Price Increase of up to 400 KRW on 16 McDonald's Items
"Inevitable Decision Due to Rising Raw Material and Logistics Costs"
Following the April 10 general election, the restaurant industry has been implementing widespread price increases, and McDonald's has decided to raise prices on 16 items by up to 400 KRW.
For popular menu items like the Big Mac and McSpicy Shanghai Burger, the individual item prices remain unchanged, but the set prices will increase from 6,900 KRW to 7,200 KRW, a 300 KRW hike. During lunch hours, the McLunch discount price will rise from 6,100 KRW to 6,300 KRW, an increase of 200 KRW.
McDonald's Raises Prices by up to 400 KRW... Big Mac and Shanghai Burger Set Prices Up 300 KRW
McDonald's announced on the 26th that starting from the 2nd of next month, it will increase prices on 16 items, which account for 22% of its entire product lineup, by a minimum of 100 KRW and a maximum of 400 KRW. The overall average price increase rate is 2.8%.
A McDonald's representative explained, “Due to rising costs of raw materials, logistics, labor, and other expenses, a price adjustment was unavoidable. However, we made every effort to minimize the number of items and the scale of the adjustments to reduce the burden on customers.”
Among burger single-item menus, the prices of Hamburger, Cheeseburger, Double Cheeseburger, and Triple Cheeseburger will each increase by 100 KRW; Bulgogi Burger will increase by 300 KRW; and Egg Bulgogi Burger will increase by 400 KRW.
The prices of popular items such as the Big Mac and McSpicy Shanghai Burger single items will remain unchanged. When using McLunch, the Big Mac and McSpicy Shanghai Burger sets will be sold at 6,300 KRW, up from 6,100 KRW.
A McDonald's representative stated, "For burger set menus, the discount amount has changed for some items, resulting in price adjustments ranging from 100 KRW up to 400 KRW."
To ensure a pleasant in-store experience for families, the price of the children's menu ‘Happy Meal’ will remain frozen, and all coffee menu items at McCaf? will maintain their current prices.
McDonald's Continues Operating Losses, Raises Prices Again Five Months After November Increase
McDonald's also raised prices in November last year. At that time, prices for 13 menu items were increased by an average of 3.7%, and in February last year, some menu prices were raised by an average of 5.4%.
Last year, McDonald's recorded its highest-ever sales of 1.292 trillion KRW. Direct store sales, excluding franchise stores, increased by 12.4% year-on-year to 1.118 trillion KRW, surpassing 1 trillion KRW for the first time.
Despite this, losses continue. Last year's operating loss was 20.3 billion KRW, a 27% decrease compared to the previous year.
Restaurant Industry Price Surge Expected to Continue... Popeyes and Goobne Chicken Also Raise Prices
In addition to McDonald's, price hikes are continuing across the restaurant industry, including burger and chicken franchises. Popeyes raised prices on chicken, sandwiches, side menus, desserts, and beverages by an average of 4% on the 15th. As a result, prices of affected items increased by 100 to 800 KRW compared to before.
Chicken franchise Goobne also raised prices on nine menu items by 1,900 KRW each on the 15th, citing increases in delivery fees, labor costs, and rent. Consequently, the popular menu item Gochu Basasak rose from 18,000 KRW to 19,900 KRW, and the Original increased from 16,000 KRW to 17,900 KRW.
Shinsegae Food’s No Brand Burger also raised prices on about 30 items, including burgers and side menus, by an average of 3.1% starting February 29. The signature menu item NBB Signature (single item) price increased by 400 KRW (9.1%) from 4,400 KRW to 4,800 KRW.
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