Domestic Trade Ministry waiting for written explanation from KFC over price hike

A general view of a KFC restaurant in Cheras December 27, 2018. — Picture by Hari Anggara
A general view of a KFC restaurant in Cheras December 27, 2018. — Picture by Hari Anggara

PUTRAJAYA, Jan 7 — QSR Brands (M) Holdings Bhd is still required to submit a written explanation to the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) on the price increase of Kentucky Fried Chicken (KFC) dishes even though it had given its reasons, said its Minister Datuk Seri Saifuddin Nasution Ismail.

“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 here today.

Saifuddin said in the meeting with the chairman of QSR Brands (M) Holdings Bhd Datuk Kamaruzzaman Abu Kassim last Friday, the ministry handed the company notice 21 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 of 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 today over the same issue.

Asked about the increase in the price of eggs at the Datuk Keramat market raised by former Prime Minister Datuk Seri Najib Tun 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 more on issues connected to consumers,” he said. — Bernama

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