As some food companies such as ramen makers are cutting prices in line with the government's push to stabilize prices, global chicken franchise KFC has decided to raise prices for its chicken menu in Korea.
According to the industry on the 13th, starting today KFC will raise the price of its Original Chicken by 300 won and other chicken items by 200 won each, increasing prices on a total of 23 menu items. This reverses its stance last month that it had not reviewed price hikes. Regarding its pricing policy, KFC told ChosunBiz on Feb. 24 that "we do not set prices simply based on cost; we make decisions by considering multiple factors," and "we have not recently reviewed price increases."
However, not all menu prices are going up. The Zinger Double Down Drumstick will be cut by 100 won. Explaining the background for the increase, KFC said, "Due to the ongoing strong dollar and rising raw material prices, as well as increases in various expenses, we adjusted prices on some items to maintain stable quality and service."
This is the first price increase in about 11 months since April last year. At the time, citing higher raw material prices and various expenses, KFC raised prices on some items such as chicken and burgers by 100 to 300 won. Last month, Taco Bell, the Mexican food brand operated by KFC, also raised prices on some items such as tacos and quesadillas by up to 16.9%.
The industry is paying attention to the fact that this move comes as the government has been emphasizing price stability and pressuring the food and dining sectors to cut prices. Shinsegae Food's No Brand Burger joined the government's push and recently released the "Amazing Bulgogi" for 2,500 won. That is about half the price of a typical franchise hamburger.
President Lee Jae-myung said at a senior secretaries' meeting at the Blue House on the afternoon of the previous day, "I was briefed that cooking oil and ramen producers will cut prices on some products by as much as double digits starting with shipments next month," adding, "It will greatly help ease the public's burden from prices and stabilize livelihoods." KFC's performance is improving. Last year, revenue rose 29.3% from a year earlier to 378 billion won, while operating profit increased 50.6% to 24.7 billion won.