Price Hikes, Then More Price Hikes... Food and Beverage, Dining Out Prices Raised Twice in Less Than a Year (Comprehensive)

[Asia Economy Reporter Moon Hyewon] Since the end of last year, price increases in the food and beverage and dining industries, including chicken, hamburgers, and coffee, have been continuous, increasing the burden of food expenses on consumers.

According to the franchise industry on the 14th, KFC raised prices on some menu items, including the Zinger Burger, by 200 to 400 won starting from the 12th. This is the first increase in half a year since January this year.

After raising prices on some menu items in February, Goobne Chicken increased prices by 1,000 won each on partial meat menu items such as wings, legs, and boneless chicken starting from the 4th of this month. For example, the popular menu item ‘Goobne Gochu Basasak’ boneless chicken price rose from 21,000 won to 22,000 won.

Kyochon Chicken, which raised chicken menu prices in November last year, recently saw some franchise stores increase delivery fees from the previous 3,000 won to 4,000 won, a 33% increase. The headquarters stated that this was “at the discretion of some franchise stores” and denied it was an additional price increase, but consumers who pay the total price including delivery fees when ordering are complaining, saying, “Isn’t this a sneaky additional increase?”

Subway raised prices on 15-centimeter (cm) sandwiches by an average of 5.8% starting from the 12th of this month. Subway, which raised prices on a total of 74 menu items, also increased sandwich and salad prices by an average of 5.1% in January this year.

Lotteria raised prices on major menu items by 4.1% in December last year and then increased prices on 81 products, including burgers, by an average of 5.5% again on the 16th of last month, just half a year later. The price of the signature Bulgogi Burger and Shrimp Burger single items was adjusted from 4,100 won to 4,500 won, and the set menu price was adjusted from 6,200 won to 6,600 won.

Coffee Bean Korea raised prices on 49 products, including coffee beverages, by 100 won in February and then increased prices by an additional 100 to 300 won in May. As a result, Coffee Bean’s Americano (size S) price rose from 4,800 won in February to 4,900 won and has been sold at 5,000 won since May.

The chain price increases in the food and beverage and dining industries are decisions made by companies due to pressure from rising prices of raw and subsidiary materials such as grains. International grain prices have been rising for seven consecutive quarters since the end of 2020. This is due to abnormal climate phenomena, prolonged COVID-19-related international logistics supply chain disruptions, and supply shortages caused by the Russia-Ukraine war. The average import price of milling wheat last month was $453 per ton (453 dollars per ton), up 42.0% from $319 a year ago. The domestic dining price index for June, recently announced by Statistics Korea, rose 8.0% compared to the same period last year, marking the highest level in 29 years and 9 months since 8.8% in October 1992.

An industry official said, “With the combined effects of rising raw material, logistics, and labor costs, as well as grain supply instability caused by the Russia-Ukraine war, product costs are rising sharply,” adding, “This upward trend is expected to continue across the industry for the time being.”

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