Seoul Shilla Hotel Raises Price of Jeju Apple Mango Bingsu by 9.3%

Cost-Linked Pricing Applied
Apple Mango Ingredient Cost Up 15.2%

[Asia Economy Reporter Cha Min-young] As the price of Jeju-grown apple mangoes rises due to the novel coronavirus infection (COVID-19), the Seoul Shilla Hotel has decided to increase the price of its signature menu item, 'Jeju-grown Apple Mango Bingsu.'

On the 26th, the Seoul Shilla Hotel announced that it will raise the price of Jeju-grown Apple Mango Bingsu sold at The Library from the previous 54,000 KRW to 59,000 KRW, a 9.3% increase.

The Jeju-grown Apple Mango Bingsu is a limited summer season menu, launched on the 29th of last month and will be sold until August 31. The daily sales volume is about 100 bowls on average, serving approximately 300 customers per day as it is suitable for 2 to 3 people.

This price increase is due to the burden caused by rising raw material costs. Recently, as the supply of imported mangoes has decreased, domestic demand for the substitute, Jeju-grown apple mangoes, has increased, causing prices to surge. The cost of Jeju-grown apple mangoes (850g) used per bowl has risen about 15.2%, from 33,000 KRW to 38,000 KRW.

However, the hotel explained that although the price has been raised, the proportion of raw material costs still exceeds the original cost-linked target of 70%. The total raw material cost, including mango flesh (38,000 KRW), finely shaved frozen milk snow bingsu (3,000 KRW), red beans, condensed milk, and other auxiliary materials (3,000 KRW), accounts for 74.6% of the revised selling price. Adding labor costs of 14,000 KRW for chefs and hall serving staff results in a total of 58,000 KRW.

Meanwhile, due to concerns over the resurgence of COVID-19 from the Itaewon club outbreak, the Seoul Shilla Hotel has temporarily suspended weekend and holiday sales of bingsu and is operating only on weekdays. The operating hours of The Library have also been changed to 11 a.m. to 11 p.m. This measure aims to reduce the hotel's burden amid the increase in confirmed cases and to alleviate traffic congestion caused by local construction.