@juneauquan Poor QSR results have been a worldwide phenomenon. i can only think of CMG doing well. besides the usual fried chicken v burgers v pizza comparative value leapfrogging, the main issue is that costs, mainly commodity but also wages (low-wage workers getting inflation-related raises) are crunching margins. it only takes the marginal consumer to change to make a difference on the sales side, that is a couple of % change their habits, eg eat at home, or move to another QSR format. these trends have been in place for about two years now, IMO they are the tail end of the inflation issues we have seen and ultimately will pass.

This idea has been thrown around for years and makes some sense on the surface.

But dig a little deeper and (like most things in this life) its a little more nuanced.

Bit of a shock here

Still find there are lots of people queueing up at KFC where I am in Chatswood

I would hazard the problem is shrinking basket size and less upselling. The margin at KFC comes from the fries and drinks not the chicken, at Dominoes it's all the frankenfood sides and at Chargrill Charlie's the salads etc. People still turn up for their chicken – the foundation of these fast food businesses is "craveability" after all – they just don't get the bells and whistles. Toss in a bit of cost inflation and CKF has a rough year or so.

I don't think the trade down from restaurants to fast food/QSR theory actually exists in the real world. Most people will just stay home.

@UlladullaDave I agree, the theory really doesn't seem to have played out.