BBQ Hwanggeum Olive Price Increase from 20,000 Won to 23,000 Won
Price Increase After 2 Years... Jamaica Tongdari 24,000 Won
"Raw Material, Delivery Fees Worsen Franchisee Profits"
The price of BBQ's signature menu item, 'Hwanggeum Olive Chicken Fried,' will increase by 3,000 won to 23,000 won.
On the 21st, BBQ announced that it will raise the recommended retail prices of 23 products by an average of 6.3%. This is the first increase in two years since May 2022.
Accordingly, the price of Hwanggeum Olive Chicken Fried will change from 20,000 won to 23,000 won. The price of Jamaica Tongdari Gui will rise from 21,500 won to 24,000 won.
However, out of a total of 110 products, prices for 56 products, which is half, will remain unchanged. This includes 30 chicken products such as Hwanggeum Olive Chicken Inner Tender, Kkanpung Chicken, and Jamaica Sotteokmannachicken, as well as all 26 side menu items like pizza and burgers. A BBQ representative emphasized, “We did our best to minimize the number of products subject to price adjustments amid the high inflation situation.”
BBQ explained that this price increase is due to the rising costs of raw materials, minimum wage, rent, and other utility expenses (gas, electricity, etc.), which have severely impacted the profitability of franchise stores (small business owners and family stores).
In fact, according to BBQ’s own survey, the sales of franchise stores (based on the top 40% of stores by sales) increased by about 20% in April this year compared to the same period last year, but operating profit decreased by nearly 10%, indicating serious operational difficulties for franchisees.
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A BBQ representative stated, “Above all, we deeply apologize to our customers who love and use BBQ for having to adjust prices,” and added, “Due to the continued rise in raw material prices, minimum wage, rent, utility costs, as well as soaring delivery app fees and delivery rider expenses, we have been forced to adjust prices to improve the deteriorating profitability of our franchise stores.”
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