"Worried About Another Chicken Price Hike? Despite War-Driven Cost Increases, BBQ Freezes Prices"

Rising Cost Burden from Middle East Instability and Surging Raw Material Prices

Genesis BBQ Group, a chicken franchise group, announced on the 20th that it has decided not to raise the selling price of its chicken or the supply price to its franchisees.

BBQ explained that due to heightened instability in the Middle East, international oil prices have risen and grain price volatility has increased, leading to a sharp jump in all raw material costs, including breeder chicken, feed, and frying oil. The company added that the burden has been further exacerbated by increased costs for food ingredients, packaging materials, logistics, and even delivery platform fees.

BBQ stated that the head office will directly absorb the increased costs resulting from higher raw material prices, and that it will not raise consumer prices or the supply prices of raw and subsidiary materials. The company did not specify how long it will maintain this policy.

A BBQ official said, "Even with current calculations, the additional cost exceeds several billion won, and it is difficult to predict how much further it will increase. However, the head office has decided to shoulder all rising costs and endure the difficulties. By actively participating in the government's price stabilization efforts, we plan to minimize the burden on consumers and franchisees."

The price of BBQ's signature menu item, Golden Olive Chicken, is currently 23,000 won. After increasing the price from 20,000 won to 23,000 won at the end of May 2024, the current price has been maintained.

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