"Lunch with a Hamburger"... Office Workers Frown Over Another Fast Food Price Hike

Fast Food Brands Raise Prices for the Second Time in Six Months
Office Workers Who Sought 'Affordable Meals' with Burgers Sigh
Convenience Store Lunchboxes and Supermarket Deli Corners Also Popular
"Price Inflation Expected to Peak in October"

Fast food brands are raising prices, which is expected to increase the lunch expenses burden for office workers. The photo shows a hamburger restaurant in downtown Seoul.
[Image source=Yonhap News]

[Asia Economy Reporter Park Hyun-joo] As dining-out prices soar sharply, more office workers are opting for inexpensive hamburgers to settle their lunch. Amid this, fast-food brands have implemented additional price hikes, which is expected to increase the lunch cost burden felt by office workers. Some have even started so-called 'Jjantech (frugality + financial technology)' to save on living expenses.

Fast-food brands that raised prices once at the end of last year and the beginning of this year have recently implemented further price increases. Burger King raised prices on 46 menu items by an average of 4.5% starting from the 29th. This is an additional increase about six months after raising some product prices by an average of 2.9% in January. KFC also adjusted prices on some menu items again on the 12th, following a price increase in January. Lotteria raised product prices by an average of 4.1% in December last year and added another average increase of 5.5% last month.

The price hikes in the dining-out industry were already anticipated. The industry explains that price increases were inevitable due to soaring raw material costs and logistics expenses. However, concerns are rising as the price increase cycle is becoming shorter amid continuously rising inflation.

Office workers heading to fast-food outlets during lunch hours expressed disappointment. As inflation thins wallets, many have turned to relatively inexpensive hamburgers for lunch. On the 8th, Mom's Touch announced that lunch-time (11 a.m. to 2 p.m.) sales in the second quarter increased by 29.8% compared to the same time in the first quarter. This is a 23.3% increase compared to the same period last year.

A 20-something office worker, Mr. A, said, "Except for handmade burgers or expensive brands, hamburgers are an affordable and light meal option," adding, "But I was surprised that prices have risen more than I expected." He continued, "A single hamburger is not enough for a meal, so I usually get a set, but adding fries and a drink makes it expensive," and said, "It's disappointing that prices are going up again."

According to the National Statistical Office's National Statistics Portal, the dining-out price index in the first half of this year (January to June) rose 6.7% compared to the cumulative total last year. Especially, the consumer perception of the price drop in dining-out prices is significant, leading to the emergence of a new term, 'Lunchflation (lunch + inflation).'

As dining-out prices rise, office workers have started to have lunch with convenience store lunch boxes and deli corners at supermarkets. The photo shows citizens passing by a restaurant billboard on Myeongdong Street in Seoul. [Image source=Yonhap News]

Given this situation, some office workers have started to settle meals at convenience stores. From the 1st to the 26th of last month, sales of lunch boxes and prepared bread at Emart24 increased by 48% and 39%, respectively, compared to the same period last year. Particularly, analyzing sales data by commercial district showed that lunch box (68%) and prepared bread (52%) sales increased the most in office districts. CU and GS25 also saw lunch box sales rise by 35.5% and 49.8%, respectively, compared to the same period last year over the past two months.

The popularity of deli corners in supermarkets, which offer a variety of menus at relatively low prices, has also increased. From the 18th of last month to the 17th of this month, lunch-time (11 a.m. to 2 p.m.) sales at Homeplus deli corners rose 49% compared to the same period last year. During the same period, lunch-time sales at Emart and Lotte Mart deli corners also increased by 6.6% and 10%, respectively, compared to the same period last year.

Meanwhile, analysis suggests that high inflation will continue in the second half of the year. On the 27th, Chief Economic Secretary Choi Sang-mok said at a briefing at the Yongsan Government Complex in Seoul, "Although inflation is at a high level, I believe it is approaching its peak," adding, "Including South Korea, the peak is expected around October." He continued, "Concerns about economic slowdown are increasing, so ultimately, we need to manage both the economy and inflation."