6000 Won Food Costs 6700 Won When Ordered via Delivery App... Half of the Menu Is More Expensive

Consumer Agency, Results of Price Survey on 1,061 Items

Price differences by menu.
[Photo by Korea Consumer Agency]

As the online food service market expands recently, consumer complaints related to delivery applications (apps) are also increasing.

On the 21st, the Korea Consumer Agency surveyed the prices of 1,061 menu items from 34 restaurants located in Seoul listed on Baedal Minjok, Yogiyo, and Coupang Eats. The results showed that one out of every two menu items was more expensive when ordered for delivery than when eaten in-store.

By industry, 20 restaurants (58.8%), including 12 snack bars and 8 fast food and chicken specialty stores, set different food prices between in-store and delivery apps. Among these, 13 restaurants did not notify that delivery prices could differ from in-store prices.

By menu, prices differed for 541 out of 1,061 items (51%), and among these, 529 items (97.8%) were more expensive for delivery than in-store. The average price of menus more expensive for delivery was 6,702 won, which is 10.2% higher than the in-store price of 6,081 won.

It was found that increases in delivery app commission fees and advertising costs led to higher food prices, increasing the burden on consumers. In a survey of 1,005 small business restaurant owners, 49.4% said they raised food prices or delivery fees borne by consumers when commission fees increased, and 45.8% said they did so or reduced food portions when advertising costs increased.

For public delivery apps operated or supported by local governments, delivery fees in Seoul were generally similar to those of private delivery apps, but in some cases, public delivery fees were higher. The overall consumer satisfaction score for seven apps?private delivery apps (Baedal Minjok, Yogiyo, Coupang Eats) and public delivery apps (Daeguro, Meokkebi, Baedal-ui Myeongsu, Baedal Teukgeup)?was an average of 3.52 points, with public apps showing relatively higher satisfaction than private ones. By company, Daeguro scored 3.62, Coupang Eats 3.58, Baedal Teukgeup 3.54, and Meokkebi 3.53, with differences between companies falling within the margin of error.

The Korea Consumer Agency stated, “We plan to recommend delivery app operators to establish win-win measures through adjustments of commission fees and delivery charges, and to urge related dining industry organizations to strengthen education and publicity regarding price display within delivery apps.”