Why is KFC closing down in Fiji?

from w
Radio Fiji reports that the KFC outlets are closing down in Fiji so I wonder why. Perhaps the clients can no long afford the high costs of purchasing a fast food meal - such as Kentucky Fried Chicken - for a family of eight or more! Our grandchildren really like fried chicken so one of the lads decided to make up his own recipe - with a bit of help from the internet - and he certainly had trouble making breadcrumbs. Then he decided to make a marinade with flour and soy sauce and - okay- the chicken turned out tasty. Chickens are not expensive where we live because we can buy wholesale from a nearby factory - though we don't ask questions about how the chickens were raised, in cages or roaming free. Better not to ask.

KFC outlets in Fiji face closure
Monday, August 01, 2011

Taken from / By: Google

Prominent fast food outlet KFC is on the verge of closing down operations in Fiji. Sources have confirmed to FBC News that the global fast food giant Fiji franchise is taking steps to close down its three outlets in the country. Two outlets in Suva and Nadi are already displaying signs that they are re-locating, however we have been informed KFC may soon cease to operate. A statement from the KFC head office in Hawaii is expected soon.

Report by : Edwin Nand
-----
and from Fiji Sun on Tuesday:
KFC CLOSES FIJI OUTLETS

writer : RACHNA LAL

8/2/2011
All Kentucky Fried Chicken (KFC) lovers will be in for a surprise as all their outlets in Fiji may remain closed until further notice.

This was after Kazi Foods Corporation Fiji announced the suspension of all their business operations in Fiji with immediate effect.

KFC general manager Steve Johnson, in a letter dated July 29 to all KFC-Fiji suppliers, informed them of this closure. While he attributed the decision to suspend the Fiji operations to rising costs and deteriorating sales, Mr Johnson said the ban placed by Biosecurity Authority of Fiji (BAF) some months ago on importation of key ingredients also impacted their business. “The decision by BAF to ban importation of a key ingredient used in the making of the Colonel’s Original Recipe Chicken, delivered a fatal blow to our business,” he said. “The milk and egg is used widely in 170 countries worldwide without any conditions and health risks to consumers and we have been regularly importing it since KFC opened its doors for business almost 10 years ago,” Mr Johnson said.

He revealed that BAF imposed 15 prerequisites some months back before any new import approval could be granted. “The company fulfilled 14. The manufacturer and our Singapore supplier is at a loss to understand the motive and real purpose of import restriction.” Mr Johnson said the company would dispose their assets in the event KFC failed to resume operations. “We will revert to all our suppliers, small and large, as to how we propose to pay off the debt that may be owed.”

KFC opened its first restaurant in April 2002 in Suva slowly expanding to KFC Centre Point at Laucala Beach outside Suva and KFC Namaka in Nadi.

KFC also opened its first Pizza Hut Restaurant to compliment KFC in July 2007 at Centre Point location followed by Suva and Namaka locations.

According to the KFC-Fiji website, every day more than 12 million customers are served at KFC restaurant in 109 countries and territories around the world.
KFC operates more than 5200 restaurants in the United States and more than 15,000 units around the world.

Pizza Hut, on the other hand, serves nearly two million pizzas a day in its 12,000 plus locations. It has an estimated four million customers worldwide. Questions sent to BAF remained unanswered when this story when for press. Meanwhile, a statement from KFC’s head office in Hawaii is expected to be released tomorrow.
--
and from Fiji FBC:
Fiji Bio-security accuses KFC of false claims
Tuesday, August 02, 2011

The Biosecurity Authority of Fiji (BAF) has clairified that they are not responsible for the closure of KFC outlets in Fiji and says the global fast food chain has employed mischievious public relations tactics to divert blame.

The Authority says they have not put any ban on the importation of KFC's key ingredients as claimed by the company.

Chief executive Elvis Silvestrini says KFC's consignment of milk and egg mix is temporarily held up because Veterinary Certification is required from KFC assuring that the products are free of diseases - and safe to bring into Fiji.

Silverstrini says this is consistent with international obligations and the conditions for all imports into the country.

He says they have held-up 2 cartons of KFC’s ingredients because they did not provide a Veterinary Certificate with its last consignment.

Silverstrini adds KFC's move to blame BAF is a tactic to divert attention from the fact that KFC's closure is due to rising costs and deteriorating sales - as they themselves have admitted.

Silvestrini says KFC had been given a number of options by the Authority to clear their consignment, and were informed at every stage of the process abou the import requirements.
Report by : Ritika Pratap