"Free Delivery" Big Mac Set... Turns Out I Paid 1300 Won More Than In-Store Price

No Dual Pricing Regulation Measures
Sometimes Consumers Are Not Notified

As delivery platforms promote free delivery, the number of dining establishments adopting dual pricing systems to reduce delivery commission burdens is increasing. This essentially means that consumers are bearing the delivery fees.

KFC reintroduced the dual pricing system in March after about two years. Popeyes raised product prices in April, setting delivery menu prices higher than in-store menu prices. The price difference for Burger King Whopper sets between delivery apps and in-store menus increased to 1,400 KRW. McDonald's also raised the price of its signature Big Mac set to 7,200 KRW in May, an increase of 300 KRW. However, when ordered for delivery, the price is 8,500 KRW, which is 1,300 KRW more expensive than the in-store price. Lotteria and Mom's Touch are also considering adopting dual pricing systems.

[Image source=Yonhap News]

Hosigi Dumari Chicken adjusted prices for some items sold through delivery apps starting from the 28th of last month. The price of the two-chicken set ordered via delivery apps increased by 2,000 KRW (8.6%), from 23,000 KRW to 25,000 KRW.

The impact of dual pricing has extended beyond fast food to coffee brands as well. At Mega MGC Coffee and Compose Coffee, the price of an Americano for delivery is 2,000 KRW, which is 500 KRW more expensive than the in-store price.

According to a survey conducted by the Korea Consumer Agency in November 2022 on 34 restaurants in Seoul listed on delivery apps, 20 places (58.8%)?including 12 snack bars and 8 fast food and chicken specialty stores?had different prices between in-store and delivery app menus. The problem is that consumers find it difficult to know whether there is a price difference between delivery and in-store menus and how much the difference is. The average price of delivery app menus (6,702 KRW) was 10.2% (621 KRW) higher than the average in-store price (6,081 KRW). In some cases, delivery menu prices were up to 4,500 KRW more expensive. However, only seven restaurants informed consumers about the application of dual pricing.

Consumer resentment toward dual pricing is growing, but there are no adequate means to regulate it. This is because there are no clear regulations prohibiting dual pricing.