"Delivery App Customers Believed 'Free Delivery'... Ended Up Paying More Than In-Store Price [Heotdari Economy]"

(38) Delivery Apps Offering 'Free Shipping'
Menu Prices Confirmed More Expensive Than Stores

Mr. Lee Kyung-min (35) tried to order Baruda Kim Seonsaeng Gimbap through a delivery app but noticed that the prices were different from those at the store. The tuna gimbap and keto gimbap he usually eats were about 500 won more expensive on the delivery app. When he added various rice bowls and other items, the difference quickly reached 3,000 to 4,000 won. When he asked the staff during ordering, he was told, "It's because of the commission fees."

Many places advertise "free delivery" when ordering food through delivery applications (apps). However, many of these places set menu prices higher than in-store prices despite claiming "free delivery," so caution is required. Since the difference in menu prices between the delivery app and the store is not clearly indicated, consumers find it difficult to recognize the exact price difference.

KFC store prices and delivery app prices are different.

To compare prices between stores and delivery apps, I visited a KFC store in person. The Zinger set is sold for 7,900 won at the store. On the delivery app, it costs 8,400 won per set. Chicken prices also differ. At the store, you can buy three pieces of seasoned drumsticks for 10,200 won, five pieces for 16,700 won, and eight pieces for 25,400 won. On the delivery app, these are priced at 10,800 won, 17,700 won, and 27,000 won respectively, which is more expensive.

Salady and Bareun Kimbap have different prices in stores and on delivery apps.

Visiting the salad franchise Saladie, the Tandanji salad and Cobb salad are sold for 8,600 won and 8,900 won respectively. On the delivery app, they are priced at 9,500 won and 9,800 won. The prices of warm bowls (poke) also differ. The Usamgyeop warm bowl, which can be purchased for 8,600 won at the store, is sold for 9,500 won on the delivery app. The mushroom tofu warm bowl costs 8,900 won at the store but 9,800 won on the delivery app.

Snack franchises also apply dual pricing. The Ssada Gimbap, which costs 3,500 won at the store, is 4,000 won on the delivery app. Soup tteokbokki and cheese tteokbokki are sold for 5,500 won and 7,000 won respectively at the store, but when ordered through the delivery app, they cost 6,000 won and 7,500 won. Tuna gimbap, which can be eaten for 6,300 won at Baruda Kim Seonsaeng stores, is 6,800 won on the delivery app. Galbi dumplings are 5,800 won at the store and 6,300 won on the delivery app. Although the difference per menu item is 500 won, when ordering various items, the difference quickly adds up to 3,000 to 4,000 won.

Some drinks at the coffee franchise Mega MGC Coffee are also more expensive on delivery apps. While some items like Americano (2,000 won) maintain the same price, peach iced tea and apple yuzu tea, which can be purchased for 3,000 won and 3,500 won respectively, cost 500 won more when bought through the delivery app, priced at 3,500 won and 4,000 won respectively.

According to a survey conducted last year by the Korea Consumer Agency on 34 restaurants in Seoul listed on Baedal Minjok, Yogiyo, and Coupang Eats, out of 1,061 menu items, 529 (51%) were more expensive for delivery than dining in. Among the surveyed places, 80% (20 restaurants), including 12 snack shops and 8 fast food and chicken specialty stores, applied dual pricing, with menu prices being about 620 won to 4,500 won higher.

Why Dual Pricing?

Food service companies unanimously say that the reason for introducing dual pricing is the burden of delivery costs such as platform commissions. In addition to bearing delivery fees, they must pay a 9.8% commission fee on food prices for order mediation on Baemin and Coupang Eats. Including VAT, this amounts to 10.8%.

A chicken restaurant owner met during the investigation said, "Delivery fees are 4,000 to 5,000 won per order, and on rainy days, up to 10,000 won," adding, "After deducting the delivery app commission (9.8%), there is nothing left." He acknowledged being aware of dual pricing but said he had no choice but to accept it. KFC also cited changes in the delivery market environment and commissions as reasons for dual pricing. A KFC representative stated, "The reasons include delivery commissions and increased costs of raw materials including packaging," adding, "To provide stable delivery services, we had no choice but to operate separate prices exclusively for delivery."

Professor Lee Eun-hee of Inha University's Department of Consumer Studies emphasized that consumers should also be aware of dual pricing. Professor Lee advised, "Price is basic information that consumers must know," and added, "There should be a notice stating that 'delivery app prices differ from in-store prices' so consumers can make accurate judgments by seeing the prices."

Editor's NoteMany people thought they were engaging in smart economic activities to get better deals, but often ended up making mistakes. When deceived by corporate marketing or blinded by momentary gains, consumers ultimately suffer. This article examines economic activities where people misjudge everyday situations and make wrong decisions, or "missteps."