Kyochon Chicken Price Increase Up to 2,000 Won... One Whole Chicken Costs 20,000 Won Even Without Delivery Fee

Price Increase Amid Record-Breaking Performance
Average 8.1%↑... 'Honey Combo' and Others at 20,000 Won

[Asia Economy Reporter Lee Seung-jin] Kyochon Chicken, the number one chicken franchise in the industry, is raising chicken prices for the first time in seven years. With this increase, the era of "20,000 won per whole chicken" has become a reality.

This recommended price adjustment by Kyochon Chicken is the first in seven years since the partial meat (combo, stick) menu adjustment in 2014, with changes ranging from 500 to 2,000 won per item. Whole chicken menus such as Kyochon Original, Red Original, Honey Original, and boneless menus will see a 1,000 won increase, while partial meat menus, which have higher cost burdens, will be raised by 2,000 won. The average increase rate is 8.1% (excluding frozen menus).

Looking at the representative menus, Kyochon Original and Honey Original will increase from 15,000 won to 16,000 won, Kyochon Wings and Kyochon Combo from 17,000 won to 19,000 won. Red Wings, Red Combo, and Honey Combo will be adjusted from 18,000 won to 20,000 won each. Recently launched products such as the Shin-Hwa series, Cheese Truffle Boneless, and Balsamic Chicken will maintain their existing prices without adjustment. Additionally, some side menus will be raised by 500 won.

Kyochon expects this price adjustment to improve franchise profitability. With years of accumulated labor cost increases and various fee burdens, combined with recent widespread inflation, improving franchise profitability has become urgent. The timing and extent of the adjustment were decided through consultations between Kyochon Chicken headquarters and the franchise communication committee.

The company stated, "The average price increase rate excluding frozen menus is 8.1%. With years of accumulated labor cost increases and various fee burdens, combined with recent widespread inflation, improving franchise profitability is urgent." They added, "Due to the accumulated cost burden, improving franchise profitability is critical, and we could no longer delay the timing of the price adjustment."

However, there are criticisms that it is difficult to sympathize with the price increase made amid the COVID-19 pandemic when delivery demand surged and record-high performance was achieved last year. Kyochon F&B's sales last year were 447.6 billion won, an 18% increase from the previous year, and operating profit was 41 billion won. The cumulative sales up to the third quarter of this year were 378 billion won, and operating profit was 32.3 billion won, growing about 15% compared to the same period last year.

With the industry leader raising prices, concerns about a domino effect on prices from competitors like bhc and BBQ are emerging. Typically, when the top company raises prices, competitors tend to follow after some time, so it is speculated that bhc and BBQ, ranked second and third in the industry, may also raise prices. In fact, when Kyochon Chicken raised prices in 2018, other companies in the industry followed suit one after another.

However, bhc and BBQ agree on the necessity of price increases but have drawn a line by stating that they have no plans to raise prices for the time being due to concerns about consumer backlash and price resistance.

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