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Mike Egan: Restaurant Association President explains rise in Kiwis turning to fast food · Best of Business

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  Speaker 2: So restaurant Brands in New Zealand. It's the parent company
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  Speaker 2: of Pizza Hut, Taco, Bell, KFC, Carl's Junior, all the favorites.
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  Speaker 2: They've reported their results for twenty twenty four net profit
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  Speaker 2: after tax twenty six point five million. Then that is
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  Speaker 2: up sixty two point six percent on the year. Prior
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  Speaker 2: joining us now is Mike Egan. Mike Egan is the
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  Speaker 2: Restaurant Association President. Good evening, Good evening. Good to have
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  Speaker 2: you on the show. Mike, tell me what's going on here.
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  Speaker 3: Well, overall takeaway sales were up six center in twenty
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  Speaker 3: twenty four on the previous year, So the whole sector
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  Speaker 3: sort of has been increasing. Some of that will be inflationally,
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  Speaker 3: of course, but congratulations the restaurant brands. It's a good
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  Speaker 3: story because they employ a lot of people and a
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  Speaker 3: lot of New Zealanders who like their aquisine.
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  Speaker 2: You mentioned more generally fast food. Is it the cost
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  Speaker 2: of living thing that you know we gravitate towards it
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  Speaker 2: because it's cheaper.
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  Speaker 3: Yeah, I think so. In convenience is a big factor.
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  Speaker 3: I mean, people that are super busy, stuck in traffic.
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  Speaker 3: Part of the stress of every day, I guess is
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  Speaker 3: what's for dinner? Mom? What's for dinner Dad? And you know, hey,
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  Speaker 3: we've got some delicious, delicious taco bell so the kids
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  Speaker 3: go yeah, and so mum and dad are all winner.
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  Speaker 3: So there's a whole lot of factors that make people
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  Speaker 3: have those decisions I guess to choose takeaways.
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  Speaker 2: How's the ingredients cost the situation looking for these retailers,
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  Speaker 2: for these restaurants, If price has gone up dramatically, is
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  Speaker 2: that effect It's clearly not affecting the bottom line for
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  Speaker 2: restaurant brands.
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  Speaker 3: No, I think. I think the cost of aw materials
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  Speaker 3: are really stabilized in the last six months. Yeah, it's
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  Speaker 3: a bit like the market had those huge increases eighteen
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  Speaker 3: months ago, a year ago, and now sort of inflation
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  Speaker 3: sort of under control, and so they can now really
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  Speaker 3: focus on other parts of their business and sharpening the
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  Speaker 3: pencil on you know, you were talking earlier about energy
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  Speaker 3: costs and things like that, so that they're probably more
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  Speaker 3: of a worry and insurance and rates and all the
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  Speaker 3: rest of the food costs is actually quite quite good
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  Speaker 3: at the moment. Mike.
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  Speaker 2: Thanks for that interesting stuff. Mike Egan, who's the Restaurant
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  Speaker 2: Association President.
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