"Even as Wheat and Soybean Prices Fall, Dining Out Costs Remain High"…Government Summons Franchise Representatives

Major Food Service Industry Price Stabilization Meeting Held on the 21st
"High Increase Rate in Dining Prices Despite Decline in Major Ingredient Costs"

On the 21st, the government decided to request the dining-out industry to refrain from raising prices. The purpose is to reduce the burden of dining-out costs on ordinary citizens.

The Ministry of Agriculture, Food and Rural Affairs announced that it will hold a price stabilization meeting with major dining-out franchise industries such as coffee, hamburgers, and chicken this afternoon.

An official from the Ministry explained, "Although the dining-out price inflation rate has been on a continuous decline since peaking at 9% in September last year, it still exceeds the overall consumer price inflation rate," adding, "This meeting was organized to explore additional stabilization measures."

At the meeting, the Ministry plans to explain that prices of key raw materials (food ingredients) such as flour, cooking oil, and coffee beans are decreasing due to lower international and import prices, extension of tariff quotas, and flour price stabilization projects. The international price of wheat dropped 40% from a peak of $419 per ton in May last year to $253 per ton in March this year. Soybean oil also fell 32% during the same period, from $1,842 per ton to $1,249 per ton.

The government has been working to ease the management burden on the dining-out industry by extending the application of tariff quotas on major food raw materials and raising the limit on input tax credit deductions. Additionally, since January this year, the scope of permitted employment has been expanded to cover the entire dining-out industry, and from next month, employment of kitchen assistants in restaurants will be expanded nationwide from designated special areas, continuing efforts to resolve labor shortages in the dining-out industry through improvements in foreign workforce regulations.

Yang Ju-pil, Director of Food Industry Policy at the Ministry of Agriculture, Food and Rural Affairs, said, "Although these are difficult times for everyone, we ask the dining-out franchise industry and related associations to cooperate as much as possible to stabilize food prices by refraining from price increases for the time being," adding, "The government will also do its utmost to discover and review management support tasks through continuous communication with the industry to alleviate their management burdens."

[Image source=Yonhap News]

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