Mike Egan: Restaurant Association President explains rise in Kiwis turning to fast food

New Zealand's KFC, Taco Bell and Pizza Hut stores have helped drive millions in profits for global owner Restaurant Brands. 

The multi-national company has reported a 5.4 percent sales growth in the year ending December - reaching $1.39 billion.

The Kiwi division's recorded the highest net profit - at $41.7 million - and the Australia and California markets had losses. 

Restaurant Association President Mike Egan says convenience is a big factor behind people buying fast food. 

"People are super busy, stuck in traffic - part of the stress of every day is what's for dinner."

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Episode Transcript

Speaker 1 (00:00):
So restaurant brands in New Zealand. It's the parent company
of Pizza Hut, Taco Bell, KFC, Carl's Junior, all the favorites.
They've reported their results for twenty twenty four net profit
after tax twenty six point five million. Then that is
up sixty two point six percent on the year prior.
Joining us now is Mike Egan. Mike Egan is the
Restaurant Association President. Good evening, Good evening, Good to have

(00:24):
you on the show. Mike, tell me what's going on here.

Speaker 2 (00:28):
Well, overall takeaway sales were up six center in twenty
twenty four on the previous year, So the whole sector
sort of has been increasing. Some of that will be inflationally,
of course, but congratulations the restaurant brands. It's a good
story because they employ a lot of people and a
lot of New Zealanders who like their requisitine and.

Speaker 1 (00:51):
You know you mentioned more generally fast food. Is it
be cost a living thing that you know we gravitate
towards it because it's cheaper?

Speaker 2 (00:59):
Yeah, I think so. And convenience is a big factor.
I mean, people that are super busy, stuck in traffic.
Part of the stress of every day. I guess is
what's for dinner? Mom? What's your dinner? Dad? And you know, hey,
we've got some delicious, delicious carco Bell. So the kids
go yeah, and so mum and dad are a winner.
So there's a whole lot of factors that that people

(01:21):
have those decisions. I guess to choose takeaways.

Speaker 1 (01:23):
How's the ingredients cost the situation looking for these retailers,
for these restaurants, a price has gone up dramatically. Is
that effect? It's clearly not affecting the bottom line for
restaurant brands.

Speaker 2 (01:37):
No, I think. I think the cost of a materials
are really stabilized in the last six months. Yeah, it's
a bit like the market had those huge increases eighteen
months ago, a year ago, and now sort of inflation
sort of under control, and so they can now really
focus on other parts of their business and sharpening, sharpening

(01:58):
the pencil on you know your talking earlier about energy
costs and things like that, so that they're probably more
of a worry and insurance and rates and all the
rest of the food cost is actually quite good at
the moment.

Speaker 1 (02:09):
Mike, Thanks for that interesting stuff. Mike Egan, who's the
Restaurant Association President. For more from Heather Duplessy Allen Drive,
Listen live to news talks.

Speaker 2 (02:17):
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