Although consumers are trying to reduce their debt, they still want a treat.
Craigs Investment Partners broker Chris Timms said KFC was still a "reasonably cheap treat" and gave families the chance to eat out at a reduced cost.
Restaurant Brands, the operator in New Zealand of KFC, Pizza Hut and Starbucks, yesterday reported KFC delivered increased sales, with total revenue up $4.6 million for the 16 weeks ended September 13 to $72.8 million.
That was another second-quarter sales record for KFC, Restaurant Brands chief executive Russel Creedy said.
The rise in total sales on the previous year was 6.7% (5.9% on a same-store basis) following on from a 9.2% same-store sales rise in the second quarter last year.
"The ongoing transformation programme, consistency in store operations, wider menu options and a more focused approach to marketing all assisted in maintaining this sales momentum," he said.
Total sales were affected for the quarter with six large stores being closed between two and 11 weeks for transformation. Invercargill and Colombo St reopened in June and Papakura reopened earlier this month. KFC Levin reopened in July 2010.
Year-to-date sales for KFC were $127.1 million, nearly $9 million more than the previous year. That represented an rise of 7.5% in total sales and 7.9% on a same-store basis, Mr Creedy said.
Pizza Hut remained troublesome for Restaurant Brands, but Mr Timms said the company was trying to stop the falling sales and profit by closing down the dine-in restaurants. That would change the mix of the business by lowering overheads.
Total sales for Pizza Hut were down 3.8% on the previous year to $19.1 million. Year-to-date total Pizza Hut sales were $33.8 million, down 4.6% on the previous year with four fewer stores.
During the quarter, the Whangarei, Hamilton East and Papanui restaurants were closed as part of the restaurant closure programme. That resulted in store numbers reducing by three to 88, down four on last year.
Starbucks Coffee returned to same-store sales growth during the quarter after recording negative same-store sales for the previous five quarters.
Same-store sales were up 2.4% for the quarter and 0.5% year-to-date. Total quarterly sales were $8.6 million, down 3.1% on the previous year, with three fewer stores.
Mr Creedy gave the market an update on how the company's operations were affected by the Canterbury earthquake.
The earthquake resulted in some initial disruption to the business. Of the seven KFC stores in Christchurch, only the Christchurch CBD store was closed for any length of time after the quake.
Nine Pizza Hut stores were closed for one day immediately after the quake with the planned closure of the Papanui dine-in restaurant being brought forward two weeks.
The four Starbucks stores in Christchurch were closed on the day of the earthquake, but all four reopened within a week.
Since the resumption of trade at the Christchurch stores, sales continued to be adversely affected but were beginning to build back as central Christchurch recovered from the earthquake, Mr Creedy said.
