[Exclusive] 'Ordering Chicken Feels Scary'... Original Price Up 3,000 Won to 19,000 Won

Original, Partial Meat, Boneless Increased by 3,000 Won
Side Menu and Sauces Also Up by 500 Won and 200 Won

Kyochon F&B, the operator of the chicken franchise brand Kyochon Chicken, will raise chicken prices starting early next month. For the Kyochon Original menu, the price per whole chicken will increase by 3,000 won from 16,000 won to nearly 20,000 won.

Kyochon Honey Original, Red Wing.
Photo by Kyochon F&B

According to industry sources on the 24th, Kyochon F&B decided to raise the price of a whole chicken by 3,000 won for Original, partial cuts (wings, combo), and boneless products starting from the 3rd of next month. For partial cuts and boneless products, prices will increase by 2,000 won and 1,500 won respectively for half portions.

Some side menu items will also see a 500 won price increase. Two types of sauces, Real Orange Sauce and Blueberry Sauce, will be raised by 200 won each. However, recently launched new menu items such as the Black Secret Series and Bangkok Jumbo Wings will not have their prices increased this time.

This price increase is expected to also raise the cost of main ingredients like fresh chicken supplied to franchise stores. Kyochon headquarters has frozen the supply prices of major raw materials to franchise stores for 10 years since 2014.

A Kyochon F&B representative said, "Due to accumulated cost burdens, we have inevitably decided to adjust prices," adding, "We will repay customers with better quality and service."

The price increase in Kyochon’s menu is also interpreted as a move to strengthen profitability. Last year, Kyochon recorded a consolidated sales revenue of 517.6 billion won, a 2.0% increase from the previous year, marking an all-time high, but operating profit shrank by 78.2% to 8.9 billion won. On a separate basis, sales reached 498.9 billion won, and Kyochon lost its number one position in the chicken industry to bhc for the first time in eight years.

There are also forecasts that the chicken franchise industry’s price hike trend may continue following Kyochon’s increase. This is because the price of fresh chicken, the main ingredient of chicken, has risen sharply, and other material costs are also increasing. The price of fresh chicken reached its highest level in 36 years in mid-this month. At that time, the average nationwide price per kg for large, medium, and small broiler chickens all exceeded 3,000 won. Currently, as of the previous day, prices have somewhat stabilized at 2,790 won for large, 2,890 won for medium, and 2,990 won for small per kg, but the upward trend is expected to continue for the time being. This is due to the sharp rise in feed prices since last year and increased heating costs for operating heating facilities such as heat blowers, causing overall production costs to surge significantly.