“Boknal is Coming Soon, What to Do?”... The Most Price-Increased Dining Item This Year: 'Chicken'

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] This year, chicken has been identified as the food service item with the highest price increase. With the summer peak season approaching, including the early and mid-summer days of Chobok and Jungbok next month, consumers are expected to face greater financial burdens.

According to the National Statistical Portal (KOSIS) of Statistics Korea on the 13th, among 39 food service items as of the end of last month, chicken showed the highest price increase rate at 6.6% this year. Compared to May last year, the price rose by 10.9%. Among the 39 food service items whose prices all increased compared to the end of last year, jajangmyeon (6.3%), tteokbokki (6.0%), kalguksu (5.8%), jjambbong (5.6%), and gimbap (5.5%) followed chicken.

In fact, chicken franchises have been raising prices since last year. Kyochon Chicken increased the price of its signature menu ‘Honey Combo’ from 18,000 won to 20,000 won in November last year, raising prices by 500 to 2,000 won, and in December, bhc raised consumer prices by 1,000 to 2,000 won. Recently, Genesis BBQ increased the prices of all menu items by 2,000 won last month.

The industry states that the price increase in chicken is influenced not only by the cost of raw chicken but also by the rising prices of frying powder and cooking oil. According to the Livestock Products Quality Evaluation Institute, the average transaction price of size 10 chicken supplied to franchises (excluding brining, cutting, packaging fees, and value-added tax) rose 17.9% from 2,983 won in December last year to 3,518 won last month.

However, consumer groups have pointed out that the reasons given by companies for the price hikes are insufficient. According to the Price Monitoring Center of the Korea Consumer Organization Council, the price of the main raw material, chicken, based on sizes 9 to 10, fell from 3,297 won in 2015 to 2,865 won in 2020, and rose to 3,343 won last year. The council stated that the price increase last year alone is insufficient justification for the price hikes, and it is difficult to understand franchises’ headquarters using chicken prices as an excuse to raise prices when they receive stable chicken supply contracts for 6 months to 1 year.

Meanwhile, chicken supply is expected to be smooth ahead of the summer peak season such as Boknal (the hottest days of summer). According to the Agricultural Outlook Center of the Korea Rural Economic Institute (KREI), the number of chickens slaughtered during the summer peak season is expected to increase compared to last year and the average year due to increased chick production since mid-May.

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