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AFC Enterprises CEO Cheryl Bachelder weighs in on the current state of business in light of rising food prices.
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Stretching your wallet to make ends -- let's get a view of the country and our economy from the corner office the CEO of AFC.
Top five.
-- batch elder joins us an exclusive interview show great to see you and main business has been solid for you guys you're growing net and com.
Last year your same store sales it just in the US were up 3% and I can go into more these numbers but how does the economy and your.
Customer look.
You know we just finished a really strong year fourth quarter was up nearly 6% sales in the years -- set up 3%.
The way we've stayed close to our customers given that really innovative products like.
Wicked chicken dip in chicken -- chicken.
Things that they can't get anywhere else -- value prices of about 399.
For that -- -- a lot of pet flavorful but let's just dated for a very good price.
That -- you more able even with rising food costs in the most recent quarter you're mart -- managed to improve your margins and you have been able have you not.
Able to pass along some of these big price increases to the customers -- carefully rising prices.
Look to be -- the thing that I'm proudest about is that we've been able to avoid major price increases by being really fanatical about the bottom line profit in our restaurants.
We had 250 basis points of commodity increases last year we clawed back over a 150 of that with cost savings and controls.
In our restaurants saving our franchisees over nine million dollars last year.
Six year point.
Our franchisees just had the third year -- increasing absolute profits and their restaurants.
-- can you continue what the first question is do you anticipate that -- cost will continue to go up for you.
And can you continue to squeeze.
Expenses out of the business as you have that.
Well for the year ahead we're expecting food prices to continue to be up a bit in the first half and we hope -- to come down in the second half for roughly a stable year.
We will remain intensely focused and how we promote our our products and how we control costs.
Because the bottom line margin of our restaurants is critical to our success is traffic.
-- see more people coming to Baghdad in the statement that you -- you sit here I've been aggressively pursued growth in this country is traffic better.
Absolutely.
The only sign of a healthy restaurant company as when more gaps are coming in the restaurant.
And we are so excited that that's true for pop hearts our guest counts drop.
Our market share -- thought.
Because we've gotten in this sweet -- -- offering them the flavorful food that they want at the value prices that they can afford Cheryl how do you beat back then the people in this country say your restaurant and really.
-- restaurant of your kind is part of the obesity problem.
You know we believe that we offer our -- lots of interest in flavorful foods like red beans and rice for example we have a great Green being with Turkey bacon we have eight.
Louisiana low menu that -- -- naked tender with great.
Calorie and fat.
Counts on -- and so we believe were part of a healthy diet and that the customer.
I gets to enjoy some really flavorful delicious statement that -- -- pot -- -- -- say the commercials -- me and and now -- he's made all that much worse by bringing all this -- they've been here so this -- -- -- Cheryl thank you for being on it was great to talk to you again please come back there -- and sure about -- -- CEO pop question thank you.
