Mom's Touch announced on the 4th that it has decided to fully cover the 6.6 billion won increase in the cost of chicken until the end of the year in order to alleviate the burden on franchisees. Previously, due to the avian influenza (AI) outbreak in Brazil in May, the prices of chicken soared domestically and internationally.
According to Mom's Touch, the 6.6 billion won increase corresponds to 9% of its operating profit from last year. During the supply crisis of Brazilian chicken, the franchise industry raised prices citing an increase in chicken costs, but Mom's Touch did not pass on the burden and kept both the franchise supply price and consumer sales price unchanged. They also secured additional chicken supplies from other regions to maintain a stable supply system.
In particular, as Mom's Touch faced difficulties in securing high-quality whole chicken thighs, a key raw material, due to the aftermath of the AI outbreak in Brazil, it quickly introduced alternative menu options based on R&D (research and development) to defend against declining sales at franchise locations.
A Mom's Touch official said, "The decision to have the company cover the 6.6 billion won increase in chicken costs was a significant one for us, but it was possible because of our brand philosophy that 'the stable operation and growth of franchisees is the growth of the headquarters.' We will continue to prioritize coexistence with franchisees and respond proactively to all crises."