Chicken and egg prices are rising at the same time due to the impact of highly pathogenic avian influenza (AI), increasing cost pressures on the chicken franchise industry. Supply declines and higher costs are overlapping, but raising retail prices is also difficult amid the government's price-stability stance, causing the burden to pile up.
As of the 30th, according to the retail and food industries, major chicken producers such as Harim, Maniker and Olpam recently raised the prices of chicken supplied to chicken franchises and big-box retailers by about 5% to 10%. As of the 27th, the wholesale price that chicken companies supply to big-box stores, distributors and chicken franchise brands was 4,256 won per kilogram, up 6.7% from the same period a month earlier. The industry sees the expansion of culling of breeder parents as a factor behind the recent rise in chicken prices.
During the 2025–2026 winter season, 440,000 broiler breeders were culled. That is more than triple from the same period a year earlier. An official at a broiler processing company said, "A decrease in breeders leads to reduced chick production, which inevitably cuts shipments for a certain period," adding, "With AI reducing the stock under care, supply has tightened."
As a result, prices are on the rise. According to the Korea Institute for Animal Products Quality Evaluation, the retail price of chicken recently stood in the 6,500-won range per kilogram. This is the record high since mid-2023. Wholesale prices are also in the 4,200-won range per kilogram, continuing an upward trend from the previous month.
Egg prices are also climbing. Laying hens have been culled due to AI, reducing supply. An official in the food industry said, "Eggs are an essential ingredient in dining-out and processed foods," adding, "Because chicken and eggs share the same poultry production base, supply-demand shifts occur simultaneously."
On top of this, rising prices of raw and subsidiary inputs such as feed, cooking oil and packaging materials are broadening the cost burden across the board. A broiler processing company official said, "Feed costs have risen due to higher international grain prices and exchange rates," adding, "As the Middle East situation becomes unstable, prices for plastic containers and aluminum packaging are also increasingly likely to rise."
In this situation, the chicken franchise industry is in a bind. Given the structure with a high share of domestic chicken use, it is hard to avoid higher costs, but it is also hard to raise consumer prices.
Chicken franchise companies are drawing a line on price hikes. Major chicken franchises such as BBQ, bhc and Kyochon Chicken say they have no plans to raise prices. In consideration of the government's price-stability stance and consumer burdens, they are cautious about price adjustments. An official in the chicken franchise industry said, "Even amid reduced supply due to AI, we are working to stabilize raw chicken procurement through preemptive actions by our purchasing teams," adding, "Even if prices go up, if there is no supply, sales are difficult anyway, so we are focused on securing the volumes needed for franchisees."
Another chicken franchise official said, "For now, the mood is to respond with expense adjustments and operational efficiencies rather than price increases," adding, "Peak season such as the pro baseball season is ahead, but with consumption already subdued, it is hard to raise prices indiscriminately. For the time being, we plan to watch the situation and respond."
Lee Eun-hee, a professor of consumer studies at Inha University, said, "Right now, companies have no choice but to be cautious about price hikes in line with the government's price management stance. But if the current situation drags on, there is a high chance they will bide their time and then raise prices," adding, "The point when stockpiles are exhausted will be the inflection point for consumer price increases."