Gongcha Korea Raises Prices on Selected Beverage Menu Items

[Asia Economy Reporter Moon Hyewon] Gongcha Korea announced on the 20th that it will raise the prices of some beverage menu items starting from the 21st.

Gongcha Korea explained that although it reconsidered the price increase due to concerns about consumer burden and internally absorbed the costs at headquarters, it decided to raise prices on some menu items as a measure to prevent worsening burdens on franchise owners and to maintain quality and service.

This price increase is the first in four years, with the main factors being the continuous rise in raw material costs, labor costs, and other direct and indirect expenses related to store operations. The minimum wage has increased by about 35% compared to the last increase in 2017.

The items with price increases include 21 out of 37 menu items, such as milk tea, smoothies, and coffee varieties. Among these, 20 items will increase by 200 KRW, and only one item, the green grape smoothie, will increase by 300 KRW (an average of about 4.9%). The remaining 16 items will maintain their current prices.