"Price Increase of 1000 Won"... Dining Out Prices Fluctuate as Food Costs Rise One After Another

A notice board informing about a price increase is posted at a restaurant in Dongdaemun-gu, Seoul.

[Asia Economy Reporter Seungjin Lee] Following last year, food prices continue to rise in the new year, causing fluctuations in dining-out costs. Since the beginning of the year, more places have been raising menu prices by 500 to 1000 won, increasing the financial burden on consumers.

A, who runs a curry restaurant in Dongdaemun-gu, Seoul, raised the prices of all menu items by 500 to 1000 won starting January 1. After a price increase last summer, menu prices have risen by up to 1500 won within just six months. A said, "Nothing has escaped price hikes, from cooking oil to the chicken we receive from suppliers and delivery service fees," adding, "I understand that surrounding stores are also considering price increases."

According to the food industry on the 19th, domino-like price hikes of major food products continue from the new year. CJ CheilJedang raised prices of 35 types of fish cakes by an average of 10.4% starting January 1, marking the first increase in 2 years and 10 months. Dongwon F&B also raised consumer prices of 64 types of fish cakes by an average of 10% this month, the first increase in 2 years and 9 months.

Price increases for sauces such as gochujang, doenjang, and seasoning sauces from CJ CheilJedang and Daesang, which hold the first and second largest shares in the domestic sauce market, are also expected. CJ CheilJedang plans to raise sauce prices by an average of 9.5% starting February 3, while Daesang will increase sauce prices by an average of 11.3% starting February 7. Earlier, on the 4th, Sempio Foods, the leading soy sauce company, raised the wholesale prices of 17 types of soy sauce by 8%.

The price hikes of major food products like sauces have deepened concerns in the dining-out industry. In Korean cuisine, sauces are used in most side dishes and dishes, making it difficult to avoid cost burdens. On top of this, since the end of last year, major delivery service companies have raised delivery fees by 500 to 1000 won, leading to complaints that businesses have reached a dead end.

Franchise store owners, who cannot raise prices without consulting the headquarters, express dissatisfaction that cost burdens have increased further this year. B, who operates a pizza franchise, explained, "The headquarters raised the supply prices of ingredients like cheese, but they do not allow menu prices to be increased for competitiveness reasons, which puts us in a difficult situation," adding, "We are even considering terminating the franchise contract because there is nothing left to gain."

Since last year, major franchise dining companies such as Lotteria, McDonald's, and Kyochon Chicken have adjusted prices. However, relatively smaller franchise companies are reportedly hesitant to raise menu prices due to concerns about price competitiveness.

An industry insider said, "Just because the top one or two competitors raised prices does not mean that latecomers can easily follow suit," but added, "However, due to strong demands from franchise owners, even small-scale franchises are expected to implement price increases, and price hikes in neighborhood commercial districts are also anticipated."

Meanwhile, coffee prices are also rising due to increases in international coffee bean prices. On the 18th, Lotte Nestl? Korea raised the wholesale prices of all products, including the global coffee brand Nescaf?, by an average of 8.7%. Industry leader Dongseo Food raised coffee product prices by an average of 7.3% on the 14th. Earlier, Starbucks Korea raised prices of some beverages, including Americano and caf? latte, by 100 to 400 won starting January 13.

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