Snack Bar, Ramen Prices Up 12.6% Causing Distress
Chicken Restaurant, Cooking Oil Prices Soar 60% Causing Hardship
[Asia Economy Reporter Seungjin Lee] As eggflation intensifies, processed food prices are rising, leading to an increase in dining-out costs.
On the 19th, following the price hikes of cooking oil and flour, processed food prices such as ramen are rising, and the dining industry is expected to follow suit with price increases. Snack bars are currently considering raising ramen menu prices after Ottogi decided to increase the price of Jin Ramen by 12.6% starting in August.
A, who runs a snack bar, said, "In self-employed communities, there are opinions that the cost burden has increased so much that the price of ramen, which is about 3,000 won per bowl, should be raised by about 500 to 1,000 won." He added, "With fewer customers, if we want to reduce rent, it seems necessary to raise the ramen price by about 1,000 won immediately."
The chicken industry is also struggling over price increases. Last year, poultry prices rose due to avian influenza (AI), but major franchise companies have absorbed the cost burden at the headquarters level. However, with the prices of cooking oil and agricultural products all rising, it has become difficult to endure any longer. Major chicken franchise headquarters currently state that there are no plans to raise prices. However, as franchisees continue to demand price increases, price hikes are expected in the second half of the year.
According to the industry, due to the rise in soybean prices, the price of 18ℓ cooking oil purchased by regular restaurants rose sharply from around 30,000 won at the beginning of this year to the 40,000 won range. Regarding flour prices, CJ CheilJedang, the industry leader, maintains that "there are no plans to raise prices yet," but prices of noodles and other products made from flour have surged, resulting in an effective increase of over 40% in the dining industry's perceived inflation.
According to the National Statistical Portal, the producer price index for restaurants and pubs recorded 114.82 in April this year. This is the highest figure in the past five years and has risen for five consecutive months. A food industry official explained, "As raw material prices rise, processed food prices increase, and the cost is passed on to dining establishments, creating a vicious cycle." He added, "Global grain prices are not expected to stabilize in the second half of the year, so price increases will be implemented in various sectors in the latter half as well."
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