bhc Chicken, Supply Price of Frying Oil to Franchise Stores Down 24% Compared to August

bhc Chicken announced on the 18th that starting from the 16th, it has decided to reduce the supply price of its proprietary frying oil, ‘High Oleic Sunflower Oil,’ supplied to franchise stores by 24% compared to August.

[Photo by bhc Chicken]

This price adjustment follows a 21,000 KRW reduction on the 7th of last month, marking an additional 4,500 KRW cut after about 40 days, making it the sixth reduction since the pandemic began in 2021. As a result, the price of bhc frying oil has dropped to the pre-pandemic level of around 70,000 KRW per 15kg after two years.

According to bhc Chicken, the international market price of edible oil raw materials has continuously surged due to three major adverse factors: increased global logistics and transportation costs caused by the COVID-19 pandemic, rising grain prices due to climate change, and the war between Russia and Ukraine. Industries that heavily use edible oil, such as the chicken industry, ramen, and confectionery sectors, have faced severe difficulties.

In July last year, bhc Chicken had no choice but to adjust the supply price of frying oil to franchise stores following persistent price increase requests from supply partners due to the sharp rise in sunflower oil raw material prices. The company promised to promptly reduce prices if conditions allowed in the future.

This recent price adjustment reflects the somewhat stabilized international market price of sunflower oil raw materials, creating an environment where bhc Chicken could lower the price of its High Oleic Sunflower Oil. The bhc Chicken franchise headquarters quickly aligned with this trend and reflected the price reduction in the supply price to franchise stores.

A bhc Chicken representative stated, “Most food service franchise operators are experiencing worsening profits not only due to rising raw material costs but also because of increased labor costs, rent, order mediation fees, and delivery agency fees. Along with this reduction in frying oil supply prices, we will discuss and consider various measures to reduce the operational burden on store owners together.”

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