Lotteria to Raise Prices by an Average of 2.2% Starting the 8th
No Brand and KFC Also Adjust Prices One After Another
"Delivery Fees and Raw Material Costs Increase... An Inevitable Choice"
This year, major burger franchises have successively raised their prices. Starting with No Brand Burger in February, followed by McDonald's in May and KFC in June, Lotteria has also joined the price hike trend. These companies state that the decision was inevitable due to increased delivery service and raw material costs.
Lotteria Bulgogi Burger Set 6,900 KRW → 7,100 KRW
Lotteria's operator, Lotte GRS, announced on the 5th that it will raise prices on 20 types of burgers by an average of 2.2% starting from the 8th.
For the most popular Bulgogi and Shrimp burgers, the price will increase by 100 KRW for single items and 200 KRW for set menus. As a result, the Bulgogi burger will be sold at 4,800 KRW for single and 7,100 KRW for the set. The Shrimp burger will also be raised to 4,800 KRW for single and 7,100 KRW for the set.
The menu items with the largest price increase are the Hanwoo Bulgogi Burger and Double Hanwoo Bulgogi Burger. Prices will rise by 200 KRW for single items and 300 KRW for sets. Consequently, the Hanwoo Bulgogi Burger will be priced at 8,600 KRW for single and 10,500 KRW for the set. The Double Hanwoo Bulgogi Burger will be 12,600 KRW for single and 14,500 KRW for the set.
No Brand, McDonald's, and KFC Follow One After Another: "An Inevitable Choice Due to Delivery and Cost Increases"
Including Lotteria, four major burger franchises have raised prices this year: No Brand Burger, McDonald's, KFC, and Lotteria.
The first price increase was by No Brand Burger, operated by Shinsegae Food. Starting from the end of February, No Brand Burger raised prices on about 30 burger and side menu items by an average of 3.1%. The increase ranged from 100 to 400 KRW depending on the item. As a result, the price of the representative menu item, NBB Signature (single), rose from 4,400 KRW to 4,800 KRW, and the set price increased from 5,900 KRW to 6,300 KRW.
In May, McDonald's raised prices on 16 items, accounting for 22% of their entire product lineup, by at least 100 KRW and up to 400 KRW. The overall average increase was 2.8%. Popular menu items like the Big Mac and McSpicy Shanghai Burger kept their single item prices unchanged, but the set prices increased by 300 KRW from 6,900 KRW to 7,200 KRW. Other single burger items saw increases as follows: Hamburger, Cheeseburger, Double Cheeseburger, and Triple Cheeseburger each rose by 100 KRW; Bulgogi Burger by 300 KRW; and Egg Bulgogi Burger by 400 KRW.
In June, KFC also raised prices. The price of the signature Zinger set increased from 7,800 KRW to 7,900 KRW. Prices for Original Chicken, Hot Crispy Chicken, and one piece of Hot Crispy Drumstick also rose by 300 KRW each.
All of these companies cite increased delivery service ancillary costs, strong raw material prices, rising logistics fees, and labor cost increases as the internal and external factors driving the cost hikes.
A Lotte GRS representative explained, "Since the price increase in February last year, the franchise headquarters has tried to absorb the burden of rising costs, but now it has become inevitable to adjust selling prices to protect franchisee profits."
Meanwhile, Mom's Touch and Burger King, which raised prices last year, currently state that they have "no plans to increase prices" at this time.
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