending information to a smartphone or web interface where owners can troubleshoot the problem when the machine breaks down.
Court documents filed in the District Court in Delaware showed that the device had become popular among franchisees in USA.
In the opening address of the lawsuit, the complainant, Kytch, included a tweet by the fast-food giant, which showed it was aware of its ice cream machine’s reputation.
“McDonald’s is best known for its world-famous burgers, fries, and broken ice cream machines,” it said before including an image of the following tweet.
Issues arose when McDonald’s intervened telling franchise owners that the device violated warranties of the ice cream machine while also posing a risk of “serious human injury”.
The machines are made by a company called Taylor and can be bought for about USD18,000. Taylor Company’s website says its products include soft-serve ice cream, frozen yoghurt, milkshakes, smoothies and slushies,
The lawsuit has generated plenty of conversation in USA, with McDonald‘s telling Newsweek the claims are “meritless”.
In November 2020, McDonald’s told its franchisees not to use Kytch devices — halting the start-up’s fast-growing sales.
Kytch sued Taylor last year after Taylor allegedly obtained one of Kytch’s devices and reverse-engineered it to create its own internet-connected monitoring product.
“This is a case about corporate espionage and the extreme steps one manufacturer has taken to conceal and protect a multimillion-dollar repair racket,” attorneys for Kytch wrote in the complaint in California Superior Court in Alameda County.
More Coverage
No burgers today: Macca’s explains restaurant closures
Macca’s rant goes viral: No eggs, hash browns or sauce
www.heraldsun.com.au/technology/gadgets/mcdonalds-is-faci…
* I am joining the lawsuit.
* McDonalds needs Mr Whippy to keep their soft serve ice-cream machines working.
McDonald’s unveils fan-inspired ‘menu hacks’. Ariel Zilber January 31,2022
There are some truly interesting burgers coming to McDonald’s in USA.
Not sure what to get at McDonald’s? Just combine a Big Mac, a McChicken and a Filet-o-Fish into a single, giant burger.
The fast-food giant is rolling out “menu hacks” where customers can choose from four different combinations of their favourites — and which some weaker stomachs might find intimidating.
The initiative is currently only happening in the USA … but frankly it’s almost intriguing enough to get us on a plane so we can check it out in person.
Breakfast fans who love their Sausage McMuffin with egg and a hash brown can stack one on top of the other and enjoy a Hash Brown McMuffin, for example.
The Hash Brown McMuffin seriously has merit.
A double cheeseburger doesn’t have to be eaten with the McNuggets on the side. Instead, the nuggets and barbecue sauce can be stuffed under the bun to create a “Crunchy Double.”
There’s also the “Surf and Turf” — a concoction that allows diners to combine a Filet-o-Fish and a double cheeseburger. The “Surf and Turf” is offered exclusively through the McDonald’s app in the US.
Take a walk on the wild side and take one of these bad boys for a spin. The Crunchy Double combines a double cheeseburger with six pieces of Chicken McNuggets and barbecue sauce.
Those with monster appetites can go big with the “Land, Air, and Sea” — a monster mash-up that puts together a Big Mac, a McChicken sandwich, and a Filet-o-Fish.
McDonald’s said it invited fans to create their own menu hacks and post their concoctions on social media. Sarah Sandlin, a social media influencer, came up with the Hash Brown McMuffin.
“I’ve been saying for years that the Hash Brown goes inside of the Sausage McMuffin with egg…that extra little crispy bite is the real breakfast cheat code,” she said.
The Land Air and Sea is truly mind-boggling.
“This campaign shows that it has never been ‘our menu’ — the menu belongs to our fans,” said Jennifer Healan, McDonald’s vice president of marketing.
A McDonald’s Australia spokesperson told Seven News the global food chain is keeping its ears open.
“While there are no immediate plans to introduce menu hacks in Australia, we are constantly listening to our customer’s feedback and considering great ideas for future.”
If Macca’s in Australia does decide to give this a whirl, we’ll be sure to let you know ASAP.
www.escape.com.au/destinations/north-america/usa/mcdonald…
I tried McDonald’s’ new mashed-up menu hacks. Here’s my verdict. Emily Heil Feb 9, 2022
Diners may have been doing it for years, but the new hacker-specific menu might be the most prominent example of a big brand embracing its customers’ stylings.
