Chicken is considered the most popular meat in Australia, on a soaring trajectory from 1992 to 2012 according to Australian Bureau of Agricultural Resource Economics and Sciences 2013 (ABARES). Most of us consume it weekly, and a third of us are eating chicken at least three times a week, reports the Australian Chicken Meat Federation. 

 

That’s 42.3 kilograms of chicken meat in a year. And we have an appetite for more chook on our plate, with ABARES predicting we will digest a further four to five kilos annually by 2017-18. 

 

There’s a cost advantage to chicken that appeals to consumers but on top of value for money, cultural and demographic influences come into play. According to Food magazine the popularity of chicken for dietary reasons is boosted with the continued migration of Asian cultures, which favour the meat. 

 

The king of the poultry run remains the second most popular fast food, after burgers, according to a report by IbisWorld. Chicken accounts for almost 20 percent (19.7 percent) of the fast food market. Burgers are leading the charge with 26.5 percent and pizzas pull up third, slicing a 16.6 percent share. 

 

However, chicken businesses have faced challenges as the landscape for takeaway meals changes. 

 

IBISWorld senior industry analyst Stephen Gargano says “Takeaway chicken shops have faced significant competition over the past five years due to the changing face of fast food. Fast food providers have shifted their offering away from traditional, un-healthy fried foods towards healthier, restaurant-style food. In order to maintain demand, operators have shifted their menus to provide a range of higher-quality, gourmet options.  

 

“As a result, chicken-based fast food has risen slightly as a share of industry revenue over the past five years. Operators have also sought to introduce a range of healthier options in order to maintain clientele that would otherwise move towards healthier fast food providers. Given the underlying healthy nature of chicken, many operators have introduced grilled chicken products in an effort to benefit from demand for healthy food.” 

 

KFC has just launched a gourmet offer appealing to the urban consumer as Nikki Lawson, chief marketing and development officer for KFC Australia, explains. 

 

“Our existing KFC menu is designed to appeal to every Australian. However, in some locations such as our Church Street store [Parramatta], where the customer base is predominantly working adult Australians, we wanted to trial a smaller menu more targeted to their needs.”  

 

The menu includes ingredients like jalapenos and quinoa to appeal to a more sophisticated palate, while keeping the core KFC flavours. 

 

“We cook our chicken fresh in-store and that requires large kitchens and large pieces of land for each of our stores. We’ve found that our stand-alone drive through stores are big and successful and with over 600 in Australia, we are well penetrated in suburban areas.  

 

“However where we are not well penetrated is in urban, city areas. This is simply because the size of the actual shopfronts are usually too small for us to build a whole kitchen in. So we’ve been looking for a model that can work in these kinds of urban locations.  

 

“So what we’ve done is actually slimmed down the menu, keeping our core favourites, while adding other premium ingredients to create a menu that is attractive to adults working in urban areas, while giving us the ability to actually cook in these smaller store fronts.” 

 

This is the first store of its kind for KFC Australia. The business will evaluate opening other stores and what those store models will be down the track.  

 

Red Rooster has adjusted its offer to suit the more health-conscious consumer, indicates Anna Jones, marketing manager. “Roast chicken has been at the core of our menu since our founding over 40 years ago. In order to meet the increased demand from the health conscious shopper, as well as selling whole roast chicken dinners, we’ve also expanded our range of rolls and wraps with our stripped down roast chicken.  

 

“This gives our consumers lunchtime options made from freshly roasted chicken that is non-processed and most importantly, not fried.” 

 

And it isn’t just about the cooking method.  

 

“It has always been important to us to provide food that consumers can trust and we are proud to have taken some industry leading steps forward by proactively removing all artificial colours, flavourings and added MSG from our kitchen made menu. It’s all part of our real food commitment to our customers,” she says. 

 

Former Bakers Delight general manager Chris Caldwell has launched in Melbourne the Love Pollo franchise. Aiming squarely for the discerning consumer looking for more than the standard roast chook sourced from a supermarket or neighbourhood chicken shop, Love Pollo serves up free range and gluten free options, with gluten free burgers and wraps soon to join the menu. 

 

“Free range is absolutely essential,” Caldwell says. “Ninety percent of our customers either know we are free range, or ask.” 

 

Chatting to customers in-store reveals many are keen chicken consumers but have not found a regular favourite store. 

 

“A lot of our regular customers when we talk to them say they have a repertoire of different places, they shop around. But when they go to the supermarket they don’t know how long the chicken has been there, or where it has come from. In individual outlets, they can’t be sure their meal is free range or gluten free.” 

Good news: the level of regulation within the industry is fairly low, with the Competition and Consumer Act 2010 the overarching bill governing the fast food sector. A trend for deregulation of opening hours is feeding the demand for 24 hour retailing. What any fast food franchisee needs is a food business licence, often issued by local councils. 

 

Where food retailers can be challenged is in adhering to the correct food safety standards (these are set out by Food Standards Australia and New Zealand). Issues to consider include food poisoning, staff hygiene, storing food, cross-contamination, displaying and serving food. 

 

Caldwell believes its essential that fast food outlets are following stringent policies, ensuring their whole team follows the standards. “This is chicken, there are no shortcuts,” he says. 

 

A franchisor can help you deal with the demands of managing these legal requirements through training and by providing regular updates on changes to law and occupational health and safety guidelines. 

 

“It’s a franchisor’s responsibility to provide training and re-training. We will continue to upskill to ensure our teams are best in class.” 

Gargano says the market for takeaway chicken in highly concentrated, with the largest four players accounting for more than 80 percent of industry revenue. Top brands are KFC,Red Rooster, Oporto, Chicken Treat and Nandos.  

 

He indicates the remaining operators in the industry are smaller in scale, with many operators owning a single store. “Despite the high level of concentration, there remain opportunities in the industry for new entrants. Established operators are largely associated with traditional, unhealthy fast food. New entrants providing premium, healthy options are able to enter the industry and capture market share from existing chicken shops and other fast food providers.  

 

“Premium providers are also able to be succ-essful with less healthy products, provided that the food is high in quality and captures the interest of consumers. Essentially, consumers are willing to forgive unhealthy food if the quality is high,” says Gargano.