[Exclusive] "Franchise Owners Are Angry"... BBQ Raises Prices on 39 Franchise Supply Raw Materials

Most Items Including Sauce, Powder, Cooking Foil, and Chicken Mu Up
15-Liter Oil Container Price Raised from 120,000 to 160,000 Won... 40,000 Won Increase

Yoon Hong-geun, Chairman of Genesis BBQ Group

[Asia Economy Reporter Moon Hyewon] Chicken franchise BBQ is significantly raising the prices of chicken along with the supply costs of raw materials. Following the company’s record-high performance last year, there are complaints that the headquarters is passing on the increased fixed costs to consumers and franchise owners. Especially since the price hike announced on the 22nd cited ‘requests from franchise owners’ as the reason, critical voices are expected to be considerable.

According to the industry on the 28th, BBQ will increase the prices of 39 raw material items supplied to franchise owners starting next month on the 1st, including olive oil (100% extra virgin olive oil), powders and sauces, cooking foil, packaging, and pickled radish, by up to 71%.

A 15-liter container of olive oil will rise from 120,000 won to 160,000 won, a 33% (40,000 won) increase. Cooking foil (25cm X 50M) will go from 3,580 won to 6,100 won, a 70% (2,520 won) increase, and JHP Carbonara sauce will increase by 8.5% (1,400 won) from 16,400 won to 17,800 won. Additionally, black pepper seasoning (15g) will rise by 56% (14,000 won) to 25,000 won, BBQ sauce by 42% (2,750 won) to 9,300 won, and inner chicken tenderizer by 21% (750 won) to 4,300 won.

This price hike is interpreted as a follow-up measure to the 2,000 won increase in chicken menu prices. Previously, BBQ announced that starting from the 2nd of next month, all chicken items will be raised by 2,000 won each, including the Golden Olive Chicken from 18,000 won to 20,000 won and the Golden Olive Chicken Drumstick from 19,000 won to 21,000 won.

A BBQ official stated, "This is an unavoidable measure due to the prolonged COVID-19 logistics crisis and the surge in international grain prices following Russia’s invasion of Ukraine," adding, "It was decided after consultations with franchise owners."

However, franchise owners raised their voices, saying the headquarters’ decision was a unilateral notice made without consultation or discussion.

An anonymous franchise owner said, "I feel this is going too far. The talk about coexistence with franchisees and supporting small business owners seems like a mere illusion," and added, "I plan to close my store after this summer."

Another franchise owner criticized, "We were notified unilaterally," and questioned, "The headquarters says they consulted with franchise owners, but I don’t know with whom they actually consulted."

Meanwhile, BBQ had previously notified franchise owners of price increases for nine items including olive oil and fresh meat shortly after raising chicken prices by 1,000 to 2,000 won in 2018, but withdrew the plan following strong opposition from franchise owners.

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