"Can't Bear the Fees"... Lotteria Delivery App Orders Up to 1300 Won More

Decided to Separate Store and Delivery Prices for Franchisee Profit
"Announce Price Differentiation to Provide Accurate Information"

The price of hamburgers purchased at Lotteria stores and through delivery apps will differ. For set menus, using a delivery app will cost 1,300 KRW more.

Lotteria, a burger franchise operated by Lotte GRS, announced on the 23rd that starting from the 24th, it will operate separate pricing for offline stores and delivery services.

According to Lotte GRS, when ordering through delivery platforms, various costs such as delivery fees, brokerage fees, and delivery charges account for about 30% of sales.

A Lotte GRS representative explained, "As free delivery competition among platforms continues, the cost burden on franchise stores is expected to increase further. Therefore, we have established a differentiated final delivery service pricing policy in consultation with the nationwide franchise council to prevent deterioration of franchise store profits."

The differentiated pricing for Lotteria delivery service products is about 700 to 800 KRW for single-item menus and around 1,300 KRW for set menus.

However, if you order through the company’s own app, ‘Lotte Eats’, you can enjoy free delivery without a delivery tip for minimum orders starting from 14,000 KRW.

Additionally, to ensure consumers’ right to know and their freedom of choice regarding the separate pricing operation, notifications about the price policy changes by channel will be provided through the company’s app and external delivery platforms.

A Lotte GRS representative said, “As the franchisor, we decided to change the delivery service operation policy to guarantee franchise store profits in response to changes in the delivery order environment through a win-win meeting with the nationwide franchise council. We will provide sufficient guidance through notifications by delivery order channels to avoid customer confusion.”