Rice Price Gradually Rising... Steamed Rice Now 1500 Won

Rice Prices at Highest Level for Months
Raising Food Prices May Drive Customers Away
Steamed Rice Price Increased Instead of Main Dishes
Egg Price Rise Puts Bakeries on Alert

[Asia Economy Reporter Seungjin Lee] A bean sprout soup restaurant in Jongno-gu, Seoul. The price of a bowl of soup remains 7,000 won, the same as last year, but customers feel the price has increased by more than 1,000 won. Eggs, which used to be included in the soup until last year, now cost an additional 500 won. The basic side dishes have been reduced from three to two, and the free bowl of rice that was given at each table now costs 1,500 won separately.

Song Hyun-woo (pseudonym), who frequently visits restaurants, said, "Three colleagues ate the same amount as last year, but the bill was 3,500 won higher, meaning the actual food price increased by more than 10%."

Dining-out prices are rising everywhere in the new year. Avian influenza (AI) has hit farms, causing egg prices to soar, and rice prices show no sign of dropping after reaching a record high last year. Due to the longest rainy season last year, prices of major ingredients have also risen, and dining businesses unable to bear the increased costs are consecutively raising prices.

Rice Bowl Now 1,500 Won

The era of free extra bowls of rice and the formula ‘rice bowl = 1,000 won’ has long been broken. This is due to rice prices, which have hovered near record highs for several months. According to the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 26th, the retail price of 20kg of rice as of the 25th was 59,961 won, 30% higher than the average price. Rice prices have maintained around 59,900 won for three months since surpassing 60,000 won for the first time in November last year.

The 1,500 won rice bowl price is rapidly spreading, especially among delivery services. Because the price increase of rice bowls is a psychological barrier for customers, some businesses sell rice bowls under different names such as ‘Gobongbap’ or ‘Meoseumbap’ instead. Some have raised the rice bowl price to 1,500 won and added a note saying, "We will serve more rice upon customer request."

For dining businesses, raising the rice bowl price is like a last resort, but they say they can no longer bear the rising rice prices. Kim Jae-young (pseudonym), who runs a Korean set meal restaurant in Jongno, said, "There is a strong perception among Koreans that rice is provided as a basic staple, so raising the rice bowl price inevitably leads to strong resistance. However, raising the main dish price in times like these could drive customers away, so we adjust by raising the rice bowl price."

Egg Side Dishes Disappear Due to ‘Gold Eggs’

With AI continuing for nearly four months, the price of a carton of eggs has risen by more than 2,000 won, reaching 6,500 to 7,000 won. Due to the egg price becoming as valuable as gold, egg side dishes have disappeared from restaurants. Even egg roll snacks have vanished from pubs. Dining businesses that use a lot of eggs are responding by changing menus or raising prices.

The bakery industry is in an emergency. Bakery A in Dongdaemun-gu recently raised prices of cakes such as castella, which contain many eggs, by 500 won each. To make matters worse, they received a notice from their ingredient supplier that egg supply might be cut off, putting them in a situation where they must worry about temporary closure.

SPC Group, which operates Paris Baguette and others, is also on alert. The nightmare of the ‘egg crisis’ during the 2017 AI outbreak, when supply problems forced them to stop selling castella products, is still vivid. After this year’s AI outbreak, they have quickly contracted with new farms to ensure supply, but with egg prices continuing to rise, price increases have become inevitable.

An SPC Group official explained, "We do not plan to raise product prices immediately, but if prices do not stabilize over a long period, we will first consider suspending some products as in 2017 to seek price stabilization. If the situation persists, price increases will be unavoidable."

This content was produced with the assistance of AI translation services.