bhc Chicken Lowers Frying Oil Price 'As Promised'... 4,500 KRW Off for 15kg

Sunflower Oil International Price Stabilization Reflected
Headquarters Efforts to Reduce Costs Through Supplier Diversification
"Kept Promise of Mutual Growth with Franchisees"

bhc Chicken will reduce the supply price of its proprietary frying oil, 'High Oleic Sunflower Oil,' to franchise stores by 4,500 KRW for a 15kg unit starting from the 17th.

This decision follows the recent stabilization of international sunflower oil prices. A bhc Chicken representative explained, "This is also the result of various cost-saving efforts, including diversifying the headquarters' supply sources," adding, "It is a fulfillment of our promise for mutual growth with our franchise stores." In July 2022, bhc Chicken raised the supply price of frying oil to franchise stores by nearly 60% due to a sharp increase in raw sunflower oil prices, promising to promptly lower prices when conditions allowed.

Since then, bhc Chicken has reduced the frying oil supply price twice in 2022 (July and September) and four times last year (May, August, November, and December), and now has further lowered it by 4,500 KRW after about six months. With this reduction, the bhc frying oil supply price has decreased by 43% compared to the peak price in July 2022, and is about 9% (7,500 KRW) lower than the price just before the sharp rise caused by the war in Ukraine, the main sunflower oil producing region.

A bhc Chicken representative stated, "Most food service franchise operators are experiencing worsening profits due to not only rising raw material costs but also increased labor costs, rent, order brokerage fees, and delivery agency fees," adding, "We hope this reduction in sunflower oil supply price will provide some support to our franchisees in operating their stores."

In fact, over the past two years, labor costs (minimum wage) have risen by 7.6%, and various ancillary costs such as order brokerage fees and delivery agency fees have continued to increase, causing significant difficulties for most self-employed business owners.