Chicken franchise BBQ operator Genesis BBQ Group (BBQ) said on the 20th it will freeze chicken retail prices and the supply prices to franchisees. Although international oil prices have surged due to instability originating in the Middle East and prices of core materials and supplies such as breeding stock, feed, and frying oil have jumped, the company said it will join the government's push to stabilize prices.
In particular, beyond the spike in international oil prices and materials and supplies costs, expense for food ingredients, packaging, logistics, and platforms (including delivery app commissions) has been piling on, increasing the burden on dining-out franchise corporations to adjust pricing policy amid cost pressures and weakening consumption.
According to the Bank of Korea, the import price index in March rose 16.1% from the previous month. That is the biggest jump since the foreign exchange crisis. Minerals including crude oil, as well as coal and petroleum products and chemical products, appear to have led the increase. As a result, expense pressure from raw materials is expected to grow further.
In this situation, BBQ plans to shoulder the expense from rising costs at headquarters. A BBQ official said, "It is true that the business environment is challenging due to the current increase in all raw material prices and the additional expense of delivery app commissions," adding, "We cannot predict how much further they will rise, but headquarters has decided to bear all expense increases and endure the pain."