[Matjalal X File] "I Ordered Pickup to Save Delivery Fee"…Consumers Angry Over Double Pricing

Delivery to Pickup Orders, Baemin-Naver Prices Differ
Paris Baguette Happy Order Also More Expensive Than Store Price
"If Prices Differ, Consumers Must Be Notified to Choose"

Ms. Han Guseul (a pseudonym), who lives near Hongdae Ipgu Station, ordered a salad, a sandwich, and two drinks from Baedal Minjok on her way home from work. Although she was a bit tired, she decided to pick up the order herself to save the 3,000 won delivery fee. After several tens of minutes searching for the store using Naver Maps, she discovered a surprising fact: the prices on Baemin were higher than those on Naver. Calculating the menu she ordered that day, there was a 2,600 won difference (Baemin: 28,100 won, Naver: 25,500 won). Even after applying a 5% coupon for takeout, Baemin was still over 1,000 won more expensive. Ms. Han said, "I had been ordering frequently without knowing this, but it felt like a betrayal," and added, "I don't understand why the prices differ when I'm not even getting delivery but picking up the order myself."

The photo is not related to any specific expressions in the article. [Image source=Getty Images Bank]

Consumers are outraged by this 'dual pricing.' This phenomenon has emerged recently as food ordering platforms have diversified and franchise-specific apps have appeared. Prices vary greatly depending on where and how you order.

In fact, it has long been known that delivery prices are often higher than in-store prices. Last year, the Consumer Agency surveyed 34 restaurants in Seoul and found that 6 out of 10 charged more for delivery than for in-store dining, excluding delivery fees. For example, a snack bar’s kimchi fried rice costs 7,500 won when eaten in-store or taken out, but 8,000 won when delivered. Consumers who have already paid a 3,000 won delivery fee were frustrated, but many assumed it was due to platform commission fees.

However, the problem is that, as in Ms. Han’s case, this dual pricing is spreading even to pickup orders. "Why are the prices for takeout orders different between Naver and Baemin?" We directly inquired with Baemin about the dual pricing issue and received the response that "the pricing authority lies with each franchise or restaurant." In other words, the owners set the prices. But since the commission fee Baemin charges owners for pickup orders is zero, and owners only pay similar payment processing fees as on Naver, why create dual pricing?

The dual pricing phenomenon can also be seen in brand-operated apps. For example, in Paris Baguette’s own app, Happy Order, pickup order prices can be higher than in-store prices. Let’s look at the popular cheese sausage pastry. The in-store price is 3,100 won, but ordering through the app costs 3,700 won. A consumer, Gu Hyejin (a pseudonym), living in a small city in Chungnam, reported, "I happened to have a 5,000 won discount coupon on the app and placed a pickup order, but when I went to the store, the price was much cheaper, which was frustrating." She added, "If I had used a carrier discount and local pay, the prices might have been similar." Paris Baguette explained that the price alignment with other online platforms was made at the request of franchise owners and that they also notify customers about the price differences between the app and offline stores.

Pickup orders are one of the thrifty consumer patterns to save a few thousand won in delivery fees amid soaring prices. However, when prices differ depending on the platform, some consumers who are unaware end up losing money without saving on delivery fees. Even informed consumers have to bear the hassle of comparing delivery prices, pickup prices, and phone order prices. Of course, with rising commissions, ingredient costs, and labor costs, small business owners are struggling too. But that does not mean they should pass platform fees onto pickup customers. At the very least, if there is consideration and care for customers, platforms should have the sense to notify consumers that prices vary by platform.