BBQ Raises Chicken Prices After 2 Years... What About Kyochon and bhc?

BBQ Golden Olive 20,000 Won → 23,000 Won
Kyochon Original Up 4,000 Won
"Inevitable Decision Due to Franchisee Profit Decline"

Following Goobne and Puradak, BBQ has also raised its chicken prices. As BBQ, one of the top three chicken franchises in Korea, joins the price hike, attention is turning to the pricing policies of Kyochon Chicken and bhc. However, Kyochon Chicken faced a 'boycott' backlash due to last year's price increase, and bhc raised prices just five months ago, so no changes are expected for the time being.

Hwanggeum Olive increases by 3,000 won after 2 years... "The most expensive fried chicken among the top 3 brands"

Genesis BBQ, which operates the chicken franchise BBQ, announced on the 21st that it will raise the recommended retail prices of 23 products by an average of 6.3% starting from the 23rd. As a result, the price of the flagship menu, Hwanggeum Olive Chicken Fried, will increase from 20,000 won to 23,000 won. This is the highest price among the fried chicken offerings of the top three chicken brands. Currently, Kyochon Chicken Original is priced at 19,000 won, and bhc Fried Chicken is set at 20,000 won. Another popular BBQ menu item, Jamaica Whole Leg Chicken, will change from 21,500 won to 24,000 won.

However, out of a total of 110 products, prices for 56 products, which is half, will remain unchanged. This includes 30 chicken items such as Hwanggeum Olive Chicken Tenderloin, Kkanpung Chicken, and Jamaica Sausage & Rice Cake Chicken, as well as all 26 side menu items like pizza and burgers. A BBQ representative emphasized, "We did our best to minimize the number of products subject to price adjustments amid the high inflation situation."

For 31 products, a price reduction effect was achieved through increased quantity. Among these, six items including 'Kkanpung Chicken' and 'Extreme King Ribs Chicken' added one chicken leg without changing the price. The remaining 25 products saw price increases but also increased portions. For example, the Hwanggeum Olive Chicken Combo became 3,000 won more expensive, but the number of chicken legs increased by one to five.

This price increase by BBQ is the first in two years since May 2021. At that time, BBQ raised the price of Hwanggeum Olive Chicken from 18,000 won to 20,000 won.

The current price adjustment is due to rising costs of raw materials including chicken meat and olive oil, as well as sharp increases in minimum wage and rent. A BBQ representative explained, "This unavoidable measure was taken because franchisees could no longer endure deteriorating profitability." According to BBQ's own survey, sales at the top 40% of franchise stores increased by about 20% in April this year compared to the same period last year, but operating profit decreased by nearly 10%.

However, since BBQ switched last year from using 100% olive oil to a 'blending olive oil' composed of 50% olive oil and 49.99% sunflower oil, citing the rise in international olive oil prices, consumer backlash against the price increase is expected to be unavoidable.

Yoon Hong-geun, chairman of Genesis BBQ, stated in a 2022 interview that "Chicken prices should be 30,000 won, not 20,000 won (due to costs and other reasons)."

'Boycott backlash' Kyochon Chicken, bhc raised prices 5 months ago and "No plans to increase prices yet"

With BBQ's price increase, consumers are closely watching the moves of the other two major chicken brands, Kyochon Chicken and bhc. Previously, Goobne, the fourth largest chicken franchise by sales, raised prices by 1,900 won for nine chicken products including Gochu Basasak, and Puradak also increased prices by 1,000 won for single items and set menus.

First, Kyochon Chicken has stated that there will be no price increases for the time being. The most recent price hike by Kyochon Chicken was 1 year and 1 month ago, in April last year. At that time, Kyochon Chicken raised the price of 'Kyochon Honey Original' from 16,000 won to 19,000 won, 'Honey Combo' from 20,000 won to 23,000 won, and 'Red Original' from 17,000 won to 20,000 won, citing worsening profitability. As a result, Kyochon Chicken faced a consumer boycott backlash, and despite the price increase, sales dropped 14% year-on-year to 445 billion won last year. Therefore, price adjustments are unlikely in the near future. A Kyochon Chicken representative said, "There are no plans to raise chicken prices," and a bhc Chicken representative stated, "We do not plan to raise prices at this time."