"Chicken Price Should Be at Least 30,000 Won," Says BBQ Chairman... The Unfair Delivery Industry [Chosun Price Records]

②Delivery fee combined makes chicken price 30,000 won
Main cause of inflation, is it delivery apps?
Government releases experimental statistics on dining delivery fees

"A whole chicken should cost at least 30,000 won." (Yoon Hong-geun, Chairman of BBQ Group)

The words of the chicken franchise chairman have become reality. To order chicken at home, consumers now have to pay up to 30,000 won. This is due to major chicken brands raising their prices earlier this year, coupled with delivery fees becoming effectively part of the food cost since the COVID-19 pandemic.

Consumers who consider delivery fees as part of the chicken price point to delivery apps as the main culprit of 'chickenflation' (chicken + inflation). They argue that the involvement of delivery platforms between consumers and restaurants has driven up dining prices. In fact, delivery fees have surged sharply during the COVID-19 period. Although delivery fees fluctuate depending on distance, delivery method, time of day, and weather conditions, there were times when a single delivery fee exceeded 10,000 won. As more people sought contactless services due to the pandemic, delivery fees also rose significantly.

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The delivery industry has grown enormous. Woowa Brothers, which operates Baedal Minjok with a market share of 70%, recorded an operating profit of 424.1 billion won on a consolidated basis in 2022, the third year of COVID-19, turning profitable and achieving record sales close to 3 trillion won. While the delivery industry enjoyed a boom, consumers had to bear the burden of high food prices.

The delivery industry claims it is unfairly blamed. Delivery fees are usually shared between restaurants and consumers, and they explain that restaurants increased the consumer's share of delivery fees to cover rising operating costs. The problem is that statistics do not accurately capture how much delivery fees account for in food prices, making it difficult for consumers to track trends. The government counts food prices including delivery fees as part of dining-out inflation in price statistics.

A delivery worker recruitment notice is posted at a local center of a delivery agency in downtown Seoul. Photo by Hyunmin Kim kimhyun81@

As the 'delivery fee controversy' continues, the government announced plans to separately investigate in-store prices and delivery prices (based on standard distances). Starting in 2025, 'dining delivery fees' will be newly included in the consumer price survey items to understand how much delivery fees contribute to actual dining price increases. Before revising the dining delivery fee index, Statistics Korea released an 'experimental statistic' last month.

Experts analyze that while it is difficult to pinpoint the exact causes of dining price increases through this effort, at least the trend of rising delivery fees can be confirmed. Professor Lee Eun-hee of Inha University's Department of Consumer Studies explained, "Separating food prices and delivery fees is desirable. Understanding which parts of prices are rising allows for measures to be taken if increases are excessive. Consumers, suppliers, and the government can all grasp the situation more accurately."

However, she pointed out, "Since delivery app commissions and marketing costs are calculated together with food prices, it is limited to understand whether price increases are due to delivery apps charging high commissions or marketing fees causing restaurant owners to raise menu prices, or due to other reasons, solely through the dining delivery fee index."