Foreign Franchise McDonald's and Burger King, Is Korea Being Taken Advantage Of?

Delivery Menu Prices Higher
Consumer Agency's Corrective Actions Ignored

[Asia Economy Reporter Lim Hye-seon] As the Korea Consumer Agency pointed out that hamburger franchise companies sell delivery food at higher prices, foreign hamburger franchises continue their bold business practices. It has been revealed that they pass delivery fees onto product prices and also charge additional delivery fees for customers purchasing small quantities.

More Expensive Delivery Food Plus Delivery Fees

According to the franchise industry on the 12th, customers using McDonald's and KFC delivery services must pay a 2,000 KRW delivery fee for orders under 12,000 to 15,000 KRW. Although the delivery fee is already included in the delivery product price, which is 500 to 3,100 KRW more expensive than in-store prices, an additional delivery fee is imposed, causing a 'double burden' on consumers.

Earlier, the Korea Consumer Agency pointed out that hamburger franchises such as McDonald's, KFC, Burger King, and Lotteria set all product prices higher for delivery than in-store prices despite being the same products. For delivery orders, hamburger sets were 1,000 to 1,200 KRW more expensive, single hamburgers 700 to 900 KRW more, side menus 600 to 700 KRW more, and drinks 500 to 700 KRW more compared to in-store prices. The more the consumer orders, the more delivery fees they pay. Based on a family of four, ordering four hamburger sets for delivery costs at least 4,000 KRW and up to 4,800 KRW more. These companies were also criticized for not providing proper information, limiting consumers' right to know and choice. On delivery platforms, delivery fee information was either not displayed at all or shown as '0 KRW' or 'free.'

Lotteria Corrective Action, Others ‘Ignore’

About five months have passed since the Consumer Agency's criticism, but only the native franchise Lotteria has taken corrective action. Foreign franchises such as McDonald's, Burger King, and KFC maintain the current price structure. Lotte GRS, which operates Lotteria, decided to separately charge delivery fees (delivery tips) from this month, abolishing the previous practice despite concerns that consumers might misunderstand Lotteria as the only brand charging delivery fees. It is reported that CEO Chawoo Chul of GRS pushed this measure forward, telling employees, "If something is wrong, it must be corrected," and "There is no need to move with competitors." Instead of charging delivery fees, Lotteria plans to lower the minimum order amount by about 30%. The previous minimum order amount was 13,000 KRW, but from the 6th, delivery services can be used starting from 9,000 KRW.

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