And for poultry, we also have favorable commodity prices there. We do lock up our supply contract a quarter or so ahead of time. So we know that in the second quarter, we probably would also have variable commodity prices as well. However, because the chicken life cycle or raising the chicken life cycle is about like almost a quarter. And so we cannot provide a longer term outlook for you. Now in terms of the gain that we got from those commodity — payable commodity prices and whatnot, as we have mentioned before, that we do intend to pass savings back to your consumer so that they can get the good value that they have. Now for Pizza Hut, a little bit higher for the quarter because they did run all you can — by Day — All You Can Eat Campaign, which is great consumer demand.
but the cost of sales is a bit higher over there. And we’ll continue to calibrate obviously, the supply chain and make it more efficient over time so that we can both drive sales and drive growth and protect profit as well. Thanks, Anne.
Anne Ling: Thank you.
Joey Wat: And one last comment. So the reduction of the delivery fee has rather minimal impact on the margin because we have the 14 plus sales growth in delivery in KFC to offset that. So it’s okay. And of course, before we launch it, we test it and we know it’s going to be okay. Thank you.
Anne Ling: Okay. Got it. Thank you.
Operator: Thank you. The next question comes from Ethan Wang from CLSA. Please go ahead.
Ethan Wang: Thank you. good morning. Hi, Joey. Hi, Andy. So my question is on the delivery services. So post-COVID, there was some concern that the delivery sales contribution might go down, but actually in the first quarter, it held up pretty well. So has management seen a trend that delivery sales is more resilient and [indiscernible] than off-line timing. And in that case, is that going to affect our planning on salary expense going forward? And [indiscernible] one because we mentioned that in some cities, we are now cooperating with platforms. So how should we think about this? Is that a deliberate kind of planning in terms of cost controlling? How is that going to happen? Thank you.
Andy Yeung: Thank you, Ethan. In terms of delivery as a percent itself, as I mentioned in the previous question, it has continued to improve and increase in the last 10 years. So the trend is not going away. And KFC right now is about 60% plus is from delivery and takeaway and then about 30% from dining. And our store portfolio emerged to reflect that, right? Because our store becomes smaller, become more delivery focused. Same as Pizza Hut, we have the sectorize store that is very delivery driven. And for Pizza Hut, the delivery business, of course, is in the high 30s, too. So they will continue to grow. And there are two things that I would like to mention in our delivery sales going forward. One is we are going for the smaller order size of the delivery business because you will notice that traditionally and historically, our ticket-average for delivery business for both KFC and Pizza is very high and probably slightly too high.
So for KFC, we have reduced the delivery fee, tested in quarter four last year, and we roll it out in quarter 1 this year to encourage and to grow the smaller order delivery business. And why? Because it’s hard for a customer to make the choice when the delivery fees too high when the order size is smaller. So it will. So we’ll continue to do it. And then Pizza Hut have a bit more work to do because we have to have enough 1% new choice for us to make that happen. So well, look at it in a positive way, even more opportunity here. So one opportunity is the lower price pizza that helps because that incurs smaller order. Second is, if you’re in China, you will know that we just launched the burger business, which, by the way, is very exciting. I love the burger from Pizza Hut as well.
I love the burger from KFC. It’s very different. The KFC one is more juicy, and then Pizza Hut one is very unique. It’s hard to describe how unique it is until you try it. I really encourage you to cross the border and try it. The goal is make — a pizza well, the pizza — bread of pizza bun is made of the pizza dough. So it’s freshly baked in the store. And that alone is very unique and the beef itself is brilliant. And other than great product, it’s one person meal because the average ticket size for Pizza Hut is more than one person. So with that, we will continue to grow to some of the smaller order delivery business. And both are the right thing to do and has quite a bit of margin there. When it comes to the platform rider, you guys know that for years and years, we insist on using our own delivery rider because of the quality.
Although it’s slightly higher cost, we know that. However, time has changed. We have learned that when we sit, again tested, and so that we know that is the case. It’s the net location, some platform rider, the quality is very good. So we test them in quarter four last year, and then we continue to test it in quarter one this year. Why this is important? Because this is Chinese New Year. When the demand is very robust, and we have to make sure even when the demand is high, the quality is still good. And we are very happy with the test. So for KFC, we’ll continue to roll that out in select locations on the condition that the quality is as good. But they are more affordable. So they help manage the delivery business margin. And then Pizza Hut, we have not started the [indiscernible] rider mix practice yet.
So that will be something to be followed. So I will pause here. Thank you so much, Ethan.
Ethan Wang: Sorry, I know we are running out of time. So when we mentioned selected locations, they are currently high tier cities, are you sure.
Joey Wat: Sorry, I could not hear you. Select location? It’s everywhere. We evaluate based on the quality. So it could be high tier city or low [technical difficulty].
Ethan Wang: Got it. Thank you, Joey.
Joey Wat: Thank you, Ethan.
Operator: Thank you. The next question comes from Sijie Ling from China International Capital Corporation Limited. Please go ahead.
