KFC UK & Ireland, the fast food chain, has reported an increase in pre-tax profit for the year to 4 December 2011, against what it described as a tough macro economic climate. The c800-strong group saw pre-tax profit climb to £47.2m in 2011 (2010: £38.3m), with turnover up 6.2% from £371.2m to £394.2m. Turnover was broken down into company stores sales at £360.7m in 2011 (2010: £340.7m) and franchise royalties and fees at £33.5m (2010: £30.4m). The company said that the global increase in food commodity prices had resulted in an increase in cost of sales of 52.3% (2010: 51.6%). Offsetting this the company reduced administrative expenses during the year by £1.1m to £143.2m and as a result operating profit climbed from £41.2m to £50.1m. The fast food chain, which is led by Martin Shuker, said: “Trading conditions remain challenging however we continue to invest in new stores as well as our existing estate. We have launched a new design concept for our restaurants during 2012, which the changes the look and feel of our assets and we continue to develop new products to offer excitement and choice to the customer. “People continue to be one of the businesses greatest assets and we continue to look for opportunities to improve employee satisfaction, this has been rewarded in early 2012 by being awarded first place in Britain’s Top Employer Award.” KFC is currently three years into a five-year plan to open up to 300 extra stores.