KFC Australia Raises Chicken Tender Prices 15% After 18-Month Overhaul

KFC Australia has relaunched its signature chicken tenders after an 18-month overhaul by its test kitchen, making them 30 percent bigger and crispier to counter rising complaints and competition. The three-pack bundle now costs $10.95, up from $9.45, while the five-pack jumped to $14.95 from $12.95. Vanessa Rowed, chief marketing officer at Yum! Brands, said the company aims to set a new benchmark and apply the same improvements across its entire menu.

Why KFC overhauled its tenders

Customer complaints about size and dryness drove the redesign. Over 18 months, KFC’s test kitchen changed the tender shape, cooking process, and equipment. Kathryn Lake, KFC’s senior innovation development manager, told the Australian Financial Review that customers wanted bigger, more plump tenders after a high number of complaints. Rivals including El Jannah, Guzman y Gomez, and Wingstop have captured market share with their own fried and boneless chicken offerings.

The price increase and menu strategy

A three-pack bundle rose 15.9 percent to $10.95, while a five-pack climbed 15.4 percent to $14.95. Rowed said size was the key driver: “It was always about size. We’re going to set the benchmark here and then we’re going to do that with every single product in our portfolio.” The company is also considering a revamp of its Original Recipe, developed by Colonel Harland Sanders in 1940, though no timeline has been set.

Chicken dominates Australian fast food

Chicken has become the primary protein across major chains. Hungry Jack’s launched Jack’s Fried Chicken in 2021, and McDonald’s introduced the McCrispy in 2023. ANZ analyst Michael Whitehead attributed the chicken boom to post-COVID affordability concerns and the perception that fried chicken is healthier than other fast-food options. IBISWorld analyst Sebastian Quinn noted chicken moved from a secondary burger option to a core menu offering since the early 2020s.

What this means for YUM investors

Yum! Brands (YUM) trades at $136.34 with a Meyka grade of B+ and a 12-month forecast of $162.64, suggesting 19 percent upside. Six analysts rate the stock a buy against three holds. The tender relaunch signals management’s commitment to defending market share in a crowded segment, though the price increase may test demand elasticity in a cost-conscious market.

Final Thoughts

KFC’s bigger, pricier tenders reflect a strategic shift to compete in Australia’s crowded chicken market. With Meyka grading YUM a B+ and forecasting $162.64 within 12 months, the menu overhaul could strengthen margins if customers accept the price hike.

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