Last week in the US, McDonald’s debuted a handful of menu “hacks”. These are recipes incorporating standard items that fans typically dream up and share online. They include a burger stuffed with chicken nuggets and an unholy, Frankenstein-ian creation that entails layering fish and chicken patties inside a Big Mac.
The world’s biggest fast-food chain’s embrace of hackery – usually the domain of consumers, not corporations – feels significant. Sure, it’s a gimmick for the Golden Arches, and like any marketing play, it’s designed to boost the bottom line. The cost to assemble the aforementioned three-protein concoction, dubbed the “Land, Air & Sea,” is $US11 ($15.40).
www.afr.com/world/north-america/i-tried-mcdonald-s-new-ma…
‘Denying teenagers their breaks’: McDonald’s workers lodge legal action against fast food giant. Billie Eder January 30, 2022
More than 300 current and former McDonald’s workers, employed across 92 restaurants, are taking legal action against the fast food giant over rest breaks, in the biggest claim of its kind.
Shop, Distributive and Allied Employees Association (SDA) lodged a claim in the Federal Court on Sunday, launching a compensation battle that could affect thousands of workers who were denied paid rest breaks or misled about their working rights.
SDA has lodged their ninth legal action in the Federal Court against McDonalds.CREDIT:JASON SOUTH
SDA National Secretary Gerard Dwyer said the court action was “groundbreaking moment for some of the most vulnerable workers across the country.
“The fact that one of the largest employers of young Australians has been deliberately and systematically denying teenagers their breaks is astonishing,” he said.
In a statement, McDonald’s Australia denied any wrongdoing, and said the company is “very mindful of our obligations under applicable employment laws… and continue to work closely with our restaurants to ensure employees receive all correct workplace entitlements and pay.”
SDA National Secretary Gerard Dwyer.CREDIT:NICK MOIR
Commencing in South Australia, this will be the ninth Federal Court action the SDA has taken against McDonald’s, alleging that the fast food giant is complicit in the exploitation of its workers.
McDonald’s employees are covered by the Fast Food Industry Award which determines workers’ minimum wage, penalty rates, allowances and work breaks.
Under the Award, workers are entitled to a 10-minute paid rest break for four working hours and another 10-minute paid break for nine or more hours of work.
SDA alleges that along with concealing break entitlements from workers, some McDonald’s franchises told workers they could have a free soft drink in lieu of a paid rest break, and that they didn’t receive breaks because they were allowed to go to the bathroom and have a drink whenever they wanted.
SDA is also seeking for the court to penalise McDonald’s for breaching the Fair Work Act.
SDA South Australian Branch Secretary Josh Peak said that for too long McDonald’s had been “feeding crew members a cock-and-bull story” about their break entitlements.
“Fast food restaurants are busy, hot and the work is exhausting. It’s shameful to think young workers have been denied their rightful breaks and told they don’t exist,” Mr Peak said.
Under the nine claims currently before the courts, the SDA says that it is now seeking compensation for almost 900 current and former McDonald’s workers, covering over 110 sites nationwide.
McDonald’s Australia said that they intend to fully defend the claim made against them.
www.smh.com.au/national/cock-and-bull-story-mcdonald-s-wo…
McDonald’s fast-food delivery through Menulog accompanied by offensive messages. Andrew Chounding December 7 2021
ORDER UP: McDonald’s at Invermay had some unimpressed customers. Picture: Paul Scambler
A Launceston family have taken to social media to express their displeasure at an Invermay fast-food restaurant chain after receiving a delivery accompanied by cruel taunts.
The family, who wished to remain anonymous, posted photos on Facebook which showed packaging from a McDonald’s restaurant that include three offensive handwritten messages.
The message written in a thick black pen on various items of packaging read, "I hope you inJoy b***h", "me fatties love maccas" and "got enough?".
The family who placed the order through the food delivery app Menulog said they had been in contact with the fast-food chain who offered a small apology, and informed the family the responsible party had been identified and let-go.
A takeaway surprise leaves a bad taste for one Launceston family
The post to Facebook which noted the Invermay McDonald’s as the restaurant that prepared the order declined to comment when approached about the incident.
Twenty hours after being shared online, the post had received over 250 comments and been shared more than 80 times, with comments expressing disbelief at the thoughtlessness of the act.
A McDonald’s Australia spokeswoman said staff were required to comply with its values and the incident would be investigated.A takeaway surprise leaves a bad taste for one Launceston family
www.examiner.com.au/story/7540151/a-takeaway-surprise-lea…
