"The phrase 'Let's just grab a hamburger because we're busy' is a luxury... Prices up 17% in a month, highest in 19 years"

Hamburger Chains Raise Prices 2-3 Times Recently
Pizza Prices Surge 12.2% Last Month
Dining Out Costs Soar... Consumer Burden Increases

Last month, the consumer price inflation rate for hamburgers exceeded 17%, marking the highest level in 19 years.

According to the National Statistical Portal of Statistics Korea on the 4th, the price of hamburgers last month rose 17.1% compared to the same month last year. The hamburger price inflation rate is the highest in 18 years and 9 months since July 2004 (19.0%). The hamburger price inflation rate showed a steep upward curve, rising from 7.1% in February to 10.3% in March, and then to the 17% range last month.

Also, the pizza price inflation rate last month was 12.2%, the highest in 14 years and 5 months since November 2008 (13.2%). It increased from 8.8% in January this year to 10.7% in February, 12.0% in March, and rose slightly again last month.

Chicken prices, which showed a slowdown last month, also rebounded. The chicken price inflation rate last month was 6.8%, 1.6 percentage points higher than the previous month. The chicken price inflation rate had been slowing for seven consecutive months from August last year (11.4%) to March this year (5.2%).

Dining-out Prices Still Soaring... Increasing Consumer Burden

[Image source=Pixabay]

Although the overall consumer price inflation rate fell to the 3% range last month for the first time in 14 months, dining-out prices for hamburgers, pizza, and chicken?mainly operated by franchises?are still soaring.

Last month, the hamburger price inflation rate was 4.6 times the overall consumer price inflation rate (3.7%), pizza was 3.3 times, and chicken was 1.8 times. This is related to major franchise companies raising prices several times.

Lotteria raised product prices by an average of 4.1% in December 2021, followed by a 5.5% increase in June last year, and another 5.1% increase in February this year. McDonald's raised prices on some menu items by an average of 5.4% in February and August last year, and again in February this year. Burger King raised prices on some products in January and July last year, and again in March this year.

KFC also raised prices three times, in January and July last year and February this year, while Mom's Touch raised prices on some menu items three times, in February and August last year and March this year.

The same applies to pizza. Mr. Pizza raised prices on some pizza single items in March last year and increased prices on pizza and side menus in February this year. Domino's Pizza raised prices twice, in January and August last year, and Pizza Hut, Papa John's, and Pizza Alvolo also raised prices last year.

Among chicken franchises, Kyochon F&B, the operator of Kyochon Chicken, raised the recommended consumer prices by up to 3,000 won on the 3rd of this month. As a result, the Soy Sauce Original increased from 16,000 won to 19,000 won, and the Honey Combo from 20,000 won to 23,000 won.

[Image source=Pixabay]

However, recently, as the government has requested restraint on price increases to stabilize prices, companies seem to be bearing some of the burden. On the 21st of last month, the Ministry of Agriculture, Food and Rural Affairs held a meeting with major dining-out franchise industries including Starbucks, Lotteria, Kyochon F&B, bhc, Genesis BBQ, Mom's Touch, Bonjuk, Pizza Alvolo, Kim Ga Ne Gimbap, Baruda Kim Sun Saeng, and Yamsaem Gimbap, urging them to refrain from raising prices for the time being. However, the industry expects that if burdens such as raw material costs and labor costs are not resolved, companies will face limits in enduring the situation.

